SBA Loan

Interest Rates

4.75% - 7.00%*

SBA Loan Amounts

$30,000 - $5 million

Repayment Terms

10 - 25 years

Growing a small business is not an easy task. In addition to managing daily operations, business owners have to think about ways to expand their customer or user base or bring more products and services to market. With the limited cash reserves many small businesses have on hand, this task can feel impossible. 

However, there are debt financing programs out there that allow small businesses to get capital for maintenance or growth faster than a standard bank application. SBA loans can get money into a business’s wallet faster thanks to a partnership between the federal government and banks.

What Are SBA Loans?

SBA loans are a category of loans that come with guarantees from the Small Business Administration (SBA). The SBA works with lenders to help small businesses receive loans faster and more easily than if the small business sought out financing on their own. 

Part of how the SBA speeds up the process is by guaranteeing up to 85% of the loaned amount to the lender. However, the SBA can then look to the business’s assets or cash reserves as a way to pay back any defaults the business has on the loan.

What Is the SBA?

The Small Business Administration (SBA) is a federal government agency dedicated to assisting small businesses. Founded in 1953, the administration works with small businesses on financing, counseling, and locating talent or expertise to help small businesses grow. 

Businesses looking to expand their efforts internationally can also use SBA resources such as their various talent and resource agencies. 

The SBA receives its funding through tax revenue allocated by Congress. Federal income taxes help fund the SBA and its various programs, allowing taxpayers to benefit without direct payments to the administration.

Benefits of SBA Loans

While debt can be a risk for businesses, there are benefits to taking out an SBA loan over other business loans. Some of those benefits include: 

  • Funds can be used for multiple business expenses, including expansion, maintenance, and improving business-related real estate
  • Loans are federally backed, helping lenders feel safer in loaning out higher amounts with lower down payments and interest rates.
  • Injecting capital into a small business is an easy way to see faster growth for your business. 
  • Loans are long-term, giving business owners plenty of time to repay loans once their business revenue grows.

Types of SBA Loans

Not all loans offered by the SBA are the same. There are five major types of SBA loans:

  • SBA 7(a): Loans dedicated to helping businesses with working capital, equipment, and expansion-related expenses. 
  • SBA 504: Another high-principal loan dedicated to purchasing fixed assets such as land or heavy machinery.
  • SBA Microloan: While a business can only receive up to $50,000 with this loan, it allows the company to fund low-cost equipment and inventory expenses. 
  • SBA Disaster Loan: Businesses harmed by declared disasters can take out this loan to help with recovery and rebuilding efforts after the disaster passes. 
  • SBA CAPLine: As a line-of-credit loan, businesses can use these loans to pay for short-term expenses and apply for them on an as-needed basis.  


Out of these loan options, the 7(a) and 504 loan types are the SBA’s most popular. These loan types give large injections of capital into a business to reinvest into growth or expand internal capabilities. 

SBA loan requirements

Various small businesses from a broad range of industries can successfully apply for an SBA 7(a) loan. Rather than listing what businesses we consider for approval, below you will find a list of businesses we exclude.

Excluded Businesses
  • Gambling
  • Life insurance
  • Religious teaching
  • Primarily political & lobbying activities
  • Oil wildcatting
  • Mining
  • Mortgage servicing
  • Real estate development
  • Bail bond
  • Pawn or private clubs

SBA eligibility requirements

If your business does not fall under one of the above excluded categories, the next step is to meet the following common eligibility requirements for an SBA loan from banks in the KefCapital network.

$30,000 to $350,000 SBA 7(a)

Working Capital or Debt Refinance

$500,000 to $5 million SBA 7(a)

Commercial Real Estate

  • Time in business must be above 2 years
  • Business owner’s personal credit score must be above 650
  • Business must be U.S. based and owned by US citizen or lawful permanent resident who is at least 21-years old
  • No outstanding tax liens
  • No bankruptcies or foreclosures in the past 3 years
  • No recent charge-offs or settlements
  • Current on government-related loans
  • Time in business must be above 2 years
  • The business owner’s personal credit score must be above 675
  • The real estate must be majority owner-occupied, i.e. at least 51% of the square footage of the property you’re buying must be occupied by and used by your business
  • Sufficient business and personal cash flow to service all debt payments, demonstrated by 3 years of tax returns and interim financial data
  • No delinquencies and/or defaults on government loans

Typically, businesses approved for an SBA loan from banks that participate in the KefCapital lending network have $50,000 to $5 million in annual revenues and 1 – 40 employees. Most businesses are profitable and have a positive cash flow. Also can provide proof that they are able to make the monthly loan payment.

SBA 7(a) Loan - uses of proceeds

Depending on the amount you want to borrow, you can use the funds from an SBA 7(a) loan for a variety of purposes like but not limited to refinancing high-cost debt, hiring, inventory, marketing, or purchasing commercial real estate.

Debt Refinancing / Working Capital

$30,000 - $350,000

Commercial Real Estate

$500,000 - $5 million

Loans of this amount can be used for working capital, new equipment purchases, and refinancing existing business debt not secured by real estate (such as cash advances, business loans, and equipment leases) and subject to the original use of proceeds from the business debt.

Loans of this amount can be used for the purchase or refinance of commercial real estate that is 51% owner-occupied.

SBA loans are the best deal going

Banks in the KefCapital network offer the gold standard for business owners who want to build their small business.

Finance With KEF Capital

Applying for an SBA loan takes time and effort due to the documentation business owners have to bring to the table. KEF Capital works with business owners to speed up the application process and make getting SBA loans easier

If you are a business owner looking to boost their small business, review our SBA application process and reach out to us if you have any questions!

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Applying is free and will not affect your credit score