SMALL BUSINESS ADMINISTRATION (SBA) LOANS

SBA loans are partially guaranteed by the U.S. Small Business Administration, which allows lenders to offer lower interest rates and longer repayment terms than conventional financing.

Because the government backs a portion of the loan, lenders take on less risk, making it possible to extend credit to businesses that might not qualify otherwise. SBA loans also tend to have lower down payment requirements and more flexible underwriting standards, though they require more documentation and a longer approval process.

To qualify for an SBA loan, you must own a small, for-profit business that operates within the United States or its territories. You must also be able to show that you've explored other financing options. Lenders and loan programs may have additional requirements.

The SBA defines what qualifies as a small business based on size standards that vary by industry. These standards are tied to the North American Industry Classification System (NAICS) code.

Manufacturing businesses are typically measured using employee-based thresholds, which are often around 500 employees but can be higher depending on the industry. Most non-manufacturing businesses are measured using average annual receipts, with thresholds that vary by NAICS code. You can find your NAICS code on the U.S. Census Bureau website.

The timeline for the SBA loan application process can vary depending on the complexity of your application and the specific loan program. While we strive to make the process as efficient as possible, it's important to gather all necessary documentation promptly. Our business lending team can provide you with a more detailed estimate based on your individual circumstances.

An SBA Preferred Lender is a financial institution that can approve loans without the SBA's final approval. As a member of the SBA's Preferred Lender Program, U.S. Bank can help you move through the loan process quickly and may be able to offer longer repayment terms and lower payments than other lenders.