Frequently Asked Questions
Everything you need to know about SBA loans, commercial financing, and working with 3A Lending. Can't find your answer? Contact us — we respond within 24 hours.
SBA Loans — General
What is an SBA loan?
An SBA loan is a small business loan partially guaranteed by the U.S. Small Business Administration. The SBA doesn't lend money directly — instead, it sets guidelines for loans made by partnering lenders like banks and credit unions. The SBA guarantee reduces risk for lenders, making it easier for small businesses to access financing with favorable terms, lower down payments, and longer repayment periods.
What is the difference between an SBA 504 loan and an SBA 7(a) loan?
The SBA 504 loan is specifically designed for purchasing fixed assets like commercial real estate and major equipment, offering below-market fixed interest rates with up to 90% financing. The SBA 7(a) loan is more versatile and can be used for working capital, equipment, real estate, debt refinancing, and business acquisitions. The 7(a) program offers up to $5 million with terms up to 25 years, while the 504 program can fund projects up to $5.5 million through a combination of a bank loan, a CDC loan, and a borrower contribution.
How long does it take to get approved for an SBA loan?
3A Lending provides pre-qualification decisions within 24 hours. Full SBA loan approval typically takes 30 to 90 days depending on the loan type, complexity of the deal, and completeness of your documentation. SBA 7(a) loans generally process faster than 504 loans. Working with an experienced SBA lending specialist like 3A Lending can significantly reduce processing time by ensuring your application is complete and properly structured from the start.
What credit score do I need for an SBA loan?
Most SBA lenders look for a personal credit score of 680 or higher, though some programs may accept scores as low as 620. Beyond credit score, lenders also evaluate your business revenue, time in business, industry experience, collateral, and overall financial health. A lower credit score doesn't automatically disqualify you — 3A Lending works with businesses to find the right program for their situation.
What documents do I need to apply for an SBA loan?
Common documentation includes: personal and business tax returns (last 2-3 years), personal financial statement, business financial statements (profit & loss, balance sheet), business plan or summary, bank statements (last 3-6 months), business licenses and registrations, and a schedule of business debt. 3A Lending provides a complete checklist and guides you through the documentation process.
SBA 504 Loans
How much down payment is required for an SBA 504 loan?
The SBA 504 loan program requires as little as 10% down from the borrower. The typical structure is 50% from a conventional lender, 40% from a Certified Development Company (CDC) backed by the SBA, and 10% from the borrower. This low down payment requirement is one of the biggest advantages of the 504 program, allowing businesses to preserve working capital while acquiring commercial property.
What can I use an SBA 504 loan for?
SBA 504 loans can be used to purchase commercial real estate (office buildings, warehouses, retail space, manufacturing facilities), purchase land and construct new buildings, renovate or modernize existing facilities, and purchase long-term heavy equipment. The 504 program cannot be used for working capital, inventory, or debt refinancing (with limited exceptions for refinancing existing 504 loans).
What are current SBA 504 loan interest rates?
SBA 504 loan rates are among the lowest available for commercial real estate financing. The CDC portion (40% of the project) carries a fixed rate tied to U.S. Treasury rates, typically between 5.5% and 7.0% depending on market conditions. The conventional lender portion (50%) may be fixed or variable. 3A Lending helps you secure the best available rates by working with multiple lending partners. Contact us for today's specific rates.
SBA 7(a) Loans
What can I use an SBA 7(a) loan for?
The SBA 7(a) loan is the most flexible SBA program and can be used for virtually any legitimate business purpose: working capital, equipment purchases, commercial real estate, business acquisitions, partner buyouts, debt refinancing, inventory, and leasehold improvements. This versatility makes it the most popular SBA loan program.
What is the maximum SBA 7(a) loan amount?
The maximum SBA 7(a) loan amount is $5 million. For most borrowers, the SBA guarantees up to 85% of loans of $150,000 or less, and up to 75% of loans above $150,000. SBA 7(a) loan terms can extend up to 25 years for real estate, 10 years for equipment, and 7-10 years for working capital.
Are SBA 7(a) loans fixed or variable rate?
SBA 7(a) loans can be either fixed or variable rate. Variable rates are tied to the Prime Rate plus a spread (typically Prime + 1.5% to 2.75% depending on loan size and term). Fixed-rate options are available but may carry a slightly higher rate. In a rising interest rate environment, many businesses are choosing to refinance variable-rate SBA loans into fixed-rate structures to lock in predictable payments.
Equipment Financing
Can I finance 100% of equipment costs?
Yes, many equipment financing programs offer up to 100% financing, meaning no down payment is required. Approval depends on your business credit profile, the type of equipment, and its useful life. The equipment itself typically serves as collateral for the loan, making it easier to qualify compared to unsecured financing.
How fast can I get approved for equipment financing?
Equipment financing approvals can happen as fast as same-day for straightforward applications. Most decisions are made within 24-48 hours. Funding typically occurs within 3-7 business days after approval and documentation completion. 3A Lending works with multiple equipment financing partners to find the fastest path to approval for your business.
Working with 3A Lending
Does 3A Lending serve businesses in all 50 states?
Yes. 3A Lending serves businesses throughout all 50 United States. From our home in Indiana, we process applications remotely and can close loans anywhere in the country. Our lending network gives your business access to competitive rates and programs regardless of your location.
Is there a fee to apply or get pre-qualified?
No. There is no fee to apply or get pre-qualified with 3A Lending. We provide a free initial consultation to understand your financing needs and determine the best loan program for your situation. You only pay standard closing costs if and when your loan closes.
How is 3A Lending different from a bank?
3A Lending is a commercial lending brokerage that works with multiple lenders and SBA lending partners. This means we can shop your deal across our network to find the best rates, terms, and programs for your specific situation — rather than being limited to a single bank's products. We also specialize exclusively in commercial and SBA lending, so our entire team is focused on getting your business funded.
Can I refinance my existing SBA loan?
Yes. If you currently have an SBA loan with a variable interest rate, you may be able to refinance into a lower fixed rate, potentially saving thousands per month. Many businesses that took out SBA loans during or after the pandemic are now paying elevated variable rates. 3A Lending specializes in analyzing your current loan terms and showing you exactly how much a refinance could save. Contact us for a free Loan Health Analysis.
Still Have Questions?
Our lending specialists are ready to help you find the right financing solution for your business.