SBA Loans: Long-Term, Low-Rate Capital for Business Owners
SBA 7(a) and SBA 504 loans offer some of the most competitive terms available for business acquisition, real estate, equipment, and working capital. PeerSense connects you with the right SBA lender for your deal — and helps you structure it to close.
SBA 7(a) vs. SBA 504: Which Program Fits Your Deal?
Both programs offer long-term, low-rate financing — but they serve different purposes. Here's how to know which one applies to your situation.
SBA 7(a) — The Core Program
Used for business acquisitions, working capital, equipment, real estate, partner buyouts, and startup costs. Variable and fixed rate options available. Up to 25 years for real estate, 10 years for working capital.
Why it's powerful:
Lower down payment requirements, longer terms, and government guarantee reduces lender risk — making approval more accessible.
SBA MARC Loan — Made in America
The SBA's first program exclusively for manufacturers. Available to businesses with NAICS codes 31-33 (manufacturing). Can be structured as a term loan (up to 10 years) or revolving line of credit (up to 20 years).
Why it's powerful:
Works alongside existing 7(a) and 504 loans — not a replacement. Designed for working capital: inventory, new projects, scaling production. If you're a manufacturer, this is the most important new financing tool available right now.
SBA 504 — Fixed Assets and Real Estate
Best for purchasing or constructing buildings, buying heavy equipment with 10+ year useful life. Structure: bank covers 50%, SBA-backed CDC covers 40%, borrower puts in 10%.
Why it's powerful:
Fixed long-term rates (typically 5-7%), 20–25 year terms. Powerful for manufacturers buying their own facility. Up to $5.5M for manufacturers and green energy projects.
SBA Working Capital Pilot (WCP)
Pilot program running through July 2027. Monitored revolving lines of credit designed for growing businesses with short-term capital needs.
Why it's powerful:
Combines the best features of existing SBA line-of-credit programs with more flexible terms and faster access to capital.
SBA CAPLines
Umbrella program for cyclical working capital: Seasonal CAPLine, Contract CAPLine, Builders CAPLine, Working CAPLine. Max 10-year maturity (Builders CAPLine: 60 months plus construction time).
Why it's powerful:
Designed specifically for businesses with seasonal or contract-based revenue cycles. Provides flexible access to capital when you need it most.
USDA B&I
For rural markets under 50,000 population. Up to 90% loan-to-cost. 30-year terms available.
Why it's powerful:
Often overlooked — PeerSense has direct access to USDA B&I specialists. Excellent option for businesses in eligible rural areas with favorable terms.
Why Use an Advisor Instead of Going Directly to a Bank?
Why SBA loans are the preferred choice for business financing
Not All SBA Lenders Are Equal
Some specialize in acquisitions, some in manufacturing, some in franchises. We know which lenders move fast and which ones stall — and we match you before you waste time on the wrong application.
Structuring Matters
Seller notes, equity injection, CAPLines combinations can dramatically change your deal economics. We help you structure it right from the start.
We Know Which Lenders Move Fast
Speed matters in acquisitions and time-sensitive deals. We know which lenders close in 30 days and which ones take 90. We point you to the right one.
We Don't Charge You
We're paid by the lender at closing. No upfront fees, no retainers. If your deal doesn't close, you don't pay us anything.
Do I Qualify for an SBA Loan?
Basic requirements for SBA loan eligibility
Most SBA lenders want to see a personal credit score of 650+. Higher scores unlock better terms and faster approvals. Below 650 doesn't automatically disqualify you — but it requires stronger financials and collateral to compensate.
Yes — lenders need to see that your business generates enough cash flow to repay the loan. Two years of tax returns and financial statements are standard. Newer businesses can still qualify with strong personal credit, a compelling business plan, and collateral.
It depends on the loan size and program. For loans over $50K, lenders will typically take available business and personal assets as collateral — but lack of collateral alone won't disqualify you if the overall profile is strong.
SBA loans are specifically designed for businesses that cannot obtain financing on reasonable terms elsewhere. If a bank said no, SBA may be your best next step.
