SBA Loans
Who Qualifies for an SBA Loan?
SBA eligibility turns on business size, an eligible use of funds, a reasonable owner investment, and a for-profit U.S. operation. Some industries are excluded, and owners with 20% or more equity must personally guarantee.
The main conditions
- For-profit and operating in the U.S.
- Meets SBA size standards for its industry
- Demonstrates need for the loan
- Borrower contributes equity
- Owners with 20%+ equity personally guarantee
Common disqualifiers
Non-profit status, certain ineligible industries such as lending or gambling, and existing default on government debt.
Startups and newer businesses
Startups can qualify with strong industry experience, a credible plan and borrower contribution — expect more scrutiny of the projections.
Frequently asked questions
Do I need collateral?
Collateral is preferred but not always required for smaller loans.
Are franchises eligible?
Many are, when the system is on the SBA Franchise Directory.