SBA 7a Loans: The SBA’s Most Popular Loan
SBA 7a loans are a desirable financing solution for established small businesses that meet the eligibility requirements.
Here’s what you need to know about the SBA 7a loan program, which 7a lenders are the top choices for small business owners like yourself, and how to build business credit in order to qualify for an SBA loan with less difficulty.
What Are SBA 7a Loans?
SBA 7a loans are a type of SBA loan that is extended to you by private lenders and partially backed by the Small Business Administration.
The SBA 7a loan program encompasses a wide range of loan types that give you the flexible options you need to fund your business.
For example, if you need working capital to be able to purchase new equipment for your business or invest in real estate, a standard 7a loan is the right choice for you.
If you need a quick loan that falls below the $5 million maximum loan amount, such as $500,000, you can get an SBA Express loan.
They also offer export loans, international trade loans, and other small loans for small businesses. You can use your loan proceeds for a wide range of business activities.
No matter whether you want an SBA Express loan for the SBA Express quick funding and cash flow support or a standard 7a loan, take care to do your research.
The SBA is not a lender, but a guarantor. An SBA guarantee is designed to support you if you do happen to default on your loans. This guarantee will vary depending on which 7a loan you choose to apply for.
The SBA will guarantee up to 75% if you get a standard 7a loan that extends over $150,000. Meanwhile, you could get up to a 90% guarantee for an international trade loan. They pay the guaranteed portion should something happen.
Take the time to research your SBA loan options so you can secure the best SBA loan program for your specific business needs.
Who Qualifies for an SBA 7a Loan?
An SBA 7a loan is a great way to fund your business. However, it’s rather difficult to qualify for, especially if you’re a new business owner and looking for an SBA loan for startups.
While the qualifications may vary depending on what type of loan you’re looking to apply for, lenders will typically approve:
- Businesses at least two years old
- Those with strong annual revenue
- Owners with a credit score of at least 690
- Those with no existing debt on a government loan
Other SBA eligibility requirements are noteworthy, too. Small businesses should expect to meet these SBA guidelines:
- Provide a personal guarantee
- Provide collateral (generally required for higher loan amounts)
- Seek out other forms of financing before applying for an SBA 7a loan
- Guarantee that they meet the definition of a small business as set forth by the SBA and ensure that they’re not an ineligible business
The qualifications for the SBA 7a loan program are stringent. However, 7a loans are still a top option for small businesses. You should work toward them if you want capped rates, longer repayment term options, and less predatory terms.
Is It Hard to Get an SBA 7a Loan?
It can be hard to get an SBA 7a loan.
Qualifying is often where most new small businesses struggle. Whether you have bad credit, not enough time in business, or don’t have the revenue to inspire confidence in various SBA lenders, these can all be challenges to securing SBA financing.
Regarding how easy it is to get funding even if you qualify, this can be challenging as well.
Between paperwork, waiting for approval, and providing collateral and personal guarantees, you can expect to actually see funding anywhere from 60 to 90 days after beginning the process.
It’s not a quick way to fund your business. However, if you don’t need rapid funding and cash flow support, it can be worth the wait.
Otherwise, you may want to consider faster funding options that you qualify for more easily, such as business credit cards or a no/low-doc commercial real estate loan.
What Are SBA 7A Loan Rates Today?
The great thing about SBA 7a loans is that there are maximum interest rates that lenders are able to charge. SBA lending offers inherent protection for borrowers.
Maximum SBA loan interest rates will decrease as the loan amount increases. For example, a fixed-rate loan of $25,000 or less will have a maximum loan rate of 15.5%.
This loan percentage will decrease by 1% with each loan size, including from $25,000 to $50,000, from $50,000 to $250,000, and for loan amounts above $250,000, for which the maximum loan rate is 12.5%.
There are also maximum variable SBA loan rates. If you have a loan amount below $50,000, the SBA maximum rate is 14%. For $50,000 to $250,000, $250,000 to $350,000, and loans above $350,000, the rates are 13.5%, 12%, and 10.5%, respectively.
How Much Do You Have to Put Down on an SBA 7a Loan?
As with many other requirements associated with SBA 7a loans, the amount that you’d have to put down on your loan will depend on the lender, the loan type, and your creditworthiness.
That being said, the average down payment tends to fall anywhere between 0 and 10%, depending on who you ask.
Some recommend 10 to 20%, while others offer much higher recommendations, like 30%.
Obviously, a higher down payment is going to grant you better 7a loan terms and help you qualify for the loan you want with greater ease.
Best SBA 7a Loan Options
With the above in mind, where do you secure an SBA 7a loan? Which lenders does the average borrower go to? Here are some of the top SBA 7a lenders to consider if you’re interested in the 7a loan program.
Live Oak Bank
Live Oak Bank is a North Carolina-based bank that offers online SBA 7a loans to small businesses across the U.S.
With Live Oak, you can receive 7a loans with a maximum loan amount of up to $5 million with up to 90% bank financing or higher.
There are no hard credit inquiries, and it’s been reported that they have a low credit score minimum of around 650. This is great if you struggle to meet the SBA loan credit score requirements of other lenders.
The only noteworthy downside of this SBA lender is that they don’t state their interest rates outright.
Huntington Bank
Huntington Bank has been the number one lender of SBA loans for the past seven years.
Huntington Bank offers SBA 7a loans of up to $5 million with as little as 10% down.
Where Huntington Bank stands out is with its expert support with financial assistance. You receive specialized SBA assistance from SBA experts, ensuring that they understand your small business goals and needs to provide the best possible financing solutions.
They’re also an SBA preferred lender. Preferred lenders can approve your loan application for you rather than requiring you to wait for an SBA review and SBA approval. If you’re looking for quicker funding, they can help.
Celtic Bank
While Celtic Bank isn’t the most well-known on this list, it has quickly risen to become one of the top lenders in 2025, approving over $500 million in SBA loans so far.
As described on their website, their SBA 7a loans are defined by:
- Funding as high as $5 million
- Payback terms are as long as 25 years
- Up to 90% loan-to-value
- The absence of balloon payments
- Low rates, which can reach as low as prime plus 2.75%
They provide a handy SBA loan calculator on their website that will help you see your estimated monthly payments and one-time fees, estimated down payment, and SBA fees for your small business loan.
Ready Capital
Ready Capital is a top-five lender that offers financing to small business owners in all 50 states.
They boast nearly all of the same benefits that we’ve covered in the above lenders thus far, including loan terms, maximum loan amount, and broad use of funds.
Ready Capital doesn’t feature any prepayment penalties and may allow you to finance closing costs, should you be looking to purchase commercial real estate.
They’re known for their simple application process and flexible, speedy funding.
Qualify for More SBA Loans with Credit Suite
Your credit score can be a major barrier to business financing. If financing solutions like SBA 7a loans are currently out of your reach, you can start qualifying for more SBA loans with the support of Credit Suite.
Credit Suite’s Fundability System is a program that helps small business owners like you:
- Understand what lenders, credit issuers, and other financing solution providers are looking for when you apply for funding.
- Identify issues in your own business that are preventing you from getting approved for funding.
- Reduce financing troubles with step-by-step guidance to fix these issues so that you can start eliminating obstacles standing in the way of funding.
- Build business credit by getting pre-qualified for credit cards, loans, and other funding/credit solutions using our extensive database of opportunities and providers.
- And get a host of other features and support that will prove invaluable in your business funding and business credit-building journey.
Unlock your small business’s full potential today.
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