ClickCease

NEW LOOK, NEW WEBSITE —

Learn More

Small Business (SBA) Loans

Government-backed business financing

An SBA loan can provide essential funding for starting or expanding a business, offering favorable terms and lower down payments than traditional loans.

Submit Interest Form

Small Business (SBA) Loans

The U.S. Small Business Administration helps small businesses get funding by setting guidelines for loans and reducing lender risk. These SBA-backed loans make it easier for small businesses to get the funding they need. Generally speaking, there are two main types of SBA Loans for business members. Learn more about SBA 7(a) and SBA 504 loans below. 

SBA 7(a) Loans

The SBA 7(a) loan program is the most popular loan program offered by the U.S. Small Business Administration (SBA). It provides loan guarantees for a variety of business purposes. There isn’t a single type of 7(a) loan, but rather a categorization based on the loan size and purpose. Here’s a breakdown of the most common types of SBA 7(a) loans:
Submit Interest Form

SBA 7(a) Loan Types

Use of Loan Proceeds

Eligibility requirements

Loan Amounts

Maturity Terms

Interest Rates

Prepayment Penalties

SBA 7(a) Loan Types

Standard 7(a)
  • Loan Amount: $500,001 to $5 million
  • Working capital, equipment, real estate, debt refinancing, & business expansion
Small 7(a)
  • Loan Amount: $500,000 or less
  • Working capital, short-term needs, equipment/machinery, & inventory purchases
SBA Express
  • Loan Amount: $350,000 or less
  • Short-term working capital needs, equipment/machinery, & inventory purchases
  • This option often features a streamlined application process
Additional SBA 7(a) loan types include:
  • Export Express, Export Working Capital, & International Trade
  • CAPLines  (lines of credit) & Veterans Advantage

Use of Loan Proceeds

Loan proceeds can be used for real estate, working capital, debt refinancing, equipment, furniture, changes of ownership, and multiple purpose loans.

  • Acquiring, refinancing, or improving real estate and/or buildings
  • Short- and long-term working capital
  • Refinancing current business debt
  • Purchasing and installation of machinery and equipment
  • Purchasing furniture, fixtures, and supplies
  • Changes of ownership (complete or partial)
  • Multiple purpose loans, including any of the above

Eligibility Requirements

To be eligible, a business must be operational, for-profit, located in the U.S., meet SBA size standards, not be ineligible, unable to obtain credit elsewhere on reasonable terms, and demonstrate creditworthiness with a reasonable ability to repay the loan.

  • Be an operating business
  • Operate for profit
  • Be located in the U.S.

Be small under SBA Size Requirements

  • Not be able to obtain the desired credit on reasonable terms from non-Federal, non-State, and non-local government sources
  • Be creditworthy and demonstrate a reasonable ability to repay the loan

Loan Amounts

  • Most 7(a) loans have a maximum loan amount of $5 million.
  • However, 7(a) loans made under the SBA Express and Export Express delivery methods have maximum loan amounts of $500,000.

Maturity Terms

Maturity loans should have the shortest term based on repayment ability, up to 10 years unless financing long-term assets, with a maximum of 25 years including extensions and additional time for equipment installation or leasehold improvements.

  • The shortest appropriate term, depending upon the borrower’s ability to repay;
  • Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years. The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.
  • A maximum of 25 years, including extensions. (A portion of a loan used to acquire or improve real property may have a term of 25 years plus an additional period needed to complete the construction or improvements)

Interest Rates

  • Interest rates may be fixed or variable
  • The maximum interest rates are based on loan amounts:
  1. $50,000 or less (Base Rate Plus 6.5%)
  2. $50,001 to $250,000 (Base Rate Plus 6.0%)
  3. $250,001 to $350,000 (Base Rate Plus 4.5%)
  4. Greater than $350,000 (Base Rate Plus 3.0%)

Prepayment Penalties

For loans with a maturity of 15 years or longer, prepayment penalties apply when:

  • The borrower voluntarily prepays 25 percent or more of the outstanding balance of the loan
  • The prepayment is made within the first three years after the date of the first disbursement of the loan proceeds

The prepayment fee is:

  • During the first year after disbursement, 5% of the amount of the prepayment.
  • During the second year after disbursement, 3% of the amount of the prepayment.
  • During the third year after disbursement, 1% of the amount of the prepayment.

SBA 504 Loans

Unlike the SBA 7(a) loan program with its various subcategories, the SBA 504 loan program offers a single loan structure. It focuses on financing the acquisition of fixed assets for business growth and job creation. It also pairs a Community Development Corporation (CDC) with a lender and, together, they finance 90% of the loan amount Here’s a breakdown of the key aspects of SBA 504 loans:
Submit Interest Form

Use of loan proceeds

Eligibility requirements

Loan Amounts

Maturity Terms

Interest Rates

Use of Loan Proceeds

The purchase or construction of:

  • Existing buildings or land
  • New facilities
  • Long-term machinery and equipment with a useful remaining life of a minimum of 10 years, including project-related AI-supported equipment or machinery for manufacturing products

Or the improvement or modernization of: 

  • Land, streets, utilities, parking lots and landscaping
  • Existing facilities

A 504 loan  cannot  be used for:

  • Working capital or inventory
  • Consolidating, repaying or refinancing debt
  • Speculation or investment in rental real estate
  • The financing of AI-related working capital, intellectual property, or consulting services soft costs

Eligibility Requirements

To qualify, a business must operate for profit in the U.S. or its possessions, with a tangible net worth below $15 million and average net income under $5 million after federal taxes for the two preceding years.

  • Operate as a for-profit company in the United States or its possessions
  • Have a tangible net worth of less than $15 million
  • Have an average net income of less than $5 million after federal income taxes for the two years preceding your application

Other general eligibility standards include  falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan.

  • Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities. 

Loan Amounts

  • The maximum loan amount for a 504 loan is $5.5 million.
  • For certain projects, the borrower can receive a 504 loan for up to $5.5 million per project, for up to three projects not to exceed $16.5 million total.

Maturity Terms

  • 10-, 20-, and 25-year maturity terms are available 

Interest Rates

Fixed interest rates are pegged to an increment above the current market rate for 10-year U.S. Treasury issues, totaling approximately 3% of the debt, which may be financed with the loan.

  • Fixed Rates
  • Pegged to an increment above the current market rate for 10-year U.S. Treasury issues
  • Totals approximately 3 % of the debt, rate may be financed with the loan

Business Loan Rates

Rates up to date as of July 4, 2024. Rates subject to change without notice.

All Business LoansTermAnnual Percentage Rate (APR)
Commercial Real EstateCall 801-359-9600 to learn moreCall 801-359-9600 for today's rates
Lines of CreditCall 801-359-9600 to learn moreCall 801-359-9600 for today's rates
EquipmentCall 801-359-9600 to learn moreCall 801-359-9600 for today's rates
VehiclesCall 801-359-9600 to learn moreCall 801-359-9600 for today's rates
Small Business (SBA)Call 801-359-9600 to learn moreCall 801-359-9600 for today's rates

Rates and financing are offered based on applicant’s credit worthiness and the term of the loan. Rates quoted are annual percentage rates (APR).

Choose from all of our Business Loans

  • Commercial Real Estate
  • Business Equipment
  • Lines of Credit
  • Business Vehicles
  • SBA Loans
All Business Loans