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Getting approved for an SBA loan is a big step and a huge relief for many small business owners. But approval doesn’t mean funds in hand. This guide breaks down what happens next, so you can stay ahead of the process and avoid delays.

If your SBA loan was just approved, take a moment to celebrate. You’ve passed the biggest hurdle in the process! But before those funds land in your account, you’ll need to complete one more important stage. SBA loan closing.

This stage is often misunderstood, especially by first-time borrowers. That’s why we believe it’s essential to provide small business owners with a clear understanding of what comes next.

So, in this guide, we’ll walk you through what happens after approval, what documents you'll need, and how long closing typically takes, so you can stay ahead and put your capital to work without delay.

Why SBA loans take time to close

SBA loans take longer to close than traditional loans because there’s more red tape. Since they’re partially backed by the government, lenders have to check every box (collateral, permits, compliance paperwork, etc.) before the funds are released.

Borrowers can support this process by staying proactive and organized, for example, by responding promptly and keeping documents up to date. This goes a long way towards avoiding unnecessary delays and keeps closing on track.

Please read our guide on what an SBA loan is to better understand how they work and why the closing process is more involved.

What happens after SBA loan approval?

After your SBA loan is approved, your lender will send over a Loan Commitment Letter. This lays out what needs to happen before closing can move forward, and usually covers:

  • How much you’re approved to borrow, and at what rate
  • The repayment plan you’ve agreed to
  • Any collateral you’ll need to provide
  • Additional requirements (e.g., insurance, permits, or licenses) that must be in place before funding

It’s worth going through this letter carefully. If anything looks off or unclear, ask your lender now rather than later. A quick conversation upfront can save you time and frustration down the line.

If you want to get a head start on your prep, read our guide on how business loans and taxes work to make sure you’re set up for tax season.

Key steps in the SBA loan closing process

The SBA closing process is pretty straightforward once you know what’s coming. While the exact steps vary depending on your loan and business, most borrowers go through a similar checklist:

1. Document collection and verification

Lenders often ask for fresh copies of key paperwork, even if you already submitted them earlier. This is because they need to confirm that your business still matches the terms of your approved loan.

In light of that, expect to resend things like:

  • Personal and business financial statements
  • Business licenses, permits, and insurance certificates
  • Proof of business structure (such as Articles of Incorporation or an LLC Operating Agreement)
  • Lease agreements or property-related documents (if real estate is part of the loan)

If anything is outdated or missing, your lender may pause the process. So, gathering these items in advance helps keep things on track.

2. SBA-specific documentation

After reviewing your paperwork, your lender will move on to the final SBA forms:

SBA loan authorization: This spells out the terms, things like the loan amount, interest rate, repayment schedule, collateral, and any extra conditions attached.

Proof of flood insurance (if applicable): If your loan involves real estate in a designated flood zone, flood insurance must be in place before closing. The policy must meet federal standards and name your lender (or the SBA) as the loss payee.

Environmental due diligence: If the loan includes commercial real estate (especially properties with past or current uses that may pose environmental risks), your lender may require a Phase I Environmental Site Assessment to identify any concerns.

Certification of use of proceeds (SBA form 1050): This form is required for all 7(a) loan disbursements. You and your lender must complete it at closing to confirm how funds will be used, consistent with the loan authorization. Supporting documentation (like invoices or wire confirmations) may also be required.

Other SBA forms and certifications: Depending on your loan type and business situation, you may be asked to complete additional documents, such as:

  • SBA Form 159 (if you paid a broker or agent)
  • IRS Form 4506-C (to verify business tax returns)
  • Hazard insurance documentation (for collateral)
  • Borrower certifications confirming no material changes since loan approval.

3. Legal and compliance requirements

Once the SBA-specific paperwork is out of the way, your lender will move on to the legal checks to confirm that your business is on solid legal ground and that everything meets SBA program rules.

You may be asked to:

  • Sign legal documents that reflect the final loan terms
  • Show that you’ve invested some of your own money into the business
  • Provide proof that your location complies with zoning laws or environmental rules
  • Back the loan with a personal guarantee or collateral

These steps are all about protecting both you and your lender while keeping everything above board.

Since SBA loans often require personal guarantees or assets as collateral, it’s worth understanding what happens if you default on an SBA loan and how to protect yourself.

4. Lender due diligence and final review

Right before closing, your lender will go over the details one last time to make sure everything lines up before funds are released. That could mean:

  • Taking a second look at the title report, especially if real estate is involved
  • Making sure all the collateral paperwork is in the file
  • Following up with any lingering questions from underwriting

It’s routine, but important because it’s how lenders protect both sides before the loan goes live.

5. Signing the closing documents

This is the part where everything becomes official. You’ll go over the final loan agreement and sign documents like the promissory note, personal guarantee, and security agreement.

However, if real estate is part of your loan, there’s usually extra paperwork involved, like a deed of trust or lien filings. Some of those documents may need to be notarized. But don't worry, your lender will tell you what’s needed and when. These days, many lenders offer digital signing options to make things easier

6. Disbursement of funds

After you’ve signed all the paperwork and your lender has done a final review, the funds can be released.

How that happens depends on your loan and what it’s being used for:

Lump sum: For some loans, such as those primarily for working capital or refinancing existing debt, the full loan amount may be disbursed all at once directly into your business bank account.

In stages (draws): For projects involving construction, major renovations, or phased equipment purchases, funds are typically released in stages. This "draw" process allows the lender to monitor project progress and verify that funds are used appropriately at each phase.

Direct to third parties: Sometimes, the funds don’t go straight into your account. Depending on your loan terms, the lender might send the money directly to vendors like equipment suppliers or business sellers, or place it in an escrow account managed by a title company. This helps make sure the money gets used exactly as approved.

