SBA Commercial Vehicle Loans: What They Are and How to Get One
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
How much do you need?
How do SBA commercial vehicle loans work?
Which SBA loans can be used for business vehicles?
Loan type | Maximum loan amount | Best used for |
---|---|---|
$5 million. | Most commercial vehicles. | |
$500,000. | Making unexpected repairs, as Express loans fund faster than other types of SBA loans. | |
$50,000. | Light-duty vehicles, such as cars and SUVs, as well as borrowers who have bad credit. | |
$5 million. | Heavy equipment vehicles that can't travel freely on roadways without a special permit, such as backhoe loaders and cranes. |
Which vehicles can an SBA loan be used for?
- Cars.
- SUVs.
- Vans.
- Light trucks.
- Buses.
- Box trucks.
- Heavy equipment vehicles, such as bulldozers and cement mixers.
- Other specialty vehicles.
Pros and cons of SBA commercial vehicle loans
Pros
Competitive interest rates.
Long repayment terms.
Large loan amounts.
Can be used to fund multiple vehicles at once.
Cons
Can be hard to qualify for.
Can take months to receive funding.
Lots of paperwork required.
Down payment and collateral may be required.
Who should get an SBA commercial vehicle loan?
- You can’t qualify for a traditional bank loan. Traditional bank loans tend to have the most stringent qualification criteria, but usually come with best interest rates and terms. If you can’t quite meet bank standards, you may find SBA loans are a solid next-best option.
- You’re financing a fleet of vehicles. SBA loans have higher maximum loan amounts than many other types of loans. This makes it easier to finance an entire fleet of vehicles or several large construction vehicles at once.
- You need financing for multiple projects. With SBA loans, borrowers can bundle other purchases, such as real estate, other equipment or working capital within a single loan. This makes it easier for business owners to pay for multiple projects at once.
How to get an SBA commercial vehicle loan
Make sure you meet the basic requirements
- Having a for-profit U.S. business that fits within the SBA’s size standards
. - Demonstrating your need for financing by having exhausted non-SBA loan options first.
- A personal credit score of approximately 650 or higher.
- At least two years of being in business.
Find a lender
Gather paperwork and apply
- A business plan.
- Personal and business income tax returns.
- Business financial statements, such as a balance sheet and cash flow projections.
- Business license or certificate.
- Professional resume.
- Loan application history.
Alternatives to SBA commercial vehicle loans
- Conventional bank or credit union loans. Like SBA loans, these tend to have competitive interest rates and favorable repayment terms. Just keep in mind: they can be even harder to qualify for than SBA loans, though they tend to have slightly faster approval times.
- Online lenders. Loans from online lenders tend to fund faster than SBA and conventional bank loans and have looser eligibility requirements, but you’ll likely have to pay more in interest and have a shorter repayment window.
- Direct lenders. Depending on the type of vehicle you’re trying to buy, you may find options directly from the manufacturer. For example, John Deere has special financing options for vehicles and other equipment used in agriculture, construction and forestry
. Direct lenders may offer more flexible terms and industry expertise not found in other lenders. - Leasing. If you can’t qualify for any of the above alternatives, leasing your commercial vehicle may be an option. Leasing tends to come with lower monthly payments than loans, but may be less cost effective in the long run. Some lease agreements even let you purchase the vehicle.
Article sources
- 1. Small Business Administration. Table of size standards. Accessed Feb 4, 2025.
- 2. John Deere. Why Finance Through John Deere Financial?. Accessed Feb 4, 2025.