The Small Business Administration (SBA) serves as the main resource for government-backed business loans. Because a portion of an SBA loan is guaranteed by the government, these loans allow small business owners to obtain capital with less equity than a conventional loan requires.
SBA Loans for Small Businesses
As America’s premier SBA lender, we've guided thousands of small businesses through the SBA loan process.
SBA Loan Programs
SBA 7(a) Loan
The most common SBA loan offers flexibility on terms/uses and is a good option for acquisitions, partner buyouts, real estate purchases and refinance.
- Up to 90% bank financing or higher
- Fully amortized / no balloons
- Loan amounts up to $5 million2, 3
SBA 504 Loan
504 loans can be used for buying commercial real estate, financing improvements within that real estate and purchasing large equipment.
- Low down payment (typically 10%) conserves your cash
- Fixed or floating interest rates available
- Loan amounts up to $15 million2, 3
SBA Loan Requirements4
While SBA 7(a) and SBA 504 loans are both designed to help small businesses access long-term, affordable financing, each program has similar requirements at its core, but the program structure, prepayment penalties and guarantee fees are 3 major differences. At Live Oak Bank, we apply consistent SBA standards with a hands-on lending approach – focusing on borrower readiness, cash flow strength and long term success.
| SBA 7(a) Loan | SBA 504 Loan | |
|---|---|---|
| Program Structure | Single loan from an SBA-approved bank or lender, fully guaranteed in part by the SBA | Two loans — bank (~50%), SBA/CDC (40%), borrower down payment (10%; 15% for start ups/special use) |
| SBA Guarantee Fee | 0–3.75% of guaranteed portion (varies by loan size and term); often financed into the loan | ~0.5% SBA fee on SBA portion + small ongoing servicing fee; typically lower upfront cost than 7(a) |
| Prepayment Penalty | 5% / 3% / 1% in years 1–3 (15‑year+ terms only) | On the SBA debenture — declining penalty over first half of loan term (typically 10 years on a 20-year note) |
Find the Perfect SBA Loan for Your Industry
We specialize in lending to different industries. Each team of experts is laser-focused on their industry all day, every day and fully understands the nuances of your unique business.
- Accounting and Tax
- Agriculture
- Automotive Care
- Behavioral Health Care
- Broadband Businesses
- Car Wash
- Dental
- Education Services
- Employee Stock Ownership Plan
- Fitness Centers
- Franchise Restaurants
- Franchises
- Funeral Home and Cemetery
- Government Contracting
- Hardware Store
- Healthcare
- Home Care
- HVAC, Plumbing and Electrical Contractors
- Insurance
- Investment Advisory
- Law Firms
- Loan Syndications
- Managed Service Providers
- Pet Care Facilities
- Pharmacy
- Professional Services Firms
- Property Management
- Residential Assisted Living
- Residential and Commercial Service Contractors
- Restoration, Remediation and Cleaning
- RV Parks
- Self-Storage
- Senior Care
- Seniors Housing
- Sponsor Finance
- Technology, Media and Telecommunications
- Veterinary
- Winery and Vineyard
Live Oak® Express
Live Oak® Express loans are perfect for small business owners who need access to capital quickly. These term loans are ideal for fueling growth for a variety of business needs. Loans range from $10,000 – $350,0003.
Terms Up To 10 Years3
Flexible terms to meet your needs
Transparent Closing Costs
Understand exactly what you’re paying for
No Prepayment Penalties
Pay off your loan early without consequences
No Hard Personal Credit Inquiries
It won’t impact your credit score
Simple Documentation
Only a few documents to get started
Streamlined Process
A digital application makes the process more efficient
Compare Small Business Loans3
| SBA 7(a) Loan | SBA 504 Loan | Live Oak® Express Loan | |
|---|---|---|---|
| Max Loan Amount | Up to $5M | Up to $5.5M+ | Up to $350k |
| Primary Use | Broad, flexible needs | Real-estate and major equipment | Smaller, fast-approval needs |
| Approval Speed | Moderate | Moderate | Fast |
| Terms | Up to 25 years | Up to 25 years | Up to 10 years |
| Best For | Expansion, acquisition, working capital | Long-term investment | Quick funding for smaller projects |
| Typical Rate Structure | Variable or fixed | Fixed for the life of the loan (SBA portion only). Bank pricing on the 1st mortgage can be variable or fixed. | Variable or fixed |
| Current Rate Range | ~6.75%-9.75% | 1st mortgage (bank): ~6.75%-9.25% 2nd mortgage (SBA): ~5.6%-6.2% | ~8.75-10.75% |
We’re a SBA Preferred Lender
As part of the Small Business Administration (SBA) Preferred Lender Program (PLP), we can get capital in your hands faster.
- We can approve your loan without going through the SBA first, which shortens the approval time
- Your loan is typically approved three to four weeks faster than with non-PLP lenders
How to Apply for an SBA Loan
Applying for an SBA loan can feel daunting at first, especially when borrowers are also trying to evaluate affordability. While timelines can vary by lender, loan program and borrower readiness, most SBA loans follow a similar step-by-step process.
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Day 1
Initial Consultation
A preliminary discussion with a lender to confirm eligibility, loan purpose, and program fit, and to review general SBA loan terms and rates.
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1-2 hours to apply
Submitting Documentation
The borrower provides required financial and business documents so the lender can formally evaluate the request.
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Up to 10 business days once submitted
Underwriting Review
The lender reviews the application in detail, assesses risk, and structures final terms based on SBA guidelines and applicable SBA loan interest rates.
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30-45 days
SBA Approval and Closing
The loan is authorized by the SBA, final documents are signed, and closing is completed.
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Up to 24 hours once signed
Funding
Funds are disbursed to the borrower, allowing the business to move forward with its planned use of capital.
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Frequently Asked Questions About SBA Loans
Once a full application is sent in with all supporting documents, SBA loan approval from Live Oak Bank can take roughly a week.
At Live Oak Bank, a minimum FICO score of 680 is required to be considered for an SBA loan.
SBA loan interest rates are set as a spread over the prime rate. Pricing is risk-based, meaning the final rate reflects the overall strength of the applicant – taking into account factors such as cash flow, time in business, personal credit, existing debt obligations and available collateral.
Yes, startups can be considered for SBA loans. This is dependent upon the industry, strength of the business plan and projections, and equity being contributed to the project.
Live Oak Loves Small Businesses
At Live Oak, we’re more than just a bank – we’re partners in our customers’ success stories. That’s why we’re thrilled to showcase the real people and businesses we’re proud to support.
We’ve empowered 60,000+ small business owners and are so proud to spotlight their incredible journeys and inspire others.