The typical timeline for fund disbursement is generally within 7–21 business days after the loan closing documents are signed. While some lenders, particularly those with highly streamlined or digital processes, may be able to release funds faster, it's prudent to anticipate this timeframe.

Get ready to put your capital to work

Once you close, the hard part is behind you. Now it’s time to focus on growth. It doesn't matter whether you’re purchasing new equipment, expanding to a second location, or managing seasonal cash flow; your loan is likely the key to moving your business forward.

Interested in a SBA loan? Lendio stays in your corner every step of the way, offering tools, expert guidance, and support when it matters most. If you're planning your next big move, our team is ready to help you make it happen. Start your SBA loan application today.

SBA loans are one of the most popular ways for small business owners to secure affordable financing. Features like low interest rates and extended SBA loan repayment terms make funding more accessible, but they also create high demand, so competition for loan approval can be steep.

The loan application requires careful attention to detail. Accuracy is critical, and you’ll need to follow a clear set of steps. Otherwise, a single mistake could derail the process, costing you time and potentially leading to a loan denial.

Understanding exactly how to get an SBA loan approved and the top application mistakes to avoid could be the difference between securing the funds you need and starting over from scratch. Here’s what you need to know.

SBA loan applications require extra attention.

The SBA loan application process is more detailed than many expect. SBA financing has stricter requirements, leading to more paperwork and additional layers of review.

It’s important to note that the SBA does not issue loans directly. Instead, it partners with approved banks, credit unions, and online lenders that follow SBA guidelines for evaluating and processing applications.

The process typically starts with gathering financial documents, completing SBA-specific forms, and outlining a clear plan for how you’ll use the funds. Then, the lenders are required to verify every detail of your application and make sure your business is a solid credit risk. To pass this examination, it’s important to submit a complete, accurate, and well-documented application.

Common SBA loan application mistakes to avoid.

Even businesses with solid backgrounds and strong credit profiles can sometimes get tripped up during the SBA loan application process. Here’s a look at some of the most common mistakes business owners make, and how to avoid them.

Incomplete or disorganized documentation.

Lenders need a full picture of your business before they can approve your loan, so you’ll need to provide every requested piece of documentation. This includes:

  • SBA Form 1919
  • Recent tax returns
  • Financial statements
  • Your business plan
  • A clear breakdown of how you’ll use the funds

Failing to provide these items can slow down your approval and could stop it altogether. Avoid this common mistake by creating a checklist and reviewing everything with a trusted advisor before hitting submit.

Underestimating the importance of credit.

When you’re applying for a business loan, your personal credit doesn’t matter—right? Actually, when you’re dealing with SBA loans, that’s not the case. Your personal credit history helps lenders evaluate risk, so that’s typically one of the first things they’ll look at. Make sure you’re prepared by reviewing your most recent credit report well ahead of time. This can help you identify errors or other issues that need to be addressed before you apply.

Overstating financial projections or revenue.

It’s tempting to present big growth numbers, especially when you’re excited about the direction your business is headed. But if your projections aren’t based on verifiable data or market trends, they can raise red flags. Lenders want to see realistic, well-supported forecasts, so be honest about your revenue. Back up your projections by explaining your assumptions and showing that while your goals are ambitious, they’re also grounded in reality.

Lack of clear loan purpose.

SBA lenders want to know exactly where the money is going and how it will help your business grow or stabilize, so vague or inconsistent explanations for how you’ll use the funds could raise more red flags.

The more specific your answers, the better. Whether you’re planning to use the funds for payroll, equipment, or working capital, make sure you can show that each dollar is tied to a clear business goal. This shows that you’ve given it plenty of thought and will use the money to make smart business moves.

Ignoring debt-to-income or debt-service coverage ratios.

Make sure you’re realistic about how much debt your business can afford to repay. Before approving a loan, SBA lenders look closely at your debt-to-income (DTI) and debt-service coverage ratio (DSCR). These calculations help assess your ability to handle an additional loan. If the numbers don’t make sense, they may deny your application, even if everything else checks out.

Before submitting your SBA loan application, carefully run the numbers and make sure the amount you’re requesting aligns with what your business can reasonably support.

Not understanding the SBA loan type you’re applying for.

Applying for the wrong type of SBA loan can delay your application or lead to a mismatch in funding. For example, an SBA 7(a) loan may work well for general business needs, while a 504 loan is better suited for purchasing real estate or equipment. And if your business is fairly new and you meet the requirements, you may benefit from applying for an SBA Microloan instead.  

To avoid this mistake, take the time to research your options or meet with a loan advisor who can help you choose the program that best fits your business goals.

Skipping the business plan (or submitting a weak one).

A strong business plan shows lenders where your business is headed and how you’ll get there. Generic, outdated, or incomplete plans can lead lenders to believe you haven’t fully thought through your strategy or aren’t committed to the long-term success of your business.

Creating a robust business plan is well worth the time and effort it requires. Make sure your plan includes your current financials, clear growth strategies, and a thorough competitive analysis. Demonstrating that your business plan aligns with the loan request helps lenders see that you’re thinking strategically and ready to use the funds with purpose.

Strengthen your SBA loan application.

Once you’ve sidestepped the most common SBA application mistakes, there are a few additional things you can do to make sure your submission is as strong and lender-ready as possible. Taking these steps can help speed up the process and may boost your chances of approval:

  • Stay organized: Keep all of your paperwork in a digital folder so it’s easy to access and update
  • Work with a professional: An accountant or small business advisor may help spot missteps before you submit
  • Be transparent: Most challenges will come up during the review process anyway, so it’s better to be upfront. Let lenders know what you’ve overcome and how your business is stronger because of it
  • Double check everything: Review the SBA’s official borrower checklist and lender guidelines before submitting your application

A complete, well-prepared application shows lenders you’re serious, and may make it easier for them to say yes.

Use the SBA application process to strengthen your business.

