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SBA Lending

Providing the financial power to fuel your business dreams.

Contact an SBA Expert

SBA Lending

Providing the expertise and resources to fuel your business growth, backed by industry-recognized experts.

CONTACT AN SBA EXPERT

SBA 7(a) Loan
Fund or grow your business
Primary Use Working capital, inventory, equipment, business acquisition
Loan Size Up to $5 million
Down Payment Typically, 0–10%
Structure Single loan; SBA guarantees a portion
Interest Rate Variable or fixed; negotiated with lender
Term Length Up to 10 years (working capital), up to 25 years (real estate)
Collateral Requirement Typically required
Fees SBA guarantee fee (can be financed)
Approval Speed Generally faster and more flexible
Ideal For Working capital, acquisitions, franchise financing

SBA 504 Loan
Finance your growth
Primary Use Fixed assets (e.g., real estate, major equipment)
Loan Size Up to $20 million (CDC - SBA portion up to $5 million)
Down Payment Typically 10% (may be higher for startups or special-use)
Structure 50% lender, 40% CDC (SBA-backed), 10% borrower
Interest Rate Fixed rate on SBA (CDC) portion; market rate on lender portion
Term Length 10, 20, or 25 years on SBA portion
Collateral Requirement Secured by the fixed asset
Fees SBA debenture fee + CDC closing costs
Approval Speed Longer process (multiple parties involved)
Ideal For Owner-occupied real estate, major equipment investment

Your SBA Preferred Lending Partner

Our SBA Preferred Lender Program (PLP) designation reflects the experience and dependability we bring to small business lending. This status allows us to streamline lending decisions by reducing processing time, providing business owners with a more efficient path from application to funding quicker.

Government-Backed Small Business Loans

Whether you’re acquiring a company or expanding your existing business, SBA financing can help make it happen. Backed by the U.S. Small Business Administration, SBA loans provide funding for a wide variety of business purposes:

Working Capital
Acquisition
Equipment
Inventory
Real Estate
And More

7(a) Loans At A Glance

7(a) loans are the SBA’s primary program for providing long-term financing for a variety of purposes. Partially guaranteed by the U.S. Small Business Administration, the 7(a) is the SBA’s most common loan program offering flexible financing for a variety of business needs.

504 Loans At A Glance

SBA 504 loans are long-term, fixed-rate financing solutions available exclusively through SBA Certified Development Companies (CDCs). They are commonly used by small businesses to purchase or improve major fixed assets such as buildings, land or equipment.

Which SBA Loan is Best for Your Business?

Comparing SBA 7(a) vs. SBA 504 Loans

-	SBA 7(a) Loan	SBA 504 Loan
-	Fund or grow your business	Finance your growth
Primary Use	Working capital, inventory, equipment, business acquisition	Fixed assets (e.g., real estate, major equipment)
Loan Size	Up to $5 million	Up to $20 million (CDC - SBA portion up to $5 million)
Down Payment	Typically, 0–10%	Typically 10% (may be higher for startups or special-use)
Structure	Single loan; SBA guarantees a portion	50% lender, 40% CDC (SBA-backed), 10% borrower
Interest Rate	Variable or fixed; negotiated with lender	Fixed rate on SBA (CDC) portion; market rate on lender portion
Term Length	Up to 10 years (working capital), up to 25 years (real estate)	10, 20 or 25 years on SBA portion
Collateral Requirement	Typically required	Secured by the fixed asset
Fees	SBA guarantee fee (can be financed)	SBA debenture fee + CDC closing costs
Approval Speed*	Generally faster and more flexible	Longer process (multiple parties involved)
Ideal For	Working capital, acquisitions, franchise financing	Owner-occupied real estate, major equipment investment

*Processing times vary based on application completeness, underwriting requirements, and SBA review.

Why an SBA Loan from VeraBank?

