Run your numbers
Why SBA payments are lower
SBA loans spread repayment over long terms, often 10 years for working capital and equipment and up to 25 years for real estate, which keeps each monthly payment small.
The trade-off is time: SBA loans take weeks to months to close and need more documentation. Rates and fees change with the prime rate and SBA rules, so confirm the current figures with the lender or SBA.gov.
Read SBA loans through ROI Funder for timelines.
When to bridge while you wait
If the SBA timeline is too slow for the opportunity, a short-term product can cover the gap and be paid off when the SBA loan closes.
Model the bridge cost with the short-term loan calculator and compare it with the cost of waiting, as in the cost of waiting to buy equipment.
Frequently asked questions
Are SBA rates fixed?
Many SBA 7(a) loans are variable and tied to the prime rate, while others are fixed. Ask which applies before you compare.
How long does an SBA loan take?
Usually several weeks to a few months, depending on the lender, the loan size and how complete your documents are.