SBA loan application mistakes are fairly common. Even experienced business owners can miss a step, but with the right preparation, most errors are avoidable.

The application process is about more than completing paperwork. It’s an opportunity to polish your business plan, get a clear picture of your financials, and build confidence in exactly what you’ll do with the funds. Not only will this level of clarity help improve your chances of approval, but it can also help you run a more successful business.

Take the next step toward reaching your business goals. Explore SBA loan options with Lendio and check your eligibility today.  

The words “flexible” and “financing” don’t seem like they should be in a sentence together. When you think of financing, you may think of a stuffy banker stamping rejections on loan applications. Maybe you think about how your business is stalled in growth because you’ve reached the end of your credit line. It is not often that you think about financing options that are flexible to your needs. They do exist, however. Here are some flexible financing options for your small business.

Does your financing plan account for unexpected losses?

As we have all seen, life is unpredictable. Your business could be performing well, but then revenue may drop off a cliff for outside reasons. Here is where that flexibility will come in handy. The COVID-19 pandemic was terrible for small businesses, and it also shed light on some huge holes in small business finances. Many small business owners turn to personal funds to keep their businesses afloat because they lack cash reserves. If anything, the pandemic taught small business owners the importance of access to flexible financing and being prepared for unforeseen challenges.

Flexible financing options.

Many business owners found they were at risk of breaching their banking covenants with the sudden revenue loss. Some business owners were struggling to meet payroll. Others had to close altogether. To keep the lights on for your business, you either need a large cash reserve or flexibility in your financing. If you have maxed out a bank line of credit, do you have access to working capital from somewhere else? Is your bank willing to extend your credit limit?

Equipment financing

It is worth considering some supplemental financing options to round out your financing plan. Equipment financing is a great option that can unlock working capital to support your business growth. Equipment financing is a loan that you can use for specific reasons, like buying manufacturing gear or any other equipment you need for your business. If you are looking to upgrade your cybersecurity and tools because you have moved mostly remote, equipment financing can cover those costs. This type of financing will be a loan that probably has strict repayment terms, but you can use the money pretty flexibly for your business’s needs. 

Accounts receivable financing.

Accounts receivable financing can help you meet payroll while waiting to collect on your receivables. In simpler terms, the amount of capital you can access is based on the amount of capital you are waiting to collect from your customers. With accounts receivable financing, you can add to your team without the stress of adding to your overhead. Since it’s based on your outstanding invoices, it does not require a high credit score or lengthy time in business, which makes the approval requirements very flexible. This type of financing is similar to a line of credit, but the limit will not be as rigid. Typically, the higher your accounts receivable, the more capital you can access.

Line of credit.

A line of credit gives you some flexibility in drawing capital and repaying it. You don’t have to use all the money, and you only pay interest on the amount you use. Online lenders and traditional banks offer lines of credit, and it’s a great tool to have available if you want a more flexible financing plan.

Did you know? Term loans and lines of credit are offered through small business platforms like QuickBooks Capital leveraging QuickBooks users’ account info. These solutions can be quicker and easier to apply for than a financing option from a standalone funder.

Revenue-based financing

Revenue-based financing—also called a business cash advance— is basically a lump sum of cash that is repaid through daily or weekly withdrawals based on your future earnings. These are typically costly because the interest rates are high. Make sure you read your contract carefully before taking out a cash advance.

Which Flexible Funding Option Is Right for You?

Most of these financing options can work together to round out your financial plan. For example, you can use accounts receivable financing to cover your payroll and also take out an equipment loan to cover your production tools. You could use a cash advance alongside a line of credit. It is crucial to consider your business and your industry when signing up with a new lender. It’s best to choose a lender that knows your industry and can offer solutions to your unique financing challenges. Ultimately, your financing plan should include some flexibility to account for sudden gains or sudden losses.

Advertising Disclosure: Lendio may provide compensation to the entity who referred you for financing products and services listed on our site. This compensation may impact how and where certain products and services are offered to you. We may not list all financing products and services available to you. The information provided by Lendio is intended for general informational purposes only and should not be construed as professional tax advice. Lendio is not a tax preparer, law firm, accountant, or financial advisor. Lendio makes no guarantees as to the completeness, accuracy, or reliability of the information provided. We strongly recommend that you consult with a qualified tax professional before making any decisions. Reliance on any information provided by Lendio is solely at your own risk, and Lendio is not liable for any damages that may result from the use or reliance on the information provided.

Presented by QuickBooks Capital 

This article is presented in partnership with QuickBooks Capital, helping small businesses access flexible financing when it’s needed most.

Financing a seasonal business isn’t easy. You need up-front capital to prep for the busy season, and then you need ongoing cash to keep up with mid-season expenses and unexpected slowdowns. For many business owners, relying on sales alone isn’t sustainable.

That’s where seasonal financing comes in. With the right solution, you can cover your bases, seize opportunities, and stay steady through the ups and downs. And when you plan ahead, you’re more likely to secure financing through providers like QuickBooks Capital— where the books you already keep can help give you a decision in minutes and provide you that critical cash flow during your busy season.1

First, we’ll explore how seasonal financing can support your day-to-day operations. Then we’ll dive into six funding methods that work well for seasonal businesses.

How to use seasonal financing.

Whether you're gearing up for opening day or navigating a mid-season rush, seasonal financing can be a powerful tool to keep your business operating smoothly year-round. 

Here are a few smart ways to put seasonal financing to work:

  • Hire extra help to serve more customers during peak periods.
  • Stock up on inventory before the season starts, or replenish mid-season to meet demand.
  • Purchase equipment or make repairs to keep operations efficient.
  • Launch marketing campaigns to build buzz ahead of your busy season.
  • Cover cash flow gaps when income is delayed but expenses can’t wait.

6 financing methods for seasonal businesses.

