Steps to Apply:
1
Quick Application:
Complete our simple online form and receive swift approvals.
2
Explore Choices:
Compare various options to find the ideal solution for your needs.
3
Personalize Your Terms:
​Choose the options that best suit your business objectives.
4
Get Funding:
Access funds within a few business days for most programs.
Get the Best Small Business Loan with an SBA Loan
At Merchant Pro Funding, we provide the best small business loan options, including SBA financing. Our goal is to drive your success with fast, flexible solutions tailored to your business needs.
Need help? Reach out to us:
Email: CS@merchantprofunding.com
SBA Loans To Grow
Your Small Business
SBA Loans are easily the most coveted business loans on the market. No other type of business loan can compete with their interest rates, terms, and borrowing limits. However, these advantages make SBA Loans particularly challenging to qualify for. As if the requirements weren't challenging enough, the application process often catches business owners off guard due to various misconceptions surrounding SBA Loans. To earn approval, you must first understand why SBA Loans are different yet similar to traditional Business Term Loans
In this guide, we will answer the following questions and more:
What Is An SBA (Small Business Administration) Loan?
SBA stands for "Small Business Administration." The Small Business Administration is a government agency, not a business lender. Applications for SBA Loans are not sent directly to the SBA. Instead, you must apply through one of three types of financial institutions: commercial banks, credit unions, or alternative business financing facilitators like United Capital Source. The SBA loan program can help small business owners get financial assistance to start or grow their businesses.
What makes an SBA Loan different than all other business loans is that the SBA guarantees up to 85% of loans up to $150,000 and up to 75% of loans over that amount and up to $500,000. This means that even if the borrower defaults on the loan, the financial institution still recovers a significant percentage of the borrowed funds.
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​The SBA, however, does not approve or reject applications. That's all up to the participating SBA lender, each of which has its own criteria for approval. Once the institution approves an application, it submits its application requesting the SBA's guarantee.
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Max Funding Amount:
$50K – $5.5M
Factor Rates:
Starting at Prime + 2.75%
Term:
10-25 years
Speed:
8-12 weeks
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The 7(a) Loan: This is the most popular type of SBA Loan. It can be used for purposes such as hiring employees, purchasing equipment, debt refinancing, buying commercial real estate, and ordering inventory. The maximum loan amount is $5M, with repayment terms up to 25 years. Interest rates range from 5% to 10%. Fees include a 1.7% charge for loans up to $150K and a 2.25% charge for larger loans.
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The CDC 504 Loan: SBA 504 loans are specifically for purchasing major assets, like machinery and commercial real estate. Borrowers can access up to $5.5M with repayment terms of up to 20 years. Interest rates range from 5% to 6%. Fees typically total 3% of the loan amount, and a down payment of approximately 10% is required.
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The SBA Microloan: This product is for smaller financing needs, offering up to $50K with repayment terms up to 6 years. Interest rates range from 8% to 13%, with no additional fees.
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Economic Injury And Disaster Loans (EIDL): Created for businesses affected by natural disasters, EIDLs offer up to $2M with a 3.75% interest rate and a maximum term of 30 years. The first payment is deferred for a year, and no collateral is required for loans under $200K.
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SBA Loans – Research, Facts & Reports
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In 2023, the SBA approved over 73,900 SBA loans, totaling more than $121 billion.
More than 50% of Americans work for small businesses, which create about 66% of new jobs annually.
Research indicates that 70% of small businesses seek loans under $250K.
The average SBA loan amount in 2019 was $446,487. (Source: Congressional Research Service)​
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How Do SBA Loans Work?
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Low Interest Rates: SBA loans carry incomparably low rates, often as low as 5%.
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High Borrowing Limits: Loans up to $5.5M make significant investments possible.
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Long Repayment Terms: Terms of up to 25 years allow for manageable payments.
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Diverse Uses: SBA loans can be used for a wide variety of business purposes.
What Are The Advantages of SBA Loans?
What Are The Disadvantages
of SBA Loans?
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Strict Requirements: High credit scores, steady cash flow, and significant paperwork are necessary.
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Lengthy Process: Approval can take 8-12 weeks.
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Lender Variability: Each institution has unique approval criteria.
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SBA Business Loans Compared To Other Products:​
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Loan Types
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Max Amounts
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Rates
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Speed​
Merchant Cash
Advances
$7.5K - $1M
​Starting at 1-6% p/mo
1-2 business days
Receivables/Invoice Financing
$10K - $10M
Starting at 1% p/mo
1-2 week
SBA Loan
​
$50K - $5.5M
Starting at Prime + 2.75%
8-12 weeks
Equipment
Financing
Up to $5M per piece Starting at 3.5% (SBA)
3-10+ business days
Business
Term Loan:
$10K - $5M
Starting at 1-4% p/mo
1-3 business days
Revenue-Based Business Loans
$10K - $5M
Starting at 1-6% p/mo
1-2 business days
Business
Line of Credit
$1K - $250K
Starting at 1% p/mo
1-3 business days
Approved businesses generally meet the following criteria:
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Annual Revenue: $360K+
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Credit Score: 650+
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Time in Business: 2 years+
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Who Qualifies For SBA
Business Loans?
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Step 1: Make Sure You Qualify: Your credit score should exceed 650, and your cash flow must be consistent. Have sufficient data to support your investment plans.​
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Step 2: Gather Your Documents:
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Driver's License
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Voided business check
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Bank and credit card processing statements
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Personal and business tax returns (3 years)
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Financial statements (P&L, balance sheet, A/R, A/P reports)
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Step 3: Complete the Application: Fill out an online or one-page application and include required documentation.
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Step 4: Speak to a Representative: A representative will walk you through available options, ensuring transparency on repayment structures and fees.
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Step 5: Receive Approval: Approval typically takes 3-5 weeks. Once approved, funds are deposited within days.
​How To Apply For SBA Loans
If declined, alternative options like Business Term Loans or Business Lines of Credit may be available. Credit repair services can help improve eligibility by addressing credit issues. Over time, consistent payments on smaller loans can boost your credit score and increase your chances for SBA loan approval.
What If I'm Declined For
An SBA Loan?
​Conclusion
​SBA Loans are among the best financing options for small businesses, offering unmatched terms and borrowing limits. While the process is rigorous, the benefits far outweigh the challenges for those who qualify. By preparing thoroughly and exploring alternatives if needed, small business owners can secure the funding necessary to grow and thrive.
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