Eight government-backed loan programs. Each designed for a different borrower, a different purpose, and a different situation. Here's everything you need to choose the right one.
| Program | Max Amount | Best For | Max Term | Min Down | Speed |
|---|---|---|---|---|---|
| SBA 7(a) | $5 million | Most versatile Working capital, equipment, real estate, acquisitions | 25 years | 10–20% | 45–90 days |
| SBA 504 | $5.5 million | Fixed assets Commercial real estate, major equipment | 25 years (fixed rate) | 10% | 60–90 days |
| SBA Express | $500,000 | Speed Working capital, smaller equipment | 10 years | Varies | 30–45 days |
| SBA Microloan | $50,000 | Startups Early-stage, small capital needs | 7 years | Varies | 30–60 days |
| Business Acquisition | $5 million | Buying a business Existing businesses, franchises | 25 years | 10% | 60–90 days |
The SBA's flagship program — and the most widely used small business loan in the country. The 7(a) is designed to be flexible: working capital, equipment, real estate, debt refinancing, or buying a business. The SBA guarantees up to 85% of loans under $150,000 and up to 75% of larger loans, allowing lenders to offer more favorable terms than conventional financing.
Purpose-built for major fixed assets — commercial real estate and large equipment. The 504 uses a three-party structure: a bank funds 50%, a Certified Development Company (CDC) funds up to 40% backed by the SBA, and the borrower puts in as little as 10%. The CDC portion carries a fixed interest rate for the full term, giving borrowers long-term payment predictability.
A streamlined version of the 7(a) built for speed. The SBA guarantees 50% of Express loans and in exchange provides a 36-hour response guarantee instead of the standard 5–10 business day timeline. For borrowers who need capital quickly and don't need more than $500,000, the Express program is often the fastest path to SBA-backed funding.
Designed for the smallest end of the small business spectrum — startups, sole proprietors, and very small businesses needing modest capital. Microloans are administered through SBA-approved nonprofit intermediary lenders who often provide business training and technical assistance alongside the loan. Average loan size is approximately $13,000. More flexible credit requirements than any other SBA program.
Note: Microloans cannot be used to pay existing debt or purchase real estate.
Check my Microloan eligibilityUsing an SBA 7(a) loan to purchase an existing business is now the most common use of SBA financing. Buyers can acquire businesses with as little as 10% down, with the SBA guaranteeing the remainder. The SBA can also finance goodwill — the intangible value above book value — which conventional loans typically cannot. Sellers can contribute up to 10% via a standby note, further reducing the buyer's cash requirement.
| Program | Max Amount | Best For | Guarantee | Location Req. | Speed |
|---|---|---|---|---|---|
| USDA B&I | $25 million | Rural businesses Working capital, equipment, real estate | Up to 80% | Rural areas <50K population | 60–90 days |
| USDA REAP | $25 million | Rural energy Renewable energy, energy efficiency | Up to 75% | Rural areas; agricultural producers | 90–120 days |
| USDA 538 | $100M+ | Multifamily Affordable rural rental housing development | Up to 90% | Rural areas <35K population | 90–150 days |
The USDA B&I program is the rural equivalent of the SBA 7(a) — a broad, flexible loan guarantee designed to improve economic conditions in rural communities. The USDA guarantees up to 80% of loans made by approved lenders, allowing rural businesses to access capital they couldn't get through conventional financing. If your business is located in a rural area and you're being turned away by traditional banks, the B&I program is likely your best path to funding.
The Rural Energy for America Program (REAP) provides grants and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements. Uniquely, REAP offers both grant funding (no repayment required) and loan guarantees — making it one of the most favorable government programs available to qualifying rural businesses. Solar, wind, anaerobic digesters, biomass, and energy efficiency retrofits all qualify.
The USDA Section 538 Guaranteed Rural Rental Housing program provides loan guarantees for lenders financing affordable multifamily rental housing in rural areas. The USDA guarantees up to 90% of the loan, dramatically reducing lender risk and enabling developers to access financing at scale that would be impossible through conventional channels. Projects must serve low-to-moderate income rural tenants. This is one of the most underutilized — and most powerful — rural housing finance tools available to developers in 2026.
The 538 program pairs exceptionally well with Low Income Housing Tax Credits (LIHTC). The 90% guarantee dramatically improves debt coverage ratios on tax credit deals, often allowing developers to increase the loan amount and reduce required equity — a combination that makes otherwise unfeasible rural affordable housing projects viable.
Check my 538 eligibilityWorking capital, equipment, real estate, or buying a business — in any state.
Major fixed asset purchase with a long-term fixed rate.
Speed matters more than loan size.
Located outside a major metro — under 50,000 population.
Renewable energy or efficiency project — agricultural or rural business.
Multifamily project serving low-to-moderate income tenants.
Our eligibility quiz covers both SBA and USDA programs — and tells you exactly which ones match your situation in 60 seconds, for free.
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