Español
close icon

Login to Your Account

Download Our App

iOS

  • iOS

Android

  • iOS
 

SBA Lending

Providing the financial power to fuel your business dreams.

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

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

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.


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 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 working together to ensure your business has the resources it needs for success.

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)
  • State 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
scrolltop