The loan must be personally guaranteed by any owner who holds 20% or more ownership.

The 7(a) is one of the most flexible SBA loans. You can use it to: Buy land Cover construction costs Buy or expand an existing business Refinance your existing debt Buy machinery, furniture, supplies, or materials There are two types of SBA 7(a) loans: SBA 7(a) Standard and SBA 7(a) Small Loan. They have similar rates and terms, but the Small Loan is capped at a maximum loan amount of $350,000. For SBA 7(a) loans under $350,000, the SBA lender will require collateral of all business assets, no matter how small. No personal collateral will be required. Personal collateral will almost always be required for loans over $350,000 or higher. If you’re looking for a large amount of money, you can access a 7(a) loan for up to $5 million—if you meet all the qualification requirements.

The Expedited SBA loan is the best option for those who need cash quickly. Unlike other SBA loans that have a slower review process, applications for the Expedited SBA loan are reviewed within 36 hours. However, it can still take at least 30 days to receive funding for your SBA Express loan. With an Expedited SBA Loan, you can finance up to $500,000. If your loan amount exceeds $25,000, your lender may require you to secure your loan with collateral. This loan can be used for working capital (with a 5–10-year term), a line of credit (with a 7-year term), or a commercial real estate loan (with a 25-year term).

SBA Express loans, which are processed faster and have lower loan limits and slightly higher interest rates, are part of the 7(a) loan program.

You can use the funds for most business purposes, including: Working capital Equipment purchases Inventory Real estate (limited) Business expansion

Eligible debts include: High-interest business loans Balloon payments or demand notes Short-term lines of credit Owner-occupied commercial real estate loans

Lower interest rates Longer repayment terms Improved monthly cash flow Fixed-rate options (504 loans) Consolidation of multiple debts

Generally, no. Only business-related debt is eligible, and it must have been used for business purposes.

There are two SBA programs that allow refinancing: the SBA 7(a) and the SBA 504. The SBA 7(a) allows you to refinance most business debts and working capital up to $5 million. The SBA 504 loan allows you to refinance commercial real estate and equipment up to $5.5 million.

To refinance, you’ll need to apply through your SBA loan lender, demonstrating a strong financial profile and an improved business outlook since the original loan. Refinancing is available for qualified borrowers and can help reduce monthly payments or extend terms, but approval depends on lender policies and SBA guidelines.

Yes. SBA loans can fund ground-up construction, as long as the property will be owner-occupied.

Your business must occupy at least 51% of the property for SBA eligibility.

A Commercial Real Estate SBA Loan is a government-backed loan designed to help small businesses purchase, build, renovate, or refinance owner-occupied commercial property. These loans are partially guaranteed by the U.S. Small Business Administration (SBA), making them more accessible and affordable than traditional commercial loans.

The 7(a) is one of the most flexible SBA loans. You can use it to: Buy land Cover construction costs Buy or expand an existing business Refinance your existing debt Buy machinery, furniture, supplies, or materials There are two types of SBA 7(a) loans: SBA 7(a) Standard and SBA 7(a) Small Loan. They have similar rates and terms, but the Small Loan is capped at a maximum loan amount of $350,000. For SBA 7(a) loans under $350,000, the SBA lender will require collateral of all business assets no matter how small. No personal collateral will be required. Personal collateral will almost always be required for loans over $350,000 or higher. If you’re looking for a large amount of money, you can access a 7(a) loan for up to $5 million—if you meet all the qualification requirements.

No. SBA loans cannot be used for passive income properties or purely rental real estate.

SBA 504 loans can be a bit more complicated than 7(a)s. Because you must use a 504 to fund a specific fixed asset, a thorough examination of your project costs will come into play. When your loan is funded, the lender will initially cover 50% of your costs and the SBA will cover 40%, which means that you’re responsible for covering at least 10% right off the bat. You’ll also be required to personally guarantee at least 20% of the loan. You must use an SBA 504 loan to finance fixed assets, although some soft costs can also be included. Examples of qualifying projects include: Buying an existing building Building a new facility or renovating an existing facility Buying land or making land improvements such as grading, landscaping, and adding parking lots Buying long-term machinery There are some cool perks to the SBA 504 loan. For example, you’ll benefit from 90% financing, longer amortizations, no balloon payments, and fixed interest rates. To qualify for an SBA 504 loan, your business must have a tangible net worth of less than $15 million and an average net income of $5 million or less for the two years before your application.

There are two SBA programs that are able to cover commercial real estate purchases. SBA 504 Loan – Primarily for fixed assets like real estate and equipment. Up to $5.5 million. SBA 7(a) Loan – More flexible, can also be used for working capital, up to $5 million.

