Loans & Funding9 min read • June 2026
SBA Loans Explained: 7(a), 504, and Microloans
SBA-backed loans offer lower rates and longer terms than conventional loans. Here is a plain-English breakdown of every program and how to qualify.
SBA 7(a) Loan
Working capital, equipment, real estate, business acquisition
Max Amount
$5 million
Term
Up to 25 years (real estate), 10 years (other)
Rate
Prime + 2.25%–4.75%
Requirements
2+ years in business
680+ personal credit score
Profitable operations
Cannot get conventional financing
SBA 504 Loan
Commercial real estate and major equipment purchases
Max Amount
$5.5 million
Term
10 or 20 years
Rate
Fixed, below-market rate
Requirements
Net worth under $15M
Net income under $5M after taxes
For-profit US business
Owner-occupied real estate
SBA Microloan
Startups, nonprofits, and underserved entrepreneurs
Max Amount
$50,000
Term
Up to 6 years
Rate
8%–13%
Requirements
Newer businesses welcome
Lower credit score thresholds
Business plan required
Some programs require training