1. Term loan.

A business term loan gives you a lump sum of capital that you repay over a set period—typically with predictable, fixed payments. It’s ideal for seasonal businesses that need funding upfront to prepare for their busy months, or bridge slower periods.

You can use a term loan to cover large expenses like equipment, inventory, marketing, or payroll. By spreading out your payments, you maintain cash flow flexibility while investing in growth. 

If you’re an Intuit QuickBooks Online user, you may be eligible to apply through QuickBooks Capital for a Term Loan directly from your account. The platform leverages your QuickBooks user account info to make the process quicker and easier to apply for than a financing option from a standalone funder.

2. Business line of credit.

For seasonal businesses, cash needs can change quickly—and that’s where a business line of credit shines. You get approved for a set credit limit and can draw from it whenever you need funds, up to the limit.

A line of credit is especially helpful when you’re not sure how much you’ll need, or when you’ll need a financial safety net for surprise expenses. You only pay interest on the amount you borrow, making it a flexible, cost-effective option for covering instances like payroll, inventory restocks, or last-minute opportunities.

QuickBooks Capital provides access to a Line of Credit that integrates seamlessly with the platform, so you can manage your funds alongside your books. It’s a powerful tool to keep in your back pocket—ready to use when you need it most.

3. Accounts receivable financing.

Making strong sales doesn’t always mean you have cash on hand. If your customers take 30, 60, or even 90 days to pay, you could be stuck waiting on income you need right now.

That’s where accounts receivable financing—also known as factoring—can help. A factoring provider will buy your outstanding invoices and give you an advance (usually 80-95% of their value), then collect payment from your customers. Once paid, they’ll send you the remainder minus any fees.

Sometimes less money today is more valuable than more money tomorrow. If business is booming but your cash is tied up in accounts receivables, this can be a great way to get you the money you need to fund your busy season.

4. Revenue-based financing.

Revenue-based financing (RBF)—sometimes called business or merchant cash advance—provides a lump sum of capital that you repay as a percentage of your daily or weekly sales. That means your payments flex with your business—higher during the busy season, lower during the off-season. 

While this model can offer convenience and fast access to funds, it often comes with higher fees and less transparent terms than traditional financing options. Plus, lenders typically evaluate your recent revenue history, which could impact the accuracy of your true seasonal earning potential assessment.

RBF can be helpful in a pinch, but it’s best used after other options have been examined.

5. Small business credit card.

A business credit card can be a helpful tool for managing day-to-day expenses—like restocking supplies, covering minor repairs, or handling last-minute overtime costs. It functions similarly to a line of credit, offering revolving access to funds with flexible repayment.

Some cards come with generous credit limits (up to $50,000 or more), but they also tend to carry higher interest rates. It’s important to use credit cards strategically and aim to pay off the balance in full each month to avoid costly interest charges.

While business credit cards are great for smaller, recurring purchases, they might not offer enough funding—or favorable terms—for larger seasonal needs. If you’re looking to invest in equipment, marketing, or staffing, financing options through QuickBooks Capital may be a better fit, with term loans and lines of credit tailored to your financial profile.

6. Equipment financing

The right equipment can make or break your peak season. Whether it’s a new register to speed up checkouts, a truck to expand deliveries, or a new espresso machine to handle morning rushes, investing in equipment can help you serve more customers and boost revenue.

Equipment financing is one way to spread out the cost of these purchases over time. In some cases, the equipment itself acts as collateral for the loan, making it easier to qualify without putting up additional assets.

An extra cash register or blender can help you process customers faster, helping you make more sales and capitalize on the peak season. More sales now is worth the monthly expense, especially since you'll own the new piece of equipment moving forward and can sell it at a later point if necessary.

Capitalize on peak season.

When you’re running a seasonal business, timing is everything. With the right financing in place, you can stock up, staff up, and step into your busy season with confidence. Whether you’re preparing months in advance or navigating a mid-season surprise, funding can give you the flexibility to perform at your best.

QuickBooks Capital makes it easy for Intuit QuickBooks customers to apply for term loans and lines of credit directly from the QuickBooks platform, cutting down on paperwork and stress. It’s a simple way to turn your seasonal momentum into long-term growth.

QuickBooks Term Loan and QuickBooks Line of Credit loans are issued by WebBank.

1Subject to eligibility. QuickBooks Online subscription required.

Advertising Disclosure: Lendio may provide compensation to the entity who referred you for financing products and services listed on our site. This compensation may impact how and where certain products and services are offered to you. We may not list all financing products and services available to you. The information provided by Lendio is intended for general informational purposes only and should not be construed as professional tax advice. Lendio is not a tax preparer, law firm, accountant, or financial advisor. Lendio makes no guarantees as to the completeness, accuracy, or reliability of the information provided. We strongly recommend that you consult with a qualified tax professional before making any decisions. Reliance on any information provided by Lendio is solely at your own risk, and Lendio is not liable for any damages that may result from the use or reliance on the information provided.

Presented by QuickBooks Capital 

This article is presented in partnership with QuickBooks Capital, helping small businesses access flexible financing when it’s needed most.

Running a business means staying ready for anything—whether it’s a sudden expense, a slow sales month, or a new growth opportunity you didn’t see coming. That’s where a business line of credit comes in.

A line of credit (LOC) is a flexible funding solution that gives you access to a set amount of capital, which you can draw from as needed. Unlike a traditional loan, you don’t receive a lump sum up front. Instead, you borrow only what you need, when you need it—and repay only what you use.

This makes a line of credit ideal for:

  • Bridging cash flow gaps
  • Covering unexpected costs
  • Investing in short-term growth initiatives

Whether you’re stocking up on seasonal inventory, managing a delay in customer payments, or launching a new marketing campaign, a line of credit gives you the flexibility to act without disrupting your cash flow.

