The Top SBA Programs, for Sole Proprietors
- SBA Express Loan – Fast approval (within 36 hours), up to $350K, ideal for quick access to working capital but with higher interest rates and shorter terms (7-10 years).
- SBA 7(a) Loan – Offers up to $5 million for real estate, equipment, or working capital with longer repayment terms (up to 25 years) but stricter eligibility requirements.
- SBA Microloan & 504 Loan – Microloans (up to $50K) help startups and small expansions, while 504 loans (up to $5 million) are best for real estate purchases with low interest rates.
Managing and financing a business as a proprietor can be quite challenging. Thankfully there are SBA loan programs that can provide financial support.. How do you determine which program is the suitable for your sole proprietorship? Lets delve into some of the leading SBA loan options.
SBA Express Loan
The SBA Express loan allows sole proprietors to swiftly access capital of up to $350,000. These loans boast an application process and funds are often received within 36 hours of approval. However it's important to note that these loans come with interest rates and shorter repayment terms ranging from 7 to 10 years. Nevertheless if you require working capital the Express loan can be a lifeline.
SBA 7(a) Loan
The standard 7(a) loan offered by the SBA is their program providing loan amounts of up to $5 million with repayment terms extending up to 25 years. As a proprietor this financing option can be utilized for purposes including real estate investment, equipment acquisition, inventory management, working capital infusion and more. While the requirements for this type of loan are more stringent compared to the Express loan option it's definitely worth exploring.
SBA Microloan
For proprietors seeking to initiate or expand their businesses microloans ranging up to $50,000 can offer an excellent solution. The application process for these loans is manageable. Allows you to work directly with lenders, within your community. You can utilize funds, for purposes such as purchasing inventory, supplies, furniture, machinery promoting your business and covering day to day expenses.
SBA 504 Loan
If you are a proprietor looking to buy real estate the 504 loan is designed specifically for this purpose. It offers up to $5 million for real estate purchases. Requires a 10% down payment from you. The loan term ranges from 10 to 20 years. The interest rate is lower than financing options.
As a proprietor it is crucial to have access to capital that you can qualify for independently. SBA loans expand your funding choices whether you require working capital injections or long term financing, for estate or other assets. Consult with an SBA specialist to discuss your business goals and determine the suitable program.
