SBA Loans
Government-backed Small Business Administration loans with favorable terms, lower down payments, and competitive rates for qualified businesses.
Key Details
Interest Rates
Rates are typically Prime Rate + 1.5% to 3.75%, depending on loan size and term
Repayment Terms
7-10 years for working capital, up to 25 years for real estate
Quick Approval
For qualified applicants
Eligibility Criteria
- For-profit business operating in the United States
- Owner has invested equity (time or money) in the business
- Business meets SBA size standards for small business
- Unable to obtain financing through conventional lending channels
- Demonstrated ability to repay the loan from business cash flow
- No delinquencies on existing government loans
- Owner(s) must have acceptable personal credit (typically 650+)
Important Note
Meeting the eligibility criteria does not guarantee loan approval. Each application is evaluated on a case-by-case basis, considering multiple factors including credit history, business performance, and market conditions.
Associated Fees
| Fee Type | Description |
|---|---|
| Guarantee Fee | 2% to 3.75% of the guaranteed portion of the loan (can be financed) |
| Packaging Fee | $2,000 - $5,000, depending on loan complexity and size |
| Appraisal Fee | $2,000 - $5,000 for commercial real estate (if applicable) |
| SBA Service Fee | 0.55% annually on the guaranteed portion of the outstanding balance |
| Documentation Fee | $500 - $1,000 |
Additional fees may apply based on specific circumstances. Please consult with your Fargin Capital advisor for a complete breakdown of all potential costs associated with your loan.
Key Benefits
Lower down payment requirements (as low as 10% for some programs)
Longer repayment terms than conventional loans
No balloon payments
Competitive interest rates with caps set by the SBA
Access to capital when conventional financing isn't available
Multiple loan programs to meet different business needs (7(a), 504, Express)
Potential to finance soft costs like working capital alongside hard assets
Dedicated SBA loan specialists to guide you through the process
Frequently Asked Questions
What types of SBA loans do you offer?
We offer several SBA loan programs including: 7(a) loans, the most common program for general business purposes; 504 loans, designed specifically for major fixed asset purchases like real estate or equipment; SBA Express loans for faster processing on smaller loan amounts; and specialized programs like Export Working Capital loans and Microloans.
How long does the SBA loan process take?
The SBA loan process typically takes 45-90 days from application to funding. SBA Express loans can be processed more quickly, often within 30 days. The timeline depends on how quickly you provide required documentation, the complexity of your business, and current SBA processing volumes.
What can I use an SBA loan for?
SBA loans can be used for a wide range of business purposes including: purchasing commercial real estate, acquiring an existing business, buying equipment, refinancing existing business debt, renovating facilities, and providing working capital for expansion or operations. Some restrictions apply to specific programs.
Do I need collateral for an SBA loan?
The SBA requires collateral when it's available, but loans won't be declined solely for lack of collateral. For loans under $25,000, no collateral is required. For larger loans, the SBA typically requires a lien on business assets and may require personal real estate as collateral for larger loans when available.
What makes SBA loans different from conventional business loans?
SBA loans are partially guaranteed by the U.S. Small Business Administration, which reduces risk for lenders and allows them to offer more favorable terms. Compared to conventional loans, SBA loans typically feature lower down payments (10-20% vs. 20-30%), longer repayment terms, no balloon payments, and competitive interest rates. They're designed for businesses that might not qualify for conventional financing.
Ready to Get Started?
Our team of experienced loan advisors is ready to help you secure the financing you need for your business.