Through QuickBooks Capital, eligible Intuit QuickBooks Online users can apply for a line of credit directly within their account—making it easier to manage both your books and your borrowing in one place.1

Why a Business Line of Credit Works for Small Businesses

Choosing the right type of funding is critical, especially when you need flexibility. Here’s why a business line of credit is one of the most useful financial tools for small business owners.

1. Use it when you need it, repay it when you don’t.

Unlike a term loan, a line of credit gives you access to funds on demand. You can typically draw exactly what you need, when you need it, and repay early without penalties. It’s working capital, on your terms.

2. Only pay for what you use.

You’re only charged interest on the portion you borrow—not your total approved limit. That makes a line of credit more cost-effective than taking out a lump sum loan when you’re unsure how much funding you’ll actually need.

3. Bridge short-term cash flow gaps.

Use a line of credit to smooth over delayed customer payments, cover unexpected repairs, or handle months with three payrolls. It’s ideal for the “in-between” expenses that don’t warrant a full loan, but can’t go on a credit card.

4. Fuel business growth without delay.

Whether you’re launching a new marketing campaign, hiring seasonal help, or taking on a big new client, a line of credit gives you the power to act fast without draining your reserves.

5. Separate your business and personal finances.

Keeping business expenses separate is key for accurate bookkeeping and financial planning. A dedicated business line of credit helps you draw clear lines, while building credit in your business’s name.

6. Build business credit over time.

Making on-time payments and using your credit line responsibly can help improve your business credit profile—potentially unlocking better terms and higher limits in the future.

Did you know? QuickBooks Capital offers access to lines of credit using your QuickBooks account information. This solution is faster and easier to apply for than traditional financing options, factoring in your business performance—with no impact on your personal credit score when you apply.

Your line of credit isn’t just for emergencies, it’s a tool

Here are six strategic ways small business owners can use their credit lines to move faster, think bigger, and grow on their own terms.

Collaborate or co-market with another business

Forming a temporary alliance, like co-hosting an event or running a joint campaign, is a smart way to reach new customers and share costs.

Use your line of credit to cover upfront expenses like design work, contract fees, or shared marketing, without dipping into your cash reserves.

Bring in expert help when it counts

Want to shake up your sales strategy, refine your pricing, or improve operations before peak season? A consultant or coach can bring fresh thinking, but often require upfront fees.

Your line of credit lets you invest in expertise when the time is right, and repay gradually.

Go after government contracts

Landing a government contract can be a game-changer, but the bidding process often requires new tools, team members, and compliance investments—long before you get paid.

A line of credit bridges that cash flow gap and positions your business to compete confidently.

Launch or scale a marketing campaign

Digital advertising, content creation, and campaign testing can be expensive—but often essential. A line of credit allows you to fund your campaign in stages, matching spend to ROI.

With a line of credit, you can launch now, then replenish as results roll in.

Expand through franchising

Franchising is a smart way to grow with lower overhead—but getting started takes time and capital. Legal, training, and marketing costs can add up quickly.

Your line of credit helps you build the foundation, without locking into a fixed loan you may not need all at once.

Fulfill a major contract without draining cash flow

Winning a big job or client is exciting, but delivering can be expensive. A line of credit gives you working capital to hire help, purchase supplies, or ramp up production—then pay it back as revenue comes in.

With QuickBooks Capital you can access a line of credit designed to support your business through these exact kinds of growth opportunities. Applying is fast, flexible, and integrated into your existing QuickBooks account.

What to look for in a business line of credit

A business line of credit can be one of your most powerful financial tools—but only if it works the way your business does. Here are four things to look for when evaluating your options.

Business-based underwriting

Many lenders rely on your personal credit score. Look for a provider that evaluates your business’s actual performance, like revenue trends, transaction history and cash flow.

Speed and simplicity

The application process shouldn’t take days. A modern line of credit should offer a quick, online application, fast approval decisions, and access to funds in a day or two—if not faster.

Flexibility without surprises

Look for a lender that offers clear terms, no hidden fees, and the freedom to draw only what you need. Bonus points if you can repay early without penalty!

Integration with your financial tools

Your line of credit should work with—not against—your financial systems. When your funding lives in the same ecosystem as your bookkeeping, forecasting, and reporting, everything gets easier.

That’s why QuickBooks users appreciate the seamless experience of managing their Line of Credit through QuickBooks Capital, directly within the platform.1

The right line of credit should feel like a financial advantage, not an extra chore. Through QuickBooks Capital, you can apply, access, and manage your Line of Credit without ever leaving QuickBooks. It’s working capital built for real-world business owners.2

Explore QuickBooks Line of Credit and get the flexibility to move when opportunity strikes.

QuickBooks Term Loan and QuickBooks Line of Credit loans are issued by WebBank.

1Subject to eligibility. QuickBooks Online subscription required.

298% of customers are satisfied with the ease of the application process. Based on a QuickBooks Term Loan Customer Survey, February 2025.

Advertising Disclosure: Lendio may provide compensation to the entity who referred you for financing products and services listed on our site. This compensation may impact how and where certain products and services are offered to you. We may not list all financing products and services available to you. The information provided by Lendio is intended for general informational purposes only and should not be construed as professional tax advice. Lendio is not a tax preparer, law firm, accountant, or financial advisor. Lendio makes no guarantees as to the completeness, accuracy, or reliability of the information provided. We strongly recommend that you consult with a qualified tax professional before making any decisions. Reliance on any information provided by Lendio is solely at your own risk, and Lendio is not liable for any damages that may result from the use or reliance on the information provided.

Running a restaurant is a labor of love, but it’s also one of the most capital-intensive businesses there is.

From equipment and inventory, to leasing a storefront or expanding into a second location, having access to reliable funding can make or break your growth.

The Small Business Administration provides restaurant owners with affordable ways to secure the capital they need to launch, expand, or stabilize their operations.