To effectively utilize a business term loan, align it with your long-term goals by investing in areas that promote growth, such as expanding operations, purchasing assets, or entering new markets. Carefully calculate the full cost, including interest and fees, to ensure the investment remains profitable. Structure loan repayments to match your business's cash flow cycle, preventing cash flow issues. Focus on using the loan for activities that directly contribute to revenue generation and expansion, ensuring the loan not only pays for itself but also supports your business’s growth strategy.

Business term loans provide an upfront loan amount that you repay in fixed installments (monthly, weekly, or bi-weekly) over a set loan term, typically ranging from 1 to 10 years.

Business term loans can be used for: Expanding operations Purchasing equipment or inventory Hiring staff Refinancing debt Marketing and advertising

Yes there are three types of term loans short-term, medium-term, and long-term. Short-Term Business Loans Typically repaid within 1 to 3 years, short-term loans are ideal for quick capital needs, such as managing cash flow or covering seasonal expenses. They usually have higher interest rates but faster approval and funding. Medium-Term Business Loans Repayment terms generally range from 3 to 5 years. These loans are used for moderate business expenses, such as equipment purchases or expansion projects. Interest rates are typically lower than short-term loans. Long-Term Business Loans These loans are repaid over a period of 5 to 10 years and are best for large investments like real estate or significant business expansions. They tend to have the lowest interest rates but may require more stringent qualifications.

Common misuses of business term loans include overextending credit by borrowing more than the business can realistically repay, which can lead to financial distress and damage creditworthiness, affecting future lending opportunities. Another misuse is ignoring the loan’s terms and conditions, such as penalties for late or early payments, which can significantly increase the overall cost or reduce loan flexibility. Failing to account for the impact of interest rates is also a risk, especially if the loan has a variable rate that could increase the total cost of borrowing if rates rise. Finally, using term loans for routine operating expenses can be detrimental, as it may mask underlying financial issues rather than address them, potentially harming the business's liquidity and long-term sustainability.

Some lenders offer unsecured business loans (no collateral required), while others may require collateral such as real estate, equipment, or business assets.

7(a) Loan – General-purpose, most common 504 Loan – Real estate and large equipment Microloan – Small loans up to $50,000 Expedited SBA– Faster approval, up to $500,000

Yes, SBA loans must be paid back. When a borrower agrees to an SBA loan agreement, they agree to pay back the loan principal with interest. SBA grants, however, don’t have to be paid back.

Yes, the interest on SBA loans is generally tax-deductible as a business expense. Business owners can deduct interest payments from taxable income, which may reduce their overall tax liability, though it’s best to consult a tax professional for specific guidance.

SBA 7(a) loans are the most common type of SBA loan. These loans go up to $5 million and can be used for working capital, to refinance debt, or to buy a business, real estate, or equipment. Two popular loans, the SBA Express Loan and SBA Advantage Loan, are part of the 7(a) loan program. SBA 7(a) loans are right for most businesses looking to finance their working capital needs. These loans are what most people are referring to when they ask about SBA loans and can be used for almost any business purpose. SBA loans are popular because of their long repayment terms and low interest rates, which make 7(a) loans one of the most affordable working capital solutions.

No, but they are backed by the US government. Private lenders are responsible for disbursing the entire loan amount to the borrower, and the US government only gets involved if the borrower defaults on the SBA loan. Depending on the loan amount, the SBA may insure up to 85% of the loan, which equates to less risk for lenders. This reduced risk means that lenders can offer lower interest rates.

The CDC/SBA 504 loan program provides SBA loans to small businesses looking to buy or build owner-occupied commercial real estate. The program pairs two lenders together to fund these projects, a bank or traditional lender and a CDC. The bank lends up to 50 percent, and the CDC lends up to 40 percent while the remaining 10 percent of the project’s costs come from the borrower, typically in the form of a cash down payment. CDC/SBA 504 loans require that the business occupy at least 51 percent of the commercial space. While this is a great opportunity to rent out 49 percent of your new building to tenants, it’s only right for companies that actually expect to occupy the space themselves. It’s also only right for small U.S. businesses that meet the SBA’s basic eligibility requirements, such as being for-profit.

When compared to other financial products available to small businesses, SBA loans can be considered the most difficult to get, mainly because of the eligibility requirements and application length. With underwriting, most lenders can take up to 3 months to approve or deny an SBA loan. With Lendio’s special application process and dedicated SBA team, time to funds can be reduced to as fast as two weeks.

