SBA Loans,
Done Right
The lowest down payments and longest terms in commercial lending, if you can get through the paperwork. We handle that part, so you don’t have to.
What an SBA Loan Is,
and Who It’s For
An SBA loan is a loan from a bank or private lender that the Small Business Administration backs, guaranteeing 75% to 90% of it, so the lender takes less risk and can give you terms a conventional loan can’t match: lower down payments, longer repayment, and more flexible collateral.
There are two programs, and most deals fit one of them:
SBA 7(a) Loan
SBA 7(a) is the flagship—flexible and general-purpose. Buy a business, buy the building you operate in, refinance debt, or fund working capital. Up to $5 million.
SBA 504 Loan
SBA 504 is built for big fixed assets—commercial real estate and heavy equipment—with long, fixed-rate terms and a low down payment.
If you’re buying a business, buying the property your business runs on, or expanding one you already own, an SBA loan is usually the cheapest money available to you. We’ll tell you up front if it isn’t.
7(a) or 504:
Which SBA Loan Fits Your Deal
This is the first question worth answering, because it’s an easy one to get wrong.
Choose SBA 7(a) when…
Your deal is flexible or mixed—a business acquisition, working capital, a partner buyout, or real estate bundled with other needs. It funds up to $5 million, with terms up to 10 years for working capital and up to 25 years for real estate, and a typical down payment of 10% to 20%. Rates are set at the Prime Rate plus a lender spread, and the SBA caps how high that spread can go, so there’s a ceiling on what you can be charged.
Choose SBA 504 when…
You’re buying or building commercial real estate or large equipment and want a long, fixed rate. It splits into two pieces—a bank loan and a government-backed debenture—which means a lower down payment for you, but two closings and a little more time.
Why Borrowers Bring Their SBA Loans to AAI
SBA loans are the most paperwork-heavy financing in commercial lending. The forms are unforgiving, the SBA’s rules are specific, and a single missing or wrong document can stall your deal for weeks or sink it entirely.
That’s where we come in. We’ve closed over $526 million in transactions, and we know the SBA’s requirements, the forms, and the places these loans go wrong. We build your file to the standard the lender’s credit committee needs to see, place it with an SBA Preferred Lender who can approve your loan without waiting on the SBA itself, and manage everything from inquiry to closing.
You bring us the project. We handle the SBA.
What You’ll Need for an SBA Loan
An SBA loan takes a real stack of documentation. Here’s most of it:
About your business
Three years of business tax returns, year-to-date profit-and-loss and balance sheet, a business debt schedule, licenses and registrations, articles of incorporation or your operating agreement, twelve months of bank statements, and accounts receivable and payable aging.
About you and any other owners
Three years of personal tax returns for everyone who owns 20% or more, a personal financial statement, a few months of personal bank statements, a resume, and ID.
About the deal itself
A purchase agreement if you’re acquiring, a business valuation, equipment quotes or construction bids, and—for real estate—an appraisal and environmental report.
It’s a long list. Here’s the part that matters: almost none of it lands on you. We go straight to your CPA, your attorney, and your bookkeeper for what they already have, we draft what doesn’t exist yet, and the few things only you can provide are the only things we’ll ask you for. The pile is big. But your part of it is small.
What to Watch Out for
with SBA Loans
Most lenders won’t walk you through the hard parts until you’re in too deep. We’d rather you know them now, so you don’t sink weeks into a loan that was never going to work for you.
The personal guarantee is unavoidable.
Anyone who owns 20% or more has to personally guarantee the loan—even behind an LLC. Your personal assets back it.
There’s a guarantee fee.
The SBA charges a one-time fee, generally a few percent of the guaranteed portion. It can be rolled into the loan, but it’s real money, and you should plan for it.
504 loans carry a prepayment penalty.
If you pay off a 504 early in its first decade, there’s a declining fee. If you might sell or refinance soon, that changes the math—and we’ll run it with you before you commit.
504 real estate has an occupancy rule.
Your business has to occupy at least 51% of the building (60% for new construction). Pure investment property doesn’t qualify for SBA.
Acquisitions get extra scrutiny.
Most lenders want two-plus years of tax returns on the business you’re buying, and startups face a higher bar and a bigger equity injection.
None of these are dealbreakers. They’re just the things a good advisor flags before they become surprises.
SBA Loans for Specific Situations
The right SBA structure depends on what you’re actually doing. A few of the most common:
SBA loans for buying a business
acquisitions, partner buyouts, and competitor purchases, usually through 7(a).
SBA loans for commercial real estate
buying or building the property your business operates from, often through 504.
SBA loans for construction
ground-up builds and expansions for owner-occupied property.
SBA loans by industry
gas stations, hotels, medical practices, and other industries with their own SBA quirks.
If your situation isn’t here, it’s still worth a conversation—SBA covers more than most people expect.
SBA Loan FAQ
The details that matter most, answered straight.
Find Out What You Qualify For
Tell us about your project in the form below. We’ll run the numbers, tell you up front whether an SBA loan is your best option, and handle everything from there. No cost to find out, and no obligation.