Do The ‘Unconventional’ - How to Choose the Right SBA Loan for Your (Big) Small Business Needs
Texas is known for doing things big.
It’s also a perfect place to start small – particularly in Austin, where a culture of championing local and prioritizing community over competition has cultivated a vibrant and thriving small business ecosystem.
From flame-seared sushi and fried chicken donuts to humanoid robots, Austin’s small businesses are at the forefront of innovation, pushing boundaries with out-of-the-box products, services, and ideas. But turning bold visions into reality takes more than imagination – it requires the proper support and resources.
For many ventures, accessing the capital to launch, expand, or manage daily cash flow can be a Texas-sized challenge. With a lack of collateral, limited credit history, and a high perception of risk, small businesses can often struggle to secure conventional financing.
That’s where U.S. Small Business Administration (SBA) financing comes in, empowering small businesses to do the unconventional.
“What SBA does is it allows us to say ‘yes’ more often, because there are situations where it just doesn’t work conventionally,” said Glenn Lauter, SBA Department Manager/EVP at VeraBank. “Because of the government guarantee, SBA loans allow bank lenders to get small businesses the funds they need when they wouldn’t normally have been able to – whether it’s for growth, expansion or working capital.”
How can your small business get an SBA loan?
Start by working with an experienced SBA lender. With more than 60 years of combined SBA lending experience, the VeraBank team can guide your business to the right solution.
“VeraBank is here to help your business succeed,” Lauter said. “Through our SBA products and experienced lenders, we’re here to make it work for your business, even if it’s the unconventional way.”
Which SBA loan best fits your needs?
Here’s a breakdown of three common SBA loan types:
SBA 7(a)
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.
Commonly used for:
- Working Capital
- Inventory
- Equipment
- Expansion
- Business Acquisition
- Franchise Financing
Loan Size:
Down Payment:
SBA 504
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.
Commonly used for:
- Real Estate
- Major Equipment
Loan Size:
Down Payment:
- Typically 10% (may be higher for startups or special use)
SBA MARC (NEW)
Meet MARC – the 7(a) Manufacturer’s Access to Revolving Credit (MARC) Loan Program. Effective Oct. 1, 2025, MARC is a new lending product offering working capital – up to $5 million – for small businesses in the manufacturing industry. Funds can be used in tandem with other SBA and commercial loans to support operational needs, such as inventory purchases or new projects.
Commonly used for:
- Working Capital
- Inventory
- New Projects
Loan Size:
Down Payment:
- No down payment requirement though (though, this can vary by lender)
SBA questions?
Explore SBA Lending and FAQs or connect with a VeraBank SBA expert!
Loans subject to credit approval and SBA eligibility.