Skip to content

SBADecoded

Home / Guides

Guides

SBA borrower guides

Plain, accurate answers to the decisions that actually stall SBA borrowers — how much to put down, what credit clears, whether your house is on the line, which loan fits your industry. Every guide follows the current rulebook (SOP 50 10 8), ties to a calculator, and connects to what the loan record actually shows.

Money & terms

SBA loan down payment requirements

How much cash you really need — 10% for most 7(a) deals, 10–20% for 504, and how a seller note covers part of it.

SBA equity injection rules: what counts, and what doesn’t

What actually counts as injection — cash, gifts, standby seller debt — how much is required, and how lenders verify it.

Seller financing on an SBA acquisition

When a seller note counts toward your equity, the full-standby rule, and how much of the deal the seller can carry.

How much can you borrow with an SBA loan?

The $5M ceiling — and why your cash flow, not the ceiling, is what actually caps the amount you get.

Refinancing business debt with an SBA loan

Refinancing existing debt into a 7(a) — the substantial-benefit test, what qualifies, and when it pays off.

Requirements

SBA personal guarantee rules

Who has to sign, what an unlimited guarantee actually means, when a spouse is pulled in, and whether your house is on the line.

SBA loan credit score requirements

No official minimum FICO — but there is a screening score and hard red lines. What lenders actually check.

SBA loan collateral rules

What collateral is required, the $50k threshold, when your home is pledged, and why a shortfall alone won’t sink a strong file.

SBA loan requirements

The real eligibility bar — size standards, the credit-elsewhere test, owner equity, and what disqualifies you.

Process & cost

SBA loan closing costs

The guaranty fee, packaging, third-party reports and closing charges — what each runs, and what you can roll into the loan.

SBA loan rates and maximum spreads

How rates are set, the maximum spread over prime a lender can charge by loan size, and what borrowers actually pay.

SBA loan approval timeline

How long approval and closing really take, and why your lender’s authority — not the SBA — sets the pace.

SBA 7(a) versus 504: which loan fits

What each program funds, the rate and down-payment differences, and what the default data really says about “safer.”

SBA loan prepayment penalty

The 15-year rule and 5/3/1 schedule on 7(a), the 504 premium, and when you can prepay for free.

SBA loan repayment terms

Up to 25 years for real estate, 10 for equipment and working capital, and why there are never balloons.

Use cases

SBA loan for a startup

The higher injection, why experience and projections carry the file, and how to find lenders that actually fund startups.

SBA loan for buying a business

Financing an acquisition — the injection, seller notes, the valuation, and what underwriters actually look for.

SBA loan for commercial real estate

Buying owner-occupied property — the 51% occupancy rule, 7(a) vs 504, down payment and long fixed terms.

SBA loan for a restaurant

How restaurants really fare — the higher default rate, what lenders want, and who funds food-service deals.

SBA loan for a laundromat

Why lenders like laundromat cash flow, the special-purpose property angle, and whether to use 7(a) or 504.

SBA loan for a gas station

The special-purpose down payment, the required environmental review, and why 504 is so common for fuel sites.

SBA loan for a franchise

The Franchise Directory rule, why brands underwrite easily, and what the default data says brand-by-brand.

SBA loan for a partner buyout

Buying out a partner with a 7(a) — the change-of-ownership rules, the 100%-ownership outcome, and equity.

SBA loan for a hotel or motel

Financing hospitality — the special-purpose down payment, why 504 fits, and what the hotel loan data shows.

SBA loan for a daycare

Financing a child-care center — licensing, real estate, steady demand, and what the daycare loan data shows.

SBA loan for an auto repair shop

Financing a repair shop — equipment, real estate, environmental notes, and what the auto-repair data shows.

SBA loan for working capital

A 7(a) term loan vs. a CAPLines revolving line — what working capital covers, the terms, and how much you can get.

Situations

SBA loan after bankruptcy

When a past bankruptcy stops an SBA loan, the seasoning lenders want, and how to present the story.

SBA loan with tax debt

Getting an SBA loan while you owe the IRS — the payment-plan path, tax liens, and when federal debt blocks the file.

SBA loan with an existing merchant cash advance

Whether the SBA can refinance a merchant cash advance, why stacking is a red flag, and how to present it.