SBA Loan
An SBA loan gives small businesses access to low rates, flexible terms, and lower down payments. It’s a practical way to fund growth, expansion, or a real estate purchase—without the pressure of traditional lending.
What is an SBA loan?
An SBA loan is a small business loan that’s partially backed by the U.S. Small Business Administration. The SBA doesn’t lend money directly—it guarantees part of the loan issued by a private lender.
This guarantee lowers risk for lenders and helps business owners qualify with fewer barriers. These loans are great for working capital, equipment, or commercial property.
How SBA loans work
SBA loans follow a standard process. You work with an SBA-approved lender who reviews your business, financials, and how you plan to use the funds.
Once approved, the lender gives you the money. The SBA steps in only if there’s a default. This backing helps lenders say yes more often.
Loan terms can range from 5 to 25 years. You’ll find competitive rates and more flexibility than most traditional loans.
How SBA loans work
SBA loans follow a standard process. You work with an SBA-approved lender who reviews your business, financials, and how you plan to use the funds.
Once approved, the lender gives you the money. The SBA steps in only if there’s a default. This backing helps lenders say yes more often.
Loan terms can range from 5 to 25 years. You’ll find competitive rates and more flexibility than most traditional loans.
Self-employed or growing fast?
ALT Financial can help you access an SBA small business loan that fits your goals. No confusing paperwork—just real answers and dedicated support.
SBA loans for women
Many women-owned businesses turn to SBA loans for support. While the core programs are the same, some lenders and SBA resource partners offer added guidance.
These programs are designed to help with business planning, application assistance, and long-term strategy. It’s a valuable step for entrepreneurs looking to grow on their own terms.
If you’re a woman running your own business, an SBA loan could help you move forward.
SBA Loans and Commercial Real Estate Mortgages
If you’re using an SBA loan to purchase or refinance business property, you may also qualify for a commercial real estate mortgage. These loans are designed for owner-occupied spaces and long-term property investments.
Many SBA 504 and 7(a) programs can be used for real estate, but depending on the loan amount and structure, combining an SBA loan with a CRE mortgage may offer added flexibility. This is especially useful for expanding locations, building out new spaces, or reducing monthly overhead through ownership.
Our team helps you understand how SBA financing and commercial real estate mortgage options can work together—so you get the right setup from day one.
SBA Loans and Commercial Real Estate Mortgages
If you’re using an SBA loan to purchase or refinance business property, you may also qualify for a commercial real estate mortgage. These loans are designed for owner-occupied spaces and long-term property investments.
Many SBA 504 and 7(a) programs can be used for real estate, but depending on the loan amount and structure, combining an SBA loan with a CRE mortgage may offer added flexibility. This is especially useful for expanding locations, building out new spaces, or reducing monthly overhead through ownership.
Our team helps you understand how SBA financing and commercial real estate mortgage options can work together—so you get the right setup from day one.
How to apply for SBA loan
You don’t need to guess your way through the SBA loan process. Here’s how to apply:
Step 1: Talk to an SBA Loan Lender or Trusted Refinance Broker: Start by connecting with a professional who understands SBA lending. They’ll review your business goals and recommend the right SBA loan program.
Step 2: Collect Your Business Documents: Gather essential paperwork like financial statements, recent tax returns, and a clear outline of how you plan to use the funds.
Step 3: Submit the Application: Your lender or broker will help you complete the required SBA forms and ensure all supporting documents are in order.
Step 4: Wait for Review: SBA loans take longer to process than other financing options. Stay patient—the lower rates and longer terms are often worth it.
Step 5: Finalize Terms and Receive Funding: Once approved, your loan is funded and a repayment schedule is established. You’re now ready to put those funds to work.By working with a knowledgeable SBA loan expert, you’ll stay informed and supported from start to finish.
Types of SBA business loans
There’s more than one kind of SBA loan. Each type fits different needs and business stages.
- SBA 7(a) Loan: Ideal for general business purposes like working capital, buying inventory, refinancing debt, or purchasing equipment. Offers flexible use and longer repayment terms.
- SBA 504 Loan: Best for large fixed-asset purchases like commercial property, machinery, or construction. A strong option for businesses planning a commercial real estate mortgage.
- SBA Microloan: Designed for smaller funding needs—usually under $50,000. Great for startups or businesses with limited borrowing history needing capital for supplies or short-term needs.
Choosing the right SBA business loan starts with understanding your goals. Our team helps you find the best fit and guides you every step of the way.
Ready to finance your next big move?
ALT Financial Network helps you access SBA business loans with expert guidance and full support.
Let’s find the funding your business needs—on terms that make sense for you.
Pros and cons of SBA small business loan
SBA loans offer real advantages, especially for small businesses that need more time or flexibility. But like any loan, they come with trade-offs that are worth considering.
Pros:
- Low interest rates: SBA loans are known for offering rates that beat most conventional loans.
- Long repayment terms: You can repay over 10 to 25 years, depending on how you use the funds.
- Lower down payments: Some programs require as little as 10% down, which preserves your cash flow.
- Flexible uses: Funds can go toward working capital, equipment, debt consolidation, or real estate.
Cons:
- More paperwork: SBA loans require thorough documentation, including financials, tax returns, and business plans.
- Slower approval times: Compared to conventional loans, SBA approvals often take longer due to extra review steps.
- Eligibility standards: You must meet SBA criteria, including size, location, and use of funds.
The good news? You don’t have to figure it out alone. At ALT Financial, we break it all down for you—so you know exactly what to expect before applying.
SBA loan vs traditional business loan
SBA loans are easier to qualify for than many traditional business loans. That’s because of the SBA’s backing.
With a traditional loan, you’ll likely need stronger credit, more collateral, and a bigger down payment. SBA loans offer more access, especially for newer businesses.
| Category | SBA Loan | Traditional Loan |
|---|---|---|
| Approval Risk | Shared by lender and SBA | Fully on lender |
| Down Payment | Often 10% | Can be 20% or more |
| Terms | Longer (up to 25 years) | Shorter terms |
| Rates | Competitive, often lower | Depends on credit and lender |
| Best For | Growing or new small businesses | Established businesses with strong credit |
Why choose ALT Financial Network
We know SBA loans inside and out. At ALT Financial, we work with SBA-approved lenders and support you from start to finish.
Whether you’re funding new equipment or tackling a commercial real estate mortgage, we’re here to help. We also act as a refinance broker for clients looking to lower costs or access better terms.
Our goal is simple: make financing easier, faster, and clearer—so you can keep building your business.