“SBA loan” is really an umbrella for several programs. Most small businesses use one of the first two below, but it helps to know the full menu.
7(a) loans
The flagship and most flexible program. A 7(a) loan can fund working capital, equipment, inventory, refinancing, or buying a business. It is the one most people mean by “SBA loan.” See how SBA loans work.
504 loans
Built for big, long-lived assets: owner-occupied commercial real estate and heavy equipment. A 504 loan pairs a bank, a Certified Development Company, and the SBA, with a low down payment and a long fixed rate. See the 504 loan explained.
Microloans
SBA microloans go up to $50,000 and are made through nonprofit intermediary lenders. They suit startups and smaller working-capital or equipment needs that a bank might consider too small.
SBA Express
A faster-turnaround option with a smaller maximum (up to $500,000) and a reduced SBA guarantee. The trade-off is speed for size, which can suit a quick working-capital need.
CAPLines
A set of 7(a) lines of credit designed for working capital and seasonal or contract-based needs, rather than a one-time term loan.
Export loans
Programs aimed at businesses that export, including export working capital and international trade loans.
Disaster loans
Unlike the programs above, SBA disaster loans are made directly by the SBA to help businesses and homeowners recover from declared disasters. They are a different track from 7(a) and 504.
Which type fits?
For most owners it comes down to 7(a) versus 504. The eligibility and program checker recommends one based on your use of funds, and our 504 vs 7(a) comparison shows how they differ in the data. Program details follow the current SBA SOP, so confirm specifics with a participating lender.