Tied to a benchmark (e.g., Prime/SOFR) plus a capped spread set by SBA; the exact rate depends on loan size/term and lender.

SBA guaranty fee (based on guaranteed portion), packaging/underwriting, third-party reports (UCC, lien, filings), and closing costs. Many fees can be financed.

For working-capital terms under 15 years, SBA’s standard prepayment penalty typically does not apply; confirm lender-specific terms.

Sometimes at startup or during ramp, subject to lender/SBA rules.

Often, if it improves cash flow or meets SBA “substantial benefit” tests (rate/term improvement, no creditor loss from SBA funds, etc.).

For-profit, U.S.-based small businesses meeting SBA size standards, operating in eligible industries, with owners of good character and credit.

By NAICS code using revenue or headcount thresholds; lenders validate you meet “small business” criteria.

You must demonstrate that you can’t get equivalent credit on reasonable terms without SBA support.

Primarily passive real estate, speculative ventures, certain financial businesses, and other restricted categories (lender will screen).

Ownership/control ties can aggregate employees/revenue across entities for size-standard testing.

Yes—franchise/brand relationships must meet SBA eligibility/affiliation guidance; lenders verify.

Cash flow (DSCR/global cash flow), profitability trends, management experience, liquidity, leverage, collateral, guarantor strength, and credit history.

Many lenders target ~1.15× or better on a pro forma basis; standards vary by lender/risk.

Meaningful. Strong personal credit helps; significant derogatories complicate approvals.

Yes—global analysis of all business/guarantor obligations is common.

Not always; for startups or turnarounds, lenders often require meaningful injection/skin-in-the-game.

UCC on business assets; additional available collateral (equipment/RE) may be taken. Personal residence may be pledged if required and available—rules vary.

Usually not for pure working capital unless specific collateral or a business acquisition is involved.

Deliver financials, maintain insurance, no additional indebtedness without consent, leverage/coverage tests (varies), and use-of-proceeds tracking.

Yes, but it must fit cash flow; refinancing rules apply if using proceeds to replace it.

SBA forms (e.g., borrower info), business/IDs, 3 years business & personal tax returns (if applicable), YTD P&L and balance sheet, AR/AP agings, debt schedule, business plan/projections (for startups/growth), bank statements, ownership structure, and BOI/beneficial ownership details as required.

Ranges from days to several weeks depending on lender, file complexity, and required third-party checks.

PLP lenders can approve in-house (faster). Non-PLP require SBA concurrence (longer).

Lump sum or multiple draws (especially for lines); lender controls payoffs if refinancing.

Sign loan/guaranty agreements, security documents, resolutions, and provide final insurance/tax/verifications.

A 7(a) umbrella offering revolving/non-revolving working-capital lines (e.g., Working Capital CAPLine, Contract, Seasonal, Builders).

Advance against a borrowing base (inventory/AR/contract receivables) with periodic reporting and field exams depending on size/complexity.

Often up to 10 years for working-capital lines, with annual renewals/re-underwriting.

Formula that caps availability (e.g., % of eligible AR + % of eligible inventory), excluding ineligible items (old AR, consignment, etc.).

Monthly/quarterly borrowing base certificates, AR agings, inventory reports, and occasional audits/field exams.

Yes—classic working-capital use.

Yes—CAC, campaigns, and inventory purchases are allowed working-capital uses.

Often yes, if the refinance yields meaningful benefit and meets SBA criteria; lender will require payoff letters and verify no loss to the creditor from SBA proceeds.

Past-due taxes may be eligible with an approved plan and lender/SBA sign-off.

Limited; proceeds must follow SBA use-of-funds rules and documentation. Ask the lender before incurring costs.

General liability/contents; sometimes life insurance on key owners; flood insurance if collateral in a flood zone.

Annual financials/tax returns, interim statements upon request, and ongoing compliance items.

Monthly principal and interest for term loans; interest-only or interest-plus-fees during draw for lines, then amortization.

Late fees per note; consistent issues may trigger a default and SBA reporting.

Potentially—re-amortization, temporary interest-only, or line increases subject to lender/SBA approval and performance.

Over-optimistic projections, inadequate working-capital controls, covenant breaches, and stacking non-SBA debt after closing.

Maintain reporting cadence, monitor DSCR/leverage, avoid unauthorized additional liens, and keep taxes current.

Lender will pursue remedies under loan/security agreements and PGs; SBA may be involved after guaranty purchase.

No. 7(a) loans are not forgivable; they must be repaid.

7(a) can be more accessible and longer-tenored with capped rates; conventional LOCs can be cheaper if you qualify.

504 focuses on long-life fixed assets (real estate/equipment) via a CDC second lien; 7(a) is broader and working-capital friendly.

7(a) tends to be far cheaper with longer terms but slower and more document-heavy; MCA/short-term/RBF fund quickly at higher total cost.

Choose CAPLine if you need ongoing availability against AR/inventory; choose a term loan for one-time needs with amortization.

Prefer active SBA PLP lenders with experience in your industry, transparent timelines, and strong closing/servicing teams.

Clean, complete package; clear use of proceeds; realistic projections; documented owner experience; and no undisclosed liabilities.

Yes—ensure fees are disclosed and reasonable; you can also approach banks/credit unions/SBA-focused nonbanks directly.

Simple working-capital term loans can close in a few weeks; lines or refis with multiple payoffs can take longer.

Often yes, within LTV and SBA limits.

Use CAPLines Seasonal or structure draws to match cycles; maintain borrowing-base discipline and reserves.

Contract CAPLine may fit—advances against assignable contracts and progress payments.

7(a) can fund CAC, inventory, and ops if cash-flow case is strong; lines may require robust AR/inventory controls.

Export variants (e.g., Export Working Capital under 7(a)) can support purchase orders and foreign AR.

Expect affiliation and global cash-flow analysis; be ready with consolidated/combined financials.

Unclear rate/fee math, aggressive covenants without rationale, vague collateral demands, or inability to articulate SBA eligibility.

Inconsistent financials vs tax returns, missing BOI/ownership detail, and unsubstantiated projections.

Drawing for non-business use, layering new high-cost debt post-close, or failing to provide timely financials.

Obtain lien releases/UCC-3 terminations and keep payoff documentation. Good performance may ease future SBA or bank credit.

Yes—seasoning with solid payment history and financials can mean larger approvals, better pricing, or conventional credit later.