In this guide, we’ll walk you through SBA loan options for restaurants, so you can find the ideal funding option to start, expand, or sustain your business.

SBA loans for restaurants

Two SBA loan programs stand out for restaurant owners:

SBA 7(a) loans because they offer flexible funding that can be used for working capital, equipment, inventory, renovations—or even buying an existing restaurant.

  • Loan amount: Up to $5 million
  • Terms: Up to 10 years for working capital and equipment; up to 25 years for real estate
  • Interest: Variable or fixed, typically prime + 2–3%

SBA 504 loans because they’re built for big-ticket purchases like commercial real estate or large equipment upgrades, while offering long repayment terms and fixed rates.

  • Loan amount: Up to $5.5 million (often more for energy-efficient projects)
  • Terms: 10, 20, or 25 years
  • Structure: 50% bank loan, 40% SBA-backed loan, 10% borrower contribution
  • Interest: Fixed, often below market rates

Each program comes with its own advantages. The key is knowing which loan type fits your exact goals, and what you need to do to put them to work.

Pros and cons of SBA loans for restaurant owners

Why restaurant owners like SBA loans

1. Access to working capital:

Whether you're covering payroll, stocking up on inventory, or managing a seasonal lull, 7(a) loans offer flexible funding that you can put to work fast—with as much going towards working capital as you need.

2. Favorable interest rates and terms:

Because SBA loans are partially guaranteed by the government, lenders can offer lower rates and longer repayment terms than many traditional loans.

3. Support for real estate and equipment purchases:

Need to buy a building or invest in a new kitchen line? The SBA 504 loan is designed specifically for major fixed assets.

What to watch for

1. Slower approval processes:

Compared to online lenders or revenue-based financing, SBA loans can take longer to process—typically 30 to 90 days, depending on your documentation.

2. Heavy documentation:

You’ll need to provide business financials, a plan for the funds, and personal financials. It’ll never be one-click lending.

3. May require collateral or personal guarantees:

Especially for larger loans, lenders may want additional security. It’s something you should be prepared for. Sometimes that requires you to put up personal collateral along with your business.

Which SBA loan makes sense for your restaurant?

Not every restaurant needs a million-dollar renovation. Some just need new fryers. Others are scaling across state lines.

Whatever the case may be, the right SBA loan depends on your stage, your strategy, and how fast you need to move.

Consider the guidance below.

Working capital

Best fit: SBA 7(a)

If you need breathing room between payroll and vendor invoices, SBA 7(a) loans will be your best bet.

The SBA 7(a) loan is a fit here because it allows for unrestricted working capital use (within the flexible terms mentioned above of up to $5 million in funding and repayment terms up to 10 years).

It gives you time to stabilize cash flow without choking your margins.

Real estate purchase, Improvement, or Build

Best fit: SBA 504

If you're planning to buy your building, renovate a commercial space, or build a new location, the SBA 504 loan is what you’ll need.

The 504 loan offers long-term, fixed-rate financing (up to $5.5 million, with repayment terms of 10, 20, or 25 years).

It typically requires just 10% down from the borrower, which makes it easier to preserve working capital while investing in property you’ll own and control.

To get a 504 loan, you’ll need to occupy at least 51% of the property.

Equipment purchase

Best fit: SBA 7(a) or 504

From commercial ovens and refrigeration systems to POS terminals and kitchen hoods, restaurant equipment doesn’t come cheap.

Depending on where you fall on the matrix of time urgency to size of need, you can turn to either 7(a) loans or 504 loans.

If your needs are under $500K or tied to other expenses like working capital, the SBA 7(a) loan provides faster, more flexible funding.

For large-scale or long-life equipment, the SBA 504 offers better fixed rates and extended repayment terms—letting you finance major upgrades without depleting your short-term cash flow.

Inventory purchase

Best fit: SBA 7(a)

You never want to be strapped down at the liberty of your capital when prepping for holidays or seasonal peaks.

The SBA 7(a) loan is the best fit here because it allows for working capital use—including inventory—under the favorable terms we mentioned earlier (up to $5 million in funding and 10-year repayment timelines).

It’s a flexible, low-cost way to keep your shelves stocked and your kitchen moving no matter what.

Furniture or fixture upgrades

Best fit: SBA 7(a)

Need to upgrade your dining room, invest in new booths, or improve your outdoor seating? These improvements often don’t qualify as fixed assets.

The SBA 7(a) loan covers furniture, fixtures, and other soft costs that traditional loans (and 504 loans) may not, and with more favorable terms than other loans that do.

It gives you up to 10 years to repay and the freedom to bundle these upgrades with other expenses like marketing, hiring, or signage.

Expansion (adding a new location)

Best fit: SBA 7(a) or 504

Opening a second (third, fourth, etc.) location is a major milestone, but also a major expense.

The SBA 7(a) loan is ideal if you’re leasing a new space and need flexible capital for improvements, equipment, staffing, marketing, and other launch costs.

If you're buying property as part of the expansion, SBA 504 loans offer longer terms, lower down payments, and fixed-rate financing that protects your cash flow as you grow. As previously mentioned, 504 loans can be used specifically for purchasing real estate.

Buying a restaurant

Best fit: SBA 7(a)

Acquiring an existing restaurant can be a faster route to profitability, but it requires upfront capital and a lender that understands your business model well.

SBA 7(a) loans support full business acquisitions, including goodwill, equipment, and real estate (if applicable).

It’s one of the few programs designed specifically to help entrepreneurs buy an existing business without needing a massive injection of equity.

Using SBA loans to grow your restaurant

The restaurant industry isn’t easy—but the right financing can make life a lot easier for you, and a lot more pleasant for your diners.

SBA loans offer a rare combination of affordability, flexibility, and support. Whether you’re opening your doors or leveling up existing operations, knowing your options is the first step.