The funds can be used for: Acquiring a business Purchasing inventory and supplies Buying real estate or equipment Refinancing debt Working capital

One drawback of the standard SBA 7(a) loan is that the application process can take months. In order to address this problem, the SBA offers an expedited processing service called the SBA Express Loan, which guarantees a response to an application from the SBA within 36 hours. (Note: this means the SBA will notify your lender within 36 hours if your application has been approved, but it may take significantly longer for your lender to process and fund your loan.) The SBA Express Loan generally follows the same guidelines as the standard SBA 7(a) loan, but the maximum loan amount is $350,000, and only select lenders are qualified to participate. The SBA guarantees a maximum of 50 percent for SBA Express loans, which means the interest rates on an SBA Express loan can be a bit higher than other 7(a) loans.

A business line of credit is very flexible and can be used for any business purpose. It’s often used by seasonal businesses to cover operations during slower months, for example.

You can obtain a revolving line of credit without needing collateral. This type of credit is called an unsecured line of credit, and it does not require you to put up any collateral. However, it can be more expensive due to higher interest rates. Lenders take on a greater risk when lending unsecured funds, which is why they charge higher rates of interest.

You may have a project that could benefit from other types of small business loans beyond your business line of credit.

A revolving line of credit is a flexible financing option that provides businesses with ongoing access to funds. Here are its essential characteristics: Credit Limit: Lenders set a maximum borrowing amount based on creditworthiness and financial health. Businesses can access funds as needed, up to this limit, ensuring financial flexibility. Flexible Access to Funds: Withdraw funds anytime, repay, and borrow again without reapplying—ideal for managing fluctuating expenses and cash flow. Interest on Borrowed Amounts: Interest accrues only on the funds you use, not the total credit limit. Rates are often variable, meaning they can change with market conditions. Repayment Terms: Monthly payments typically include interest and a portion of the principal. Paying more than the minimum or clearing the balance reduces interest costs and strengthens business credit. Multiple Access Methods: Funds can be accessed through bank transfers, checks, or a linked card, ensuring quick and convenient financial support. Emergency Business Funding: Acts as a financial safety net for unexpected expenses, providing businesses with a reliable backup plan. Cash Flow Stability: Helps businesses navigate seasonal fluctuations and maintain steady operations by bridging income gaps. Project-Based Financing: Supports business growth by funding projects with uncertain costs, allowing for strategic investments without upfront financial strain.

A small business loan is a lump sum of money that is given to the borrower upfront and repaid over time with interest. It is ideal for one-time investments or larger expenses. A line of credit, on the other hand, allows the borrower to access a predetermined amount of funds as needed and only pay interest on the amount used. It’s better suited for recurring or ongoing expenses.

Yes, you can use the Section 179 tax deduction for equipment financing for your business. This write-off allows you to deduct the entire purchase price of the equipment you purchased in the qualifying year. A good accountant will ensure that all your expenses are accounted for and deducted correctly.

An equipment loan could make sense for a small business, depending on the nature of the equipment, its useful life, and whether or not the intention is to keep it as a long-term asset. Because in some situations, a lease can cost more than a loan, many businesses choose to finance the purchase of equipment rather than lease. Additionally, the entire lease payment amount may not be tax deductible if your lease terms include any provision allowing you to own the equipment at the end of the lease. You’ll need to consult with your accountant or financial advisor to see if this is the case for your situation.

Getting an equipment lease or financing can help you fund a variety of business needs. This financing solution can be used for things like: Vehicles Heavy machinery Restaurant appliances Medical equipment Office furniture Technology systems Regardless of your company’s industry, exploring your equipment finance options could help the success of your business. Plus, equipment lenders usually report to business credit. The more business credit you build the greater opportunity you have in the future to receive the best rates and terms for the money you receive and increase your business’s ability to receive future loans without a personal guarantee.

Equipment financing is specifically designed for acquiring business equipment, covering a wide range of assets such as office technology, furniture, industrial machinery, and commercial vehicles. Many financing options provide up to 100% of the equipment’s cost, though some may require a down payment, helping businesses manage cash flow more effectively. The financed equipment itself usually serves as collateral, minimizing risk for lenders and simplifying the approval process. Additionally, equipment financing offers tax benefits, as payments may be deductible as business expenses, and businesses can take advantage of equipment depreciation for further financial savings.

The largest difference between an equipment lease and an equipment loan is that an equipment lease has a fixed term, in which you pay a monthly rental fee, with no prepay benefits, and an equipment loan can be paid off at any time with any remaining interest wiped clean.

A working capital loan is money borrowed to finance day-to-day operations of the business. This includes fixed regular expenses such as payroll, office expenses, and equipment purchases.

