SBA loans explained: 7(a), 504, Express and microloans (2026)
Edited by Moe Ameen · Published
SBA loans come from banks and other lenders, not from the SBA directly. The 7(a) loan is the main program, up to $5 million for working capital, equipment, real estate or refinancing. The 504 loan covers major fixed assets up to $5 million, or $5.5 million for small manufacturers, and microloans go up to $50,000 through nonprofit lenders. The SBA doesn't publish a minimum personal credit score.
Key takeaways
- 7(a) loans go up to $5 million; 504 loans up to $5 million, or $5.5 million for small manufacturers; microloans up to $50,000.
- The SBA backs part of a 7(a) loan: up to 85% on loans of $150,000 or less.
- Owners with 20% or more of the business must sign a full personal guaranty.
- Lender Match is the SBA's own tool for finding a participating lender.
How do SBA loans work?
A lender makes the loan and the SBA backs part of it, so the lender carries less risk. You apply with the lender, not the SBA.
For 7(a) loans, the SBA covers up to 85% of loans of $150,000 or less and up to 75% of larger ones; for SBA Express it's 50% [2]. Microloans work differently: the SBA funds nonprofit community lenders, and they make the loans [4].
What can a 7(a) loan be used for?
Working capital, equipment, buying or improving real estate, and refinancing business debt, up to $5 million.
Real estate loans can run up to 25 years, and working capital loans 10 years or less [1][3]. To be eligible, the business must operate for profit in the US, fit SBA size standards, be creditworthy with a reasonable ability to repay, and be unable to get the credit on reasonable terms elsewhere [1][3].
What is an SBA 504 loan?
Long-term, fixed-rate financing for buildings, land and long-life equipment. It can't be used for working capital or inventory.
A typical 504 project is split three ways: a private lender covers up to 50% of the cost, a Certified Development Company covers up to 40%, and you put in at least 10% [5][6]. Terms are 10, 20 or 25 years [5].
What credit score do I need for an SBA loan?
The SBA doesn't publish a minimum personal credit score. Its standard is that you're creditworthy and can reasonably repay; lenders set their own bar.
Lenders look at credit history, cash flow, equity and collateral [3]. To see what individual lenders publish about their minimums, see business loan requirements compared.
How do I find an SBA lender?
Use Lender Match on sba.gov. The SBA sends you a summary of interested lenders two business days after your request.
The SBA says Lender Match isn't a loan application; it's a tool to find lenders in your community [7]. You still apply with the lender you pick.
Glisten check
Four SBA loan programs side by side
| Program | Maximum | What it pays for | Longest term | Who makes the loan |
|---|---|---|---|---|
| 7(a) | $5 million [1] | Working capital, equipment, real estate, refinancing [1] | 25 years for real estate [3] | Bank or other SBA lender |
| SBA Express (a 7(a) type) | $500,000 [2] | Same uses as 7(a) | Not stated on the pages we read | Bank or other SBA lender; SBA backs 50% [2] |
| 504 | $5 million; $5.5 million for small manufacturers and some energy projects [9] | Buildings, land, equipment with 10+ years of life; not working capital [5] | 25 years [5] | Bank plus a Certified Development Company [6] |
| Microloan | $50,000; average about $13,000 per the SBA [4], about $15,400 in fiscal 2026 [10] | Working capital, inventory, supplies, equipment; not real estate or paying off debt [4] | 7 years [4] | Nonprofit intermediary lender [4] |
You'll often see SBA Express described with a fast turnaround. We didn't find one stated on any current sba.gov page, so we leave it out. The SBA's lender page lists 5 to 10 business days for its standard 7(a) processing [2].
Is this right for you?
Best for
- Established businesses comparing SBA programs before talking to a lender.
- Owners buying real estate or equipment who want long terms.
Not ideal for
- Startups that need money this week. SBA loans involve paperwork and lender review.
- Owners who won't sign a personal guaranty; 20% owners must.
Frequently asked questions
What is the maximum SBA loan amount?
$5 million for a 7(a) loan [1], and $5 million for a 504 loan, or $5.5 million for small manufacturers and some energy projects [9].
Does the SBA lend money directly?
No. Banks, other lenders and nonprofit intermediaries make SBA loans; the SBA backs or funds them [2][4].
Can I use an SBA loan for working capital?
Yes, with a 7(a) loan or a microloan. A 504 loan can't be used for working capital [1][4][5].
Do I have to sign a personal guaranty for an SBA loan?
If you own 20% or more of the business, yes: an unlimited full guaranty [8].
How we know this
On October 28, 2026 we read the SBA's borrower pages for 7(a), 504 and microloans, its lender pages on 7(a) loan types and terms and the 504 program, the Lender Match page, and the SBA's lender rulebook (SOP 50 10 8.1) for personal guaranties.
- 7(a) loans, SBA. Checked October 28, 2026.
- Types of 7(a) loans, SBA. Checked October 28, 2026.
- 7(a) terms, conditions and eligibility, SBA. Checked October 28, 2026.
- Microloans, SBA. Checked October 28, 2026.
- 504 loans, SBA. Checked October 28, 2026.
- CDC/504 loan program, SBA. Checked October 28, 2026.
- Lender Match, SBA. Checked October 28, 2026.
- SOP 50 10 8.1 technical policy updates (effective October 1, 2026), SBA. Checked October 28, 2026.
- SBA 504 loans, NerdWallet. Checked October 28, 2026.
- SBA microloans, NerdWallet. Checked October 28, 2026.