SBA 7(a) Loan
Government-backed. Largest program. Up to $5M for working capital, equipment, or real estate.
Business Line of Credit
Revolving credit you draw on as needed. Pay interest only on what you use. Best for cash flow.
Equipment Financing
Finance machinery, vehicles, or technology. Equipment itself serves as collateral — easier to qualify.
Commercial Real Estate
Purchase or refinance commercial property. SBA 504 loans for owner-occupied real estate.
Invoice Factoring
Convert outstanding invoices into immediate cash. No new debt — sell your receivables at a discount.
Merchant Cash Advance
Advance based on future credit card sales. Fast funding, flexible repayment tied to daily revenue.
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SBA loans funded faster than any bank in America
Live Oak Bank is the #1 SBA 7(a) lender by volume. Get pre-qualified for up to $5M with a dedicated loan officer — in 48 hours.
SBA 7(a) Loan — The Gold Standard
The SBA 7(a) is the most popular government-backed loan program, offering up to $5 million at below-market rates. Because the SBA guarantees 75–85% of the loan, banks can offer better terms than conventional loans.
- Use for working capital, equipment, real estate, refinancing
- Down payment as low as 10% for most loan types
- Repayment terms up to 25 years for real estate
- Must be a for-profit US business · 2+ years preferred
- Personal credit score 680+ recommended
SBA 7(a) Rates & Terms
How to Get an SBA Loan in 30 Days or Less
Live Oak's streamlined process has the fastest SBA approval in the country.
Line of Credit vs. Term Loan: Which Is Right for Your Business?
We break down the total cost, flexibility, and ideal use case for each structure.
How to Build Business Credit from Scratch in 12 Months
Separate your personal and business finances and unlock better terms.
Not all business loans are created equal — and choosing the wrong product can cost you significantly in fees, rates, or missed growth opportunities. Here's a practical framework for matching your business need to the right funding type.
Match your need to your product
- Need cash for daily operations? → Business Line of Credit
- Buying equipment or machinery? → Equipment Financing (self-collateralizing)
- Expanding or buying real estate? → SBA 7(a) or 504
- Waiting on client invoices? → Invoice Factoring
- High-volume credit card sales? → Merchant Cash Advance
Red flags in business loans
- Factor rates instead of APR — always convert to compare true cost
- Prepayment penalties — watch for "prepayment kickers" in term sheets
- Personal guarantee requirements — most small business loans require one
- Blanket liens — some lenders claim all business assets as collateral
SBA 7(a) loans require: 2+ years in business (preferred), personal credit score of 680+, positive cash flow, and the ability to demonstrate repayment capacity. You'll also need to be a US for-profit business and have exhausted other financing options. Required documents include 2 years of business tax returns, 3 months of bank statements, a business plan, and a personal financial statement.
It varies significantly by loan type. Online lenders like Fundbox and Kabbage can approve and fund a line of credit in 24–48 hours. SBA loans take 2–8 weeks depending on complexity and the lender's approval process. Preferred SBA lenders like Live Oak Bank can move faster — sometimes in 2–3 weeks. Having your documentation ready before applying dramatically speeds up the process.
It depends on the loan type and amount. Lines of credit under $50K often require no collateral. Equipment loans use the equipment itself. SBA loans under $25K don't require collateral, but larger amounts may require business assets or real estate. Most business loans require a personal guarantee — meaning your personal assets can be at risk if the business defaults.
A business loan is a traditional debt product with an interest rate, fixed term, and scheduled payments. A Merchant Cash Advance is an advance on future revenue — not technically a loan — with a "factor rate" (e.g. 1.3x) applied to the advance. MCAs repay daily or weekly based on card sales. They're fast and accessible but can carry effective APRs of 50–200%, making them expensive. Only use MCAs for very short-term bridge needs.