To make the most of a working capital loan, businesses should prioritize high-ROI projects, directing funds toward initiatives that yield strong returns, such as expanding product lines, enhancing marketing efforts, or investing in cost-saving technology. Improving inventory management is another key strategy, as optimizing stock levels helps prevent cash from being tied up unnecessarily. Additionally, businesses should streamline accounts receivable by enhancing invoicing and collection processes to accelerate cash inflows and maintain liquidity. Regular monitoring and forecasting of cash flow are crucial for making informed financial decisions and ensuring optimal working capital utilization. Finally, businesses can leverage their financial flexibility to negotiate better terms with suppliers and partners, strengthening their overall financial position.

Your can secure a working capital loan as quickly as 24 hours after you have submitted your application and last 4 months of business bank statements.

One of the most common misuses of working capital is overleveraging—taking on more debt than the business can reasonably manage. Even if a lender offers more funding than needed, excessive borrowing can create financial strain and repayment difficulties, particularly for small businesses and startups. Another mistake is misusing funds by allocating them to long-term investments or non-essential expenses rather than short-term operational needs. Maintaining financial discipline ensures that working capital serves its intended purpose of sustaining and growing the business. Additionally, failing to monitor the Debt Service Coverage Ratio (DSCR) can be problematic. This ratio measures the company’s ability to repay debt using its current revenue, and neglecting it can lead to instability in managing loan obligations.

Nicholas Orchano discusses assisting a restaurant owner in Washington with funding on two occasions. He recounts their initial meeting, the client’s financial needs, the tight funding timeline, and how he successfully secured $60,000 in working capital to support the business.

Cristian Piña shares how he secured funding for an autobody shop in North Carolina. He discusses his initial interaction with the client, guiding them through the alternative lending space, and recommending a tailored program to support the shop’s growth and long-term stability.

Anthony Diaz reflects on his first equipment funding deal, detailing how he secured financing for his client and the unique aspects of equipment funding compared to other options.

Blake Fiorito returns to discuss helping a cleaning services company in California secure additional funding for upcoming projects. He reflects on his initial meeting with the client, the specific funding needs, and the challenges the client faced in securing financing.

Emilio Arguello breaks down a recent transaction for a technology retail store in Maryland. He explains the reasoning behind recommending a working capital loan to finance inventory procurement, emphasizing how this flexible funding solution aligned with the client’s operational demands.

Rio Pampallona, a senior financial advisor at Capital Infusion, discusses securing an SBA loan for an architecture firm in Missouri. He explains how he facilitated pre-approval through a prequalification screening and successfully obtained the longer terms and lower interest rate the client sought.

We provide a range of financing options, including equipment financing, business term loans, working capital loans, and revolving lines of credit. Our team can help you determine which solution best suits your Canadian business needs, ensuring you get the right support to grow.

Your Canadian business could secure financing within just 24 hours after submitting the necessary documentation, providing you with fast, efficient access to the funds you need to grow.

Yes, we require you to fill out our online application and submit 4 months of business bank statements.

Erik Anderson shares insights into a recent funding deal for a country club in Arizona facing seasonal cash flow challenges that disqualified it from traditional bank financing. He explains why banks often decline seasonal businesses and outlines the creative funding solution he used to secure the necessary capital, ensuring the club’s operational stability.

Rio Pampallona shares the story of helping a California doctor secure funding. He recounts the client’s funding requirements, and the rapid turnaround for receiving the funds. Rio explains how the successful experience led the client to return months later for additional financing to expand the practice. He details how he structured a line of credit and a term loan to meet the client’s growth needs.

Ray Ortega, a senior advisor at Capital Infusion, discusses his four-year partnership with a construction company, during which he helped secure $2 million in working capital. He highlights how he provided strategic financial guidance, and contributed to the company’s growth.

Rio Pampallona shares the story of helping a California doctor secure funding. He recounts the client’s funding requirements, and the rapid turnaround for receiving the funds. Rio explains how the successful experience led the client to return months later for additional financing to expand the practice. He details how he structured a line of credit and a term loan to meet the client’s growth needs.

Blake Fiorito, an advisor at Capital Infusion, shares insights into a recently funded event-planning business in Puerto Rico. Blake outlines the type of financing sought, the tailored solution provided, the client's decision-making process, and the swift turnaround in securing the funds.

Ivan Ortega, a senior advisor at Capital Infusion, reflects on his two-year relationship with a construction company in Nevada. He recounts their first meeting, the client’s initial funding needs, and a competing offer that fell short. Ivan explains how he secured $300,000 in financing when a competitor could not, establishing a lasting partnership built on trust and results.