Nonprofits, real estate investment firms, lenders, religious organizations, and businesses engaged in marijuana or hemp products are generally ineligible. Most operating for‑profit businesses qualify.
Effective March 1, 2026, the SBA requires 100% of direct and indirect owners of a small business loan applicant to be U.S. citizens or U.S. nationals, with their principal residence in the United States. Legal permanent residents (green card holders) are no longer eligible for SBA 7(a) or 504 loans. All owners must maintain their principal residence in the United States, its territories, or possessions. Lenders must verify citizenship status before loan approval.
Preferred SBA lenders can close in 30‑60 days on clean deals. Complex acquisitions or construction projects may take longer. The fastest path is coming in prepared — PeerSense helps you do that before your first lender call.
Estimate Your SBA Loan Payment
Use our free calculator to see monthly payments, total interest, and amortization schedule.
How PeerSense Works
We don't complicate this. Four steps. Clear path. Right lender.
Tell Us Your Goal
What are you trying to accomplish? Acquisition, expansion, equipment, real estate, working capital? We start by understanding your objective — not pushing a product.
We Match You to the Right Program
Based on your business profile, financials, and timeline, we identify which SBA program fits best — and which lenders in our network move fastest on deals like yours.
We Connect You Directly
PeerSense introduces you to the lender. From there, you work directly with them through underwriting, approval, and closing. We stay available if you need guidance along the way.
You Close and Move Forward
Once funded, you execute your plan. PeerSense doesn't take a cut of your loan or charge hidden fees. We get paid by our lending partners — your focus stays on growing your business.
New SBA Citizenship & Ownership Requirements
Understanding SBA citizenship and residency requirements
100% U.S. Citizenship Required
Every direct and indirect owner of the applicant business must be a U.S. citizen or U.S. national. No exceptions — even minority stakeholders.
Green Card Holders Are Ineligible
Lawful Permanent Residents (LPRs) can no longer hold any ownership interest in a business applying for SBA 7(a) or 504 loans.
U.S. Principal Residence Required
All owners must maintain their principal residence in the United States, its territories, or possessions at the time of application.
Applies to All Entities
These requirements apply to the applicant business, operating companies, and any eligible passive companies involved in the loan structure.
Lender Verification Mandatory
Lenders must verify citizenship status and confirm no ineligibility exists for any owner before loan approval can proceed.
Effective Date: March 1, 2026
These rules take effect on March 1, 2026. Applications submitted before this date may still be processed under prior eligibility standards.
Quick Eligibility Checklist
All boxes must be checked for SBA 7(a) or 504 eligibility under the new rules
SBA Programs for U.S. Manufacturers
Special SBA programs designed specifically for U.S. manufacturers
MARC Loan Program
Up to $5M revolving working capital exclusively for manufacturers (NAICS 31-33)
SBA 7(a) for Manufacturing
Up to $5M for equipment, working capital, real estate, and business acquisitions
SBA 504 for Manufacturing
Up to $5.5M for buildings and heavy equipment with 10% down payment
Complete Manufacturing Capital Guide
PeerSense has created the most comprehensive guide to manufacturing business loans — covering SBA programs, equipment financing, working capital, commercial real estate, and USDA B&I loans for rural manufacturers.
View Manufacturing Capital GuideWhen SBA Doesn't Fit
When SBA loans aren't the right fit, we have other solutions
Private Credit & Bridge Loans
When SBA timing doesn't work or the deal doesn't fit SBA boxes
Equipment Financing
All credit profiles, startup-friendly, faster than SBA
Asset-Based Lending
Revolving lines against receivables and inventory
Working Capital Loans
Fast funding for payroll, inventory, and operational gaps
Been Denied by SBA?
SBA denial doesn't mean your deal is dead. PeerSense works with 500+ capital sources — many of which specialize in deals that don't fit SBA boxes. We'll analyze your denial, identify alternative paths, and help you move forward.
Explore SBA Denial AlternativesSee If Your Deal Qualifies for SBA Financing
PeerSense connects you with the right SBA lender for your deal. One conversation. Direct introduction. No runaround.
Want to estimate payments first? Try our SBA Loan Calculator