Guide
The Complete Guide to SBA Loans
SBA loans are government-guaranteed small-business loans made by approved lenders. SBA 7(a) is flexible and broad; SBA 504 is built for owner-occupied real estate and long-life equipment. Eligibility depends on size standards, an eligible use of funds and borrower contribution, and owners with 20%+ equity must personally guarantee.
7(a) vs 504
Choose 7(a) when you need flexibility — working capital, equipment, acquisitions or owner-occupied real estate. Choose 504 for major fixed assets, where a bank loan is paired with a CDC debenture.
| Best for flexibility | SBA 7(a) |
| Best for owner-occupied real estate | SBA 504 |
| Typical timeline | 4–8 weeks (7a) · 6–10 weeks (504) |
| Personal guarantee | Owners with 20%+ equity |
Who qualifies
- For-profit, U.S.-based, operating in the U.S.
- Meets SBA size standards for its industry
- Demonstrated need for the loan
- Borrower equity contribution
- Eligible use of funds
What lenders look for
SBA-preferred lenders assess repayment capacity, the use of funds and borrower contribution. Complete, consistent financials speed the file more than anything else.
Preparing the file
- Last three years of business and personal returns
- Year-to-date interim financial statements
- Business debt schedule
- Personal financial statement per guarantor
- Sources-and-uses statement
Frequently asked questions
How long does SBA take?
Roughly 4–8 weeks for 7(a) and 6–10 weeks for 504, depending on appraisal and documentation.
Do startups qualify?
Sometimes — with strong experience, a plan and borrower contribution.
Are you a lender?
No. Tesni Capital is a marketplace and broker; lenders make all credit decisions.