Need help finding the right SBA lender—or figuring out what you qualify for? Lendio can help. One application, multiple offers, no guesswork.

The U.S. Small Business Administration (SBA) opens the door to a wide range of opportunities for women looking to launch, grow, or strengthen their businesses. 

Whether you're seeking startup capital, expansion funding, or access to government contracts, the SBA offers programs, partnerships, and loan options designed to help women move forward with confidence.

From funding programs like SBA 7(a) and microloans to specialized initiatives that support women-owned businesses in federal contracting, the SBA can serve as a powerful springboard for female entrepreneurs ready to start and scale their businesses.

Women-owned businesses are one of the fastest-growing and most dynamic forces in the U.S. economy. Here, we’ll take a look at how you can get access to capital, as well as how you can connect to a larger ecosystem of support, education, and long-term growth.

Types of SBA Loans for Women Entrepreneurs

Women business owners have access to the full suite of SBA loan programs

These loans are designed to support small businesses at various stages—whether you're starting out, expanding operations, or investing in long-term assets.

SBA 7(a) Loan Program

The SBA 7(a) loan is the most popular and versatile SBA program. It's commonly used for working capital, equipment purchases, inventory, hiring, refinancing existing debt, or even buying a business.

  • Loan amounts: Up to $5 million
  • Repayment terms: Up to 10 years for working capital, up to 25 years for real estate
  • Interest rates: Competitive, partially backed by the SBA
  • Best for: Established businesses looking for flexibility in how they use funds

SBA Microloan Program

Microloans are smaller loans often distributed by nonprofit community lenders, many of which focus specifically on underserved or underrepresented groups—including women.

  • Loan amounts: Up to $50,000
  • Average loan size: ~$13,000
  • Best for: Startups, early-stage businesses, or entrepreneurs with limited credit history
  • Additional perks: Lenders often provide business training or mentorship alongside financing

SBA 504 Loan Program

The 504 loan is ideal for businesses making large investments in fixed assets—like buying commercial property, renovating a facility, or purchasing major equipment.

  • Loan amounts: Up to $5.5 million
  • Terms: 10, 20, or 25 years
  • Best for: Businesses planning long-term investments in infrastructure or expansion

To recap, here’s a comparison chart of each SBA loan feature. For more information on each loan feature, visit the guides linked below! 

SBA 7(a) Loan Program SBA Microloan Program SBA 504 Loan Program
Maximum Loan Amounts Up to $5 million Up to $50,000 Up to $5.5 Million
SBA Interest Rates 10.5%- 15.5% 8%-13% Typically 3% of loan amount
SBA Loan Terms 10-25 years 10 years 10-25 years

Unique Loan and Grant Opportunities for Female Entrepreneurs

In addition to SBA loans, women entrepreneurs can benefit from alternative funding sources that cater specifically to women-owned or minority-owned businesses, including SBA grants.

CDFIs and Nonprofit Microlenders

Community Development Financial Institutions (CDFIs) are local lenders that prioritize underserved entrepreneurs. 

Many provide microloans, business coaching, and flexible underwriting that makes funding more accessible for women-owned businesses.

Examples include:

  • Accion Opportunity Fund – A national lender supporting women, minority, and low-to-moderate-income entrepreneurs with loans and mentoring.
  • Grameen America – Offers group-based microloans to women in low-income communities across major U.S. cities.
  • LiftFund – Based in Texas and serving the Southeast, LiftFund provides microloans and SBA options for women and minority founders.
  • Women’s Economic Ventures (WEV) – A California-based nonprofit offering up to $50,000 in small business loans and robust business training programs.

Women’s Business Centers (WBCs)

WBCs are SBA-funded resource hubs that provide free or low-cost business advising, training, and access to capital—all tailored to the needs of women entrepreneurs.

Notable centers include:

You can find your nearest Women’s Business Center using the SBA’s WBC locator tool.

Grants and Private Programs

Although harder to get, grants offer another option—especially for women-led ventures focused on innovation or impact. 

Grants don’t require repayment, but they’re often very competitive and come with specific eligibility requirements.

Well-known grant programs for women entrepreneurs include:

Many states and cities offer local or regional grants for women-owned businesses through economic development programs.

Your local Women’s Business Center (WBC) or Small Business Development Center (SBDC) can help you identify grant opportunities in your area.

SBA Programs & Certifications for Women-Owned Businesses

These programs don't provide direct loans—but they significantly expand the opportunities and advantages available to women-owned businesses through training, certification, and access to government contracts.

WOSB Federal Contracting Program

The Women-Owned Small Business (WOSB) Federal Contracting Program helps women gain access to government contracts in industries where women have been historically underrepresented.

  • What it does: Sets aside specific federal contracts for certified WOSBs
  • Eligibility: At least 51% women-owned and controlled; U.S. citizens
  • Certification: Apply via wosb.certify.sba.gov

This program opens the door to millions in federal spending across sectors like construction, cybersecurity, staffing, and professional services.

8(a) Business Development Program

Designed for socially and economically disadvantaged entrepreneurs, the 8(a) program offers support through mentorship, government contracting assistance, and access to business development resources.

  • Length: 9-year program
  • Benefits: Sole-source government contracts, networking, and training
  • Eligibility: Business must be at least 51% owned by an individual who is both socially and economically disadvantaged. Many women qualify.

SBA’s Ascent Learning Platform

Ascent is a free, SBA-backed digital learning platform built specifically for women entrepreneurs. It includes in-depth modules on:

  • Financial strategy
  • Scaling operations
  • Marketing and branding
  • Goal setting

Ideal for business owners who want self-paced training or additional prep before applying for funding.

National Women’s Business Council (NWBC)

The NWBC is an independent federal advisory council that conducts research and advocates for policy that supports women in business. 

