SBA Loans

SBA loans offer some of the most favorable terms available for small business financing. Through our trusted partner network, we connect Dallas businesses with SBA 7(a) loans and microloans that offer lower rates and longer repayment terms than conventional business loans.

What Are SBA Loans?

SBA loans are partially guaranteed by the U.S. Small Business Administration, a federal agency dedicated to supporting small businesses. The SBA doesn’t lend directly; instead, it sets guidelines and provides guarantees to approved lenders, reducing their risk and enabling better terms for borrowers.

Why SBA Loans Stand Out

• Lower interest rates than conventional business loans
• Longer repayment terms reducing monthly payments
• Lower down payment requirements in many cases
• Government backing provides lender confidence

However, SBA loans come with more paperwork and longer approval times than alternative financing. They’re ideal when you have time to wait and want the best possible terms.

Types of SBA Loans

SBA 7(a) Loans

The most common SBA loan program, 7(a) loans can be used for almost any business purpose:

Loan Amounts: Up to $5 million Terms: Up to 25 years for real estate, 10 years for equipment, 7 years for working capital Interest Rates: Prime rate plus a margin (typically 2.25% to 2.75%) Best For: General business purposes, expansion, acquisitions, refinancing

Common Uses:

• Working capital and inventory
• Equipment purchases
• Real estate acquisition
• Business acquisition
• Debt refinancing

SBA Microloans

Smaller loans for startups and businesses needing modest capital:

Loan Amounts: Up to $50,000 (average around $13,000) Terms: Up to 6 years Interest Rates: 8% to 13% Best For: Startups, newer businesses, smaller capital needs

Common Uses:

• Working capital
• Inventory
• Supplies
• Furniture and fixtures
• Small equipment

SBA 504 Loans

Designed for major fixed asset purchases:

Loan Amounts: Up to $5.5 million (higher for some projects) Terms: 10 to 25 years Structure: Part from bank, part from Certified Development Company Best For: Real estate, large equipment purchases

SBA Loan Benefits

Lower Interest Rates

SBA loan rates are typically lower than conventional business loans because the government guarantee reduces lender risk. This can save thousands over the life of your loan.

Longer Repayment Terms

Terms up to 25 years mean lower monthly payments compared to shorter-term alternatives. This preserves cash flow for operations and growth.

Lower Down Payments

Many SBA loans require only 10% down, compared to 20-30% for conventional loans. This means less capital needed upfront.

Flexible Use of Funds

SBA 7(a) loans can be used for almost any legitimate business purpose, giving you flexibility in how you deploy capital.

Build Business Credit

Successfully managing an SBA loan helps establish and build your business credit profile.

SBA Loan Requirements

SBA loans have stricter requirements than alternative financing:

Business Eligibility

• For-profit business operating in the U.S.
• Small business by SBA size standards (varies by industry)
• Owner-operated - owners must be involved in day-to-day management
• Good character - no recent bankruptcies or criminal history

Financial Requirements

• Good credit score - Typically 650+ personal credit
• Positive cash flow - Ability to service debt
• Collateral - Often required for larger loans
• Equity contribution - Usually 10%+ for acquisitions

Documentation Needed

• Business and personal tax returns (3 years)
• Financial statements (profit/loss, balance sheet)
• Business plan with projections
• Personal financial statements
• Legal documents (licenses, leases, articles of incorporation)

The SBA Loan Process

Timeline: 30-90 Days (Typical)

Unlike our faster funding options, SBA loans take weeks to months for approval. Here’s what to expect:

Week 1-2: Application Gather documents and complete the application. Our partners help ensure your application is complete before submission.

Week 2-4: Underwriting The lender reviews your application, financials, and business plan. They may request additional documentation.

Week 4-6: Approval If approved, you’ll receive a commitment letter with terms. Review carefully before accepting.

Week 6-8: Closing Legal documents are prepared, collateral is documented, and closing is scheduled.

Week 8-12: Funding After closing, funds are disbursed according to the loan agreement.

SBA Loans vs. Alternative Financing

Factor	SBA Loans	Working Capital Loans
Interest Rate	Lower (Prime +2-3%)	Higher (Factor rates)
Terms	Up to 25 years	6-24 months
Approval Time	Weeks to months	Same day possible
Documentation	Extensive	Minimal
Credit Requirements	Stricter (650+)	Flexible (500+)
Best For	Long-term needs	Immediate capital

Is an SBA Loan Right for You?

Consider SBA Loans If:

• You have time to wait for funding
• You need the lowest possible interest rate
• You want longer repayment terms
• You have good credit and financial documentation
• You’re making a major investment (real estate, acquisition)

Consider Alternatives If:

• You need funding quickly
• Your credit score is below 650
• You don’t have extensive documentation
• You need smaller amounts for shorter periods

Our SBA Loan Partner Network

Equipment Financing Dallas Pros partners with SBA-approved lenders to help Dallas businesses access government-backed financing. Our network includes:

• Community banks experienced with SBA programs
• Credit unions offering competitive SBA rates
• Non-bank SBA lenders with streamlined processes

We help match your business with the right lender based on your needs, industry, and loan purpose.

Frequently Asked Questions

How long do SBA loans take to fund? Typically 30-90 days from application to funding. Some express programs may be faster for smaller amounts.

What credit score do I need? Most SBA lenders require a minimum personal credit score of 650, though 680+ improves your chances and terms. Learn more about how to qualify for an SBA loan.

Can startups get SBA loans? Yes, through the SBA Microloan program. Startups with strong business plans and owner experience can qualify.

What can SBA loans be used for? SBA 7(a) loans can be used for working capital, equipment, real estate, acquisitions, refinancing, and most business purposes. Some restrictions apply.

Do I need collateral? Collateral requirements vary. Loans over $25,000 typically require collateral, though the SBA doesn’t decline loans solely for lack of collateral.

Ready to Explore SBA Financing?

If you’re planning a major investment, expansion, or acquisition and have time for the approval process, SBA loans offer the best rates and terms available to small businesses.

Contact us to discuss whether an SBA loan is right for your Dallas business, or explore our faster funding options if you need capital quickly.