SBA Loans
SBA Loans
SBA loans are partially guaranteed by the U.S. Small Business Administration, which allows lenders to offer terms that would otherwise be impossible: lower down payments, longer repayment terms, and competitive interest rates.
These loans are designed to help small businesses acquire real estate, purchase equipment, fund working capital, and refinance existing debt. The government guarantee reduces lender risk, and those savings get passed to you.
As a Preferred SBA Lender, RCA Capital has delegated authority to approve loans, meaning faster decisions and smoother closings. Our SBA team has closed hundreds of these loans and knows how to navigate the process efficiently.
- No equity injection required
- Must save at least 10% on current debt service to qualify
- Up to 25-year term
- Up to 100% financing, 25-year term
- 51% or more owner-occupied
- SBA 7a or 504 loans
- Can include working capital, equipment, improvements, and closing costs
Up to 100% financing for:
- Practice start-up
- Practice expansion
- Practice acquisitions
- Partner buyout
- Can include working capital, equipment and improvements
- Must be in business at least two years
- 90% financing, up to 25-year term
- 80% financing (10% can be seller note on standby)
- Up to 100% financing for partnership buyout
- Up to $1.5 million Goodwill
- Buyer must have related experience
- Equity injection can come from HELOC
- Positive trends, no significant concentrations
- Can include working capital
The SBA Loan Process
What to expect from application to funding.
1
1-2 Days
2
1-2 Weeks
3
1 Week
4
1 Week
5
1-2 Weeks
What You Can Finance
SBA loans cover a wide range of business needs.Owner-Occupied Real Estate
Purchase, construct, or renovate commercial property for your business
Business Acquisition
Buy an existing business including goodwill, inventory, and assets
Equipment & Machinery
Finance equipment, vehicles, technology, and manufacturing machinery
Working Capital
Fund operations, inventory, marketing, and day-to-day expenses
Inventory Purchase
Stock up on inventory for seasonal demand or growth
Debt Refinancing
Consolidate high-interest debt into better SBA terms
Leasehold Improvements
Build out and customize your leased space
Partner Buyout
Finance the purchase of a partner's ownership stake
Why Choose SBA Financing?
Benefits that make SBA loans the preferred choice for small businesses.Owner-Occupied Real Estate
Purchase, construct, or renovate commercial property for your business
Long Repayment Terms
Up to 25 years for real estate means lower monthly payments and better cash flow for your business.
Competitive Rates
Government guarantee allows lenders to offer rates significantly better than a typical business loan.
No Balloon Payments
Fully amortizing loans mean no surprise lump-sum payments at maturity. Predictable payments throughout.
Flexible Use of Funds
Loans can be used for almost any legitimate business purpose—real estate, equipment, working capital, and more.
Build Equity Faster
Own your building instead of renting. Build business equity while locking in your occupancy costs.
Required Documentation
What you’ll need to prepare for your SBA loan application.Business Documents
-
3 years business tax returns
-
Year-to-date financials (P&L, balance sheet)
-
Business debt schedule
-
Articles of incorporation / operating agreement
-
Business licenses and permits
Personal Documents
-
3 years personal tax returns (all owners 20%+)
-
Personal financial statement (SBA Form 413)
-
Resume / background for key owners
-
Valid government-issued ID
-
Authorization to release credit info
Sample Deals
Restaurant Real Estate
SBA 7(a) – Denver, CO
Purchase Price
$1,850,000
SBA Loan
$1,665,000
Down Payment
Up to 25 Years
Term
25 Years
Rate
Prime + 2.75%
Monthly Payment
$12,400
The Story: Successful restaurant group expanding to a new location. Used SBA 7(a) to purchase a 6,000 SF building with just 10% down, preserving capital for build-out and working capital. Monthly payment is less than their previous rent.
Medical Office Purchase
SBA 7(a) – Ridgewood, NJ
Purchase Price
$1,450,000
SBA Loan
$1,450,000
Down Payment
Up to 25 Years
Term
25 Years
Rate
Prime + 2.75%
Monthly Payment
$13,176
The Story: Growing medical services office seeking to acquire the building it occupies. Used SBA 7(a) to purchase the building with just 0% down, preserving capital for build-out and working capital. Now owns most of the building and rents out additional space to tenants, allowing them to build equity and lower their monthly payment.
SBA 7(a) Loans
The SBA’s flagship program for general business financing. Use funds for almost any legitimate business purpose, including real estate, equipment, working capital, and debt refinancing.
SBA 504 Loans
Designed specifically for major fixed asset purchases like commercial real estate and heavy equipment. Features long-term, fixed-rate financing with very low down payments.
Max Loan Amount: $5,000,000
Down Payment: 0-10%
Term (Real Estate): Up to 25 Years
Term (Equipment): Up to 10 Years
Interest Rate: Variable (Prime + Spread)
Common Uses: Owner-occupied Real Estate, Business Acquisition, Working Capital, Equipment Purchase, and Debt Refinancing
Frequently Asked Questions
Common questions about SBA loan programs.
How long does an SBA loan take to close?
Typical SBA loans close in 45-60 days for 7A and 60-90 days for 504 from complete application. Simple deals can close in 45-60 days; complex deals may take 90-120 days. We’ll provide a realistic timeline after reviewing your specific situation.
What credit score do I need for an SBA loan?
Lenders generally look for 680+ FICO scores, though we’ve closed loans with scores in the 650s for strong applications. Credit isn’t the only factor—Lenders also evaluate business cash flow, collateral, industry experience, and equity injection. A lower score with strong compensating factors may still qualify.
Can I use SBA financing for investment property?
No. SBA loans require owner-occupancy—your business must occupy at least 51% of the property. You can lease out the remaining space to tenants. Pure investment properties are ineligible. For rental property financing, see our DSCR and commercial loan programs.
Is there a personal guarantee required?
Yes. The SBA generally requires personal guarantees from all owners with 20% or more ownership—it’s an SBA program requirement. Spouses may also need to sign in community property states or if they have an ownership interest.
What are the prepayment penalties?
For SBA 7(a) loans with terms of 15+ years, prepayment penalties apply only during the first 3 years: 5% in year 1, 3% in year 2, and 1% in year 3 only. SBA 504 loans have a declining prepayment penalty for the first 10 years on the CDC portion.
Can startups get SBA loans?
Yes. Startups need to demonstrate relevant industry experience, provide detailed projections, and typically need more equity injection (15%+). Franchises with established systems may qualify more easily. We evaluate each startup on its merits—strong experience and a solid plan can compensate for a lack of operating history.
See If You Qualify for SBA Financing
Free consultation. No obligation.
