Can Sole Proprietors Get SBA Loans? Absolutely—Here's What You Need to Know
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- Sole proprietors are fully eligible for SBA loans—the SBA does not require a specific business structure to qualify.
- Eligibility is based on key factors like time in business, credit score, revenue, and ability to repay—not your entity type.
- SBA programs such as 7(a), Microloans, and Express loans are accessible to sole proprietors with strong financials and credit.
When it comes to SBA loan eligibility, your business structure doesn’t limit your access to funding. Whether you're a sole proprietor, LLC, corporation, or partnership, the Small Business Administration (SBA) does not discriminate based on entity type. That means sole proprietors are just as eligible for SBA-backed financing as more complex legal structures—as long as they meet the core criteria.
While it’s true that sole proprietorships are often smaller and may generate less revenue than LLCs or corporations, this has no bearing on their ability to qualify. The SBA focuses on a few key factors when evaluating loan applications:
- Business performance (revenues, profitability, time in operation)
- Creditworthiness (especially personal credit for sole proprietors)
- Ability to repay the loan (based on cash flow and financials)
The SBA’s core concern is whether your business is viable, responsible, and capable of repayment—not whether it has “Inc.” at the end of its name.
To qualify for most SBA loan programs, your business must simply:
- Be for-profit
- Be based in the United States
- Fall within the SBA’s size standards (most small businesses qualify)
- Not be delinquent on any existing government debts
SBA Loan Eligibility for Sole Proprietorships
Minimum Time in Business
2 Years
Personal Credit Score
Over 660
Owner Status
US Citizen or permanent resident
Annual Revenue
Over $150,000
SBA Loan Eligibility for Sole Proprietorships
| Minimum Time in Business | 2 Years |
| Personal Credit Score | Over 660 |
| Owner Status | US Citizen or permanent resident |
| Annual Revenue | Over $150,000 |
Whether you’re just exploring your options or ready to apply, we’re here to help sole proprietors access the capital they need to grow.
✅ Check Your SBA Loan Eligibility
So if you're a sole proprietor seeking funding for equipment, working capital, or expansion, don’t hesitate to explore SBA options like the 7(a) Loan, Microloan, or SBA Express. These programs offer favorable terms, competitive rates, and access to capital that can fuel your growth—regardless of your business structure.
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