While it doesn't offer funding directly, it's a valuable resource for understanding national trends and tapping into the broader network of women-led enterprises.

Navigating SBA Resources as a Woman Entrepreneur

Getting funding is about making strategic use of the resources available to you. So, as you move forward:

  • Use support programs strategically – for example, combine a microloan with free advising from a WBC or pair a 7(a) loan with WOSB certification.
  • Know your numbers – have a business plan, revenue projections, and clear credit profile before you apply.
  • Leverage local resources – WBCs, SCORE mentors, and SBA district offices can help you prep for applications and certifications.
  • Apply through multiple channels – Lendio allows you to compare SBA loan offers from multiple lenders with one application.

With the right strategy and support, the funding you need to grow your business is well within reach.

Whether you’re a seasoned investor or a novice entrepreneur, commercial real estate rates will always be a focal point guiding your investment decisions.

This article will simplify commercial mortgage rates, shedding light on key points of consideration and practical strategies to optimize your investments.

Current commercial real estate rates.

As of July 2025, we're seeing rates that range from about 5.3% to 15%, depending on the asset type and specific circumstances of the loan.

Key elements of commercial real estate rates.

Commercial mortgage rates are determined based on a combination of market factors, property-specific factors, the stance of the lender and borrower, and the loan structure.

Market conditions

Overall market conditions play a role in determining commercial real estate rates. Several macroeconomic factors contribute to rate fluctuations.

Economic factors

Commercial mortgage rates are influenced by broader economic conditions, such as inflation, economic growth, and the overall health of the economy.

Interest rates

The general level of interest rates in the economy—often indicated by benchmark rates such as the prime rate, LIBOR (London Interbank Offered Rate), or the U.S. Treasury yields—can impact the rates offered by lenders.

It's important for borrowers to carefully consider these factors and work with lenders to secure the most favorable terms, based on their financial situation and the specific details of the commercial property transaction.

Property-specific factors

The nature of the property itself will significantly impact mortgage rates, namely property type and location will also impact your final rate.

Property type

Different types of commercial properties may have varying risk profiles, affecting the interest rates. For example, rates for office spaces might differ from those for industrial properties.

Property type Current starting rate
Multifamily loans 5.3%
Mobile home parks 5.5%
Retail 6.5%
Office buildings 6.5%
Industrial properties 6.5%
Self-Storage 6.5%
Medical properties 6.5%
Hospitality properties 7.5%
CMBS loans 6%
Bridge loans 9%

Location

The location of the property can impact rates. Properties in high-demand or economically thriving areas may have lower rates compared to those in less desirable locations.

Borrower's creditworthiness

Your creditworthiness and general financial situation will impact your rate.

Credit score

The creditworthiness of the borrower is a crucial factor. Lenders assess the borrower's credit history, financial stability, and debt-to-income ratio to determine the risk associated with the loan.

Business financials

Lenders may also evaluate the financial health and performance of the business occupying the commercial property.

Loan-to-value (LTV) ratio

The loan-to-value (LTV) ratio is the percentage of the property’s value that you’re looking to finance with the loan.

If you’re looking for a high LTV ratio, it means you’re seeking to borrow a larger portion of the property’s value, which could present a higher risk to the lender. Because of this increased risk, you may find that higher LTV ratios are typically accompanied by higher commercial mortgage rates.

Loan term and amortization period

Rates will also vary based on the length of the loan and the repayment schedule.

Loan term

The length of the loan term can influence the interest rate. Shorter-term loans may have lower rates but higher monthly payments, while longer-term loans might have slightly higher rates but lower monthly payments.

Amortization period

The time it takes to repay the loan (i.e. the amortization period) can also impact the interest rate. A longer amortization period may result in a higher overall interest cost.

Lender's policies and competition

Every lender's rates are impacted by its investment portfolio and competition.

Lender policies

Each lender may have its own criteria and policies, impacting the rates they offer. Some lenders may specialize in certain property types or industries.

Competition

The competitive landscape among lenders can affect rates. Borrowers may get more favorable rates if lenders are competing for their business.

Fixed vs. variable rates

Commercial mortgage rates can be fixed (i.e. unchanging throughout the loan term) or variable (i.e. fluctuating based on market conditions). Fixed rates provide stability, while variable rates may offer initial cost savings but involve more risk. Borrowers should choose the type of rate that aligns with their financial goals and risk tolerance.

SBA 504 loan rates: An option for small businesses.

For entrepreneurs seeking to finance major fixed assets like real estate or equipment, the Small Business Administration's (SBA) 504 loan can be a great option. The SBA 504 loan is known for its competitive and predictable rates, making it a popular choice among borrowers.

Fixed-rate loans under this program are tied to U.S. Treasury bonds, which typically carry some of the market's best rates.

  • The rates for SBA 504 loans are set when the SBA sells the bond to fund the loan. This means borrowers can lock in a low, long-term fixed rate, protecting their business from future interest rate increases. The 10-year Treasury rate as of July 20, 2025 is around 4.4%.

It's also essential to understand that SBA 504 loan rates include two different loans—one from a Certified Development Company (CDC) and one from a bank or other financial institution.

  • The CDC loan, which covers up to 40% of the total project cost, has a fixed interest rate.
  • In contrast, the bank loan, covering 50% or more of the total project cost, can have a variable or fixed rate, depending on the specifics of the agreement.

Remember, despite these attractive rates, it's important to consider all aspects of your financial situation and business goals before deciding on a loan product. Consult with financial professionals to make sure you're making the best choice for your business.

Wrapping up

By familiarizing yourself with the primary elements that influence these rates, and keeping an eye on current market conditions, you’re already on the right path.

Whether you're considering a traditional commercial mortgage or exploring options like the SBA 504 loan, remember that the best choice will depend on your unique financial situation and business goals.

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