At VeraBank, we believe in the people of Texas and your entrepreneurial spirit. We recognize that small businesses are the lifeblood of our communities, fueling the local economy – and we genuinely want to see you succeed. With versatile financing solutions and local SBA lenders who’ll be with you at every step, we’re the right partner for your business. “Small businesses are an essential part of the communities we serve, and timely access to financing plays a vital role in their growth and success,” said Brad Tidwell, VeraBank CEO.

SBA questions? Explore our FAQ section below or connect with a VeraBank SBA expert!

CONNECT WITH AN SBA LENDER

VISIT A BRANCH

CALL US AT 877-566-2621

*SBA loans are subject to credit approval and SBA eligibility requirements. Terms, rates, fees, collateral requirements, and down payment requirements vary by loan program and borrower qualifications. SBA guarantees apply only to the guaranteed portion of the loan and do not ensure loan approval.

SBA Lending FAQs

You have honest questions about VeraBank's SBA loan offerings. Here are our genuine answers.

Is an SBA 7(a) loan right for my business?

SBA 7(a) loans are versatile and ideal for general business needs, including acquisition financing. With lower or no equity required, you can take care of all your financing needs in one loan. If you need real estate, equipment, inventory or working capital to start or grow your business, an SBA 7(a) loan could be the ideal solution.

Is an SBA 504 loan right for my business?

SBA 504 loans prioritize long-term, fixed-asset investments, offering lower fixed rates. These loans are more cost-effective for owner-occupied commercial real estate and large equipment purchases. Prepayment penalty applies. If you’re looking to buy or build commercial real estate or purchase major machinery (e.g., commercial vehicles, tractors, etc.), an SBA 504 could be the perfect solution.

Why is an SBA loan the right solution for my business?

SBA loans are guaranteed by the United States Small Business Administration. They are specifically designed for small businesses, to help them secure the funding they need.

Some benefits of SBA-guaranteed loans include:

Competitive terms and benefits: SBA loans generally have rates and fees comparable to non-guaranteed loans. They often offer lower down payments, flexible overhead requirements, with no collateral needed for some loans.
Counseling and education: Some SBA loans come with continued support to help you start and operate your business. At VeraBank, our relationship doesn't stop once the loan is made – We'll continue to be available as your banking partner after closing.

*Requirements vary by loan program, loan amount, borrower qualifications, and SBA guidelines.

Is my business eligible for an SBA loan?

In general your business must:

Be a for-profit business
Do business in the U.S.
Be creditworthy

Our SBA loan specialist will give you a complete list of eligibility requirements for your loan.

What documents do I need to apply for an SBA loan?

To apply for an SBA loan, you’ll need to provide a variety of personal and business financial information, as well as certain legal documents. Specific requirements vary by loan program.

Generally, it’s good practice to have the following documents available when applying for an SBA loan:

Personal and Business Financial Statements
Personal and Business Tax Returns
Personal and Business Credit Report
Resumes (for key management positions)
Statement of Personal History
Business Plan
Business Bank Statements
Business Licenses and Legal Documents
Loan Application History

You may also need:

Details of the Loan Purpose
Collateral Information
Personal Guarantee

What’s the significance of VeraBank’s SBA Preferred Lender Program (PLP) designation?

It means that by authority of the U.S. Small Business Administration (SBA), VeraBank can approve, process and service SBA-guaranteed loans. This designation recognizes a select group of lenders with proven expertise and a strong track record in SBA lending. The PLP recognition reflects the experience and dependability VeraBank brings to small business lending, and it reinforces the bank’s long-standing commitment to supporting the people and businesses that strengthen its local communities. With this status, VeraBank streamlines lending decisions by reducing processing time, providing business owners with a more efficient path from application to funding.

Does being a Preferred SBA Lender impact how VeraBank evaluates loan requests?

While the process is accelerated, VeraBank remains committed to a thorough credit evaluation and sound lending practices. VeraBank continues to evaluate each borrower’s creditworthiness in line with SBA Loan Program Requirements and maintains thorough documentation for every file. The bank’s analysis also remains subject to SBA review. This balance of efficiency and accountability is designed to protect both borrowers and the program.