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SBA programs, plain English

The SBA loans cheat sheet: what to expect before you apply

A one-page summary of the main SBA loan programs, the paperwork, the timelines, and what to do if you need money sooner.

Updated October 16, 2026 · Funding by Merchant Fund Express

The short answer

SBA loans are bank and lender loans partly backed by the U.S. Small Business Administration. The main programs are 7(a), 504, SBA Express and microloans. They usually take weeks to months and need more paperwork than private funding, and rates are typically set as a base rate plus a spread capped by SBA rules. Merchant Fund Express does not make SBA loans, but it can review bridge or alternative funding while an SBA file is in process.

At a glance

Who makes the loanBanks, credit unions and approved lenders; the SBA backs part of it
Main programs7(a), 504, SBA Express, microloans
Typical timelineUsually weeks to months, varies by lender and file
Rate structureBase rate plus a spread capped by SBA rules
PaperworkHeavier: tax returns, financial statements, debt schedule, business plan for some
CreditVaries by lender; stronger personal and business credit helps
CollateralOften requested when available; rules vary by program and lender
Best forPlanned, longer-term needs where you can wait
Avoid ifYou need money for payroll, repairs or inventory this week
MFE roleBridge or alternative funding only, from $5,000 to $5,000,000

Before you apply: checklist

  • Decide which program fits: working capital (7(a) or Express), real estate and big equipment (the 504 program), small amounts (microloan)
  • Gather two to three years of business and personal tax returns if you have them
  • Prepare a current profit and loss statement and balance sheet
  • Write a debt schedule listing every loan, advance and lease you owe
  • Pull your personal credit report and fix errors before a lender sees it
  • Plan for a timeline of weeks to months, not days
  • If cash is tight now, price a short bridge before the gap becomes an emergency
  • Ask the SBA lender how any new short-term funding would be viewed in the file

Check what your business qualifies for

Merchant Fund Express reviews sba loans requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.

Check funding options with Merchant Fund Express

The four SBA programs in one minute

  • SBA 7(a): the general-purpose program. Used for working capital, equipment, refinancing some debt, and buying a business.
  • SBA 504: built for long-term fixed assets like owner-occupied real estate and major equipment, usually involving a bank and a certified development company.
  • SBA Express: a 7(a) version where the lender has more authority to decide, often with a lighter process for smaller amounts.
  • Microloans: smaller loans made through nonprofit lenders, often paired with coaching. Good for very young businesses.

Program limits and fees change, so confirm current figures with the SBA or your lender. This sheet does not quote them.

Why many owners need faster money first

The SBA process is careful. Lenders review tax returns, projections, collateral and the owner's history. That care is why SBA rates are usually lower than short-term funding. It is also why a file can sit for weeks.

Meanwhile, payroll, rent and supplier bills keep coming. Owners who wait until the account is empty often end up paying more for rushed money. Read the business funding requirements guide to see what both SBA lenders and faster funders look at.

Illustrative example: the cost of waiting

Illustrative example
AssumptionFigure
Expected SBA loan$150,000
Months until expected funding3
Monthly cash shortfall until then$12,000
Total gap to cover (3 x $12,000)$36,000
Bridge requested (gap plus a $4,000 cushion)$40,000
Assumed factor rate on a short advance1.25
Total payback (40,000 x 1.25)$50,000
Cost of the bridge (50,000 - 40,000)$10,000

The question is whether $10,000 is cheaper than missed payroll, lost suppliers or a late tax penalty. Sometimes it is. Sometimes cutting costs for three months is better.

These figures are illustrations, not offers. Real terms depend on the full file and are set by the funder at review.

Funding brings customers. Is your website ready for them?

Funding usually pays for growth: more stock, staff, equipment or marketing. Make sure the customers that growth brings find a website that explains what you do and makes it easy to call, book or buy. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month.

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Common mistakes

  • Applying for an SBA loan when you need money in days.
  • Taking several short-term advances while an SBA file is open, which can shrink what the SBA lender will approve.
  • Leaving existing debts off the debt schedule.
  • Assuming an SBA decline means no funding at all. Many alternatives look at deposits, not just tax returns.
  • Not asking the SBA lender whether the loan can pay off a bridge at closing.

How Merchant Fund Express handles this

Merchant Fund Express does not make SBA loans. What MFE can do is review bridge funding at Merchant Fund Express for owners waiting on an SBA decision or who were declined. Amounts run from $5,000 to $5,000,000, and credit scores from 500 are considered.

A standard review uses 3 to 4 months of business bank statements, ID, a voided check and a short application. Same-day decisions are common on complete files, with funding often the next business day, but timing is never promised. Service is in English and Spanish. When you are ready, apply with Merchant Fund Express.

Related

Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 16, 2026.

Frequently asked questions

Does Merchant Fund Express offer SBA loans?

No. SBA loans come from banks, credit unions and approved lenders. MFE reviews alternative and bridge funding, such as merchant cash advances and working capital, that some owners use while an SBA application is pending or after a decline.

How long does an SBA loan take?

Usually weeks to months. The timeline depends on the program, the lender, how complete your paperwork is and whether real estate or appraisals are involved. Plan around the long end of what your lender quotes.

How are SBA loan rates set?

Typically as a base rate plus a spread, with the maximum spread capped by SBA rules. Your lender sets the exact rate inside those limits. Ask for the rate, fees and total cost in writing.

What is the difference between 7(a) and 504?

7(a) is general purpose and can cover working capital, equipment and buying a business. 504 is focused on long-term fixed assets like real estate and large equipment, with a different lender structure.

Is an SBA microloan right for a new business?

It can be. Microloans are smaller and are made through nonprofit lenders that often work with newer businesses. Expect to show a plan and, in many cases, take part in training or coaching.

Two next steps, whichever comes first

Need capital? Merchant Fund Express reviews your file. Need customers to find you? We build the website.

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