SBA loans in 2026: 7(a), 504 and microloans

The U.S. Small Business Administration doesn't make most of these loans itself. It guarantees part of each loan to an approved lender, which lets the lender offer longer terms than it otherwise would. You apply to the lender, you borrow from the lender, and the lender decides.

This guide covers the three programs owners ask about most, using figures published on sba.gov as of October 2026. SBA changed several rules in 2025 and 2026, so check the date on anything else you read.

The three programs side by side

Program	7(a)	504	Microloan
Maximum	$5 million	$5.5 million for the SBA-backed portion	$50,000
Who lends	SBA-approved lenders	A private lender plus a Certified Development Company (CDC)	Nonprofit intermediary lenders
Term	Generally up to 10 years; up to 25 for real estate	10, 20 or 25 years	Up to 7 years
Common uses	Working capital, equipment, buying a business, real estate, refinancing	Buildings, land, long-life equipment	Inventory, supplies, equipment, working capital

SBA 7(a) loans

7(a) is the general-purpose program. The figures that matter:

• Maximum: $5 million. Loans up to $350,000 follow the 7(a) Small rules. SBA Express loans go up to $500,000 and let the lender make more of the decision.
• Guaranty: SBA guarantees 85% of loans of $150,000 or less and 75% of larger loans. SBA Express loans carry a 50% guaranty.
• Term: generally up to 10 years, or up to 25 years when the loan buys real estate.
• Rate: set by the lender, within SBA maximums.
• Collateral: generally not required for loans of $50,000 or less. On larger loans, lenders take available business assets. Owners of 20% or more give personal guarantees.

For variable-rate 7(a) loans, the maximum rate is the base rate plus a spread that shrinks as the loan gets bigger:

Loan amount	Maximum variable rate
$50,000 or less	Base rate + 6.5%
$50,001 to $250,000	Base rate + 6.0%
$250,001 to $350,000	Base rate + 4.5%
Over $350,000	Base rate + 3.0%

The base rate is commonly the prime rate. Fixed-rate loans have their own caps. These are ceilings, not the rate you'll be offered.

SBA 504 loans

504 loans pay for buildings, land and major equipment with a long useful life. A typical project is split three ways: a private lender finances about half, a CDC finances up to 40% with an SBA-backed loan, and you put in at least 10%. New businesses and special-purpose buildings can require more.

• The CDC portion can be up to $5.5 million.
• Terms are 10, 20 or 25 years.
• 504 can't pay for working capital or inventory.

Since July 4, 2026, one business can have up to $10 million in combined 7(a) and 504 financing.

SBA microloans

• Up to $50,000, repaid over up to 7 years.
• Made through nonprofit intermediary lenders, which set their own credit rules and often offer training alongside the loan.
• Can't buy real estate or pay off existing debt.

Who qualifies

SBA sets program rules; lenders add their own. In general the business must:

• operate for profit in the U.S. and meet SBA's size standard for its industry;
• show it can repay from cash flow;
• be unable to get similar credit elsewhere on reasonable terms;
• have owners put in their own equity where the rules require it, for example at least 10% for startups and business purchases.

Two changes took effect on March 1, 2026:

• Ownership. Every direct and indirect owner must be a U.S. citizen or U.S. national whose principal residence is in the U.S. Lawful permanent residents are no longer eligible owners.
• Credit scoring. SBA stopped screening FICO SBSS scores for 7(a) Small loans. Lenders use their own credit analysis and must show debt service coverage of at least 1.1 to 1.

SBA doesn't set a minimum personal credit score; lenders set their own. The 2026 SBA changes guide covers both rules in more detail.

Documents lenders usually ask for

• Business and personal tax returns, usually for two years (some lenders ask for three)
• A year-to-date profit and loss statement and balance sheet
• Recent business bank statements
• SBA Form 1919 (borrower information) and SBA Form 413 (personal financial statement)
• A schedule of current business debts
• Formation documents, licenses and ID for each owner
• Proof of each owner's citizenship

The documents checklist by financing type groups these by product so you can print one list.

How long it takes

Often 30 to 90 days from a complete application, depending on the lender and the program. Lenders with delegated authority, and SBA Express loans, can move faster because the lender makes more of the decision itself.

When an SBA loan fits

An SBA 7(a) loan suits an established business that can wait several weeks, can document its cash flow and wants a longer term than a conventional loan offers. If you need money within days, compare a business line of credit first. For amounts, rules and sources on one page, see how SBA 7(a) loans work.

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