Prepare for an SBA loan conversation
SBA-backed financing can involve different programs and application channels. This guide outlines the main options, broad eligibility considerations, steps to prepare, and records a provider may request.
Preparation guidance only. SBA and lender requirements vary by program and request. This guide and RivetRatio tools do not determine eligibility, predict a lending decision, or promise or guarantee loan approval. Confirm current requirements with the lender, CDC, or intermediary handling your request.
01 / Explore the channels
Main SBA business loan programs
These programs serve different financing needs and use different delivery partners. The summaries below are starting points, not a determination that a particular program is right for your business.
SBA PROGRAM
7(a) loans
A flexible SBA-backed loan program for a range of eligible business financing needs. The participating lender reviews the request and handles the application process.
Start with an SBA-approved 7(a) lender or explore SBA Lender Match.
Read about 7(a) loansSBA PROGRAM
CDC/504 loans
Long-term financing for eligible major fixed assets and business growth projects. A Certified Development Company (CDC) works with a lender as part of the financing structure.
Contact a CDC to discuss the project and its application process.
Read about CDC/504 loansSBA PROGRAM
Microloans
Smaller loans for eligible business purposes, provided through nonprofit intermediary lenders. Each intermediary has its own application and review process.
Find an SBA microlending intermediary serving your area.
Read about MicroloansFor an overview of SBA financing options, see the SBA loan programs page. Program terms and application details can change; refer to SBA and your provider for current information.
02 / Check the broad factors
General eligibility considerations
SBA program rules and lender underwriting standards differ. Depending on the program, the business and request may be reviewed against factors such as:
Business activity and ownership
The business and its owners must meet the applicable SBA program rules. What activities and ownership arrangements qualify can vary by program.
Location and size
Programs have U.S. location requirements and use SBA size standards. The relevant size standard depends on the business and program.
Purpose of the funds
The proposed use must be eligible for the program. Describe what the funds will pay for and ask the lender or intermediary to confirm that use.
Credit and repayment capacity
A lender may review credit history, existing obligations, financial condition, and the business’s ability to repay under its underwriting standards.
These are general topics to ask about, not a complete eligibility test. Review the applicable SBA program information and ask a participating provider to assess its requirements for your circumstances.
03 / Get ready to apply
A practical application-preparation sequence
Define the request
Estimate the amount needed, explain each intended use, note the timing, and identify how the business expects to repay the financing.
Explore the relevant program channel
Compare the broad purposes and application channels for 7(a), CDC/504, and Microloans. Confirm current program details with the provider.
Talk with a lender, CDC, or intermediary
Ask which program and application process may fit the request, what information they need for an initial discussion, and how to submit it. SBA Lender Match can help you explore participating lenders; a match is not an approval or loan offer.
Submit the provider’s application and records
Use the forms, document list, and submission method supplied by the lender or intermediary. Check that the information is complete and consistent.
Respond to follow-up requests
The provider may ask for clarification or additional records during review. Keep copies of what you submit and confirm any outstanding items directly with them.
Explore lenders through SBA Lender Match
Lender Match can help you connect with participating lenders. It is an exploratory matching service; it is not an application, commitment, or promise that a lender will approve a request.
Visit SBA Lender Match04 / Gather what may help
SBA borrower document checklist
Use this checklist to organize records for a lender conversation. Check the items that apply to your request.
Business and owner information
Financial and tax records
Plan, request, and transaction support
05 / Keep organizing
Related preparation tools
Use these RivetRatio resources to organize information or review estimates based on your own inputs before speaking with a lender.
01 / PREPARE
Organize borrower records
Track preparation items and note records you may want to gather before a lender conversation.
Open the readiness checklist02 / PREPARE
Frame the loan request
Organize the requested amount, intended use of funds, and details to discuss with a lender.
Open the loan request worksheet03 / PREPARE
Review repayment assumptions
Estimate property cash-flow coverage from your inputs when repayment from property income is relevant.
Open the DSCR calculator04 / PREPARE
Review property value
For requests involving property or real-estate collateral, compare the proposed loan plus any liens that will remain secured by the property with its entered value. LTV is one part of understanding a financing request, not a complete eligibility test or a guarantee of approval.
Open the LTV calculator