How much do you need?
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
Here are 4 government small business loans
Lender | NerdWallet Rating | Max loan amount | Min. credit score | Next steps |
---|---|---|---|---|
SBA 7(a) loan with Fundera by NerdWallet | Best for Government small-business loans | $5,000,000 | 650 | with Fundera by NerdWallet |
SBA Express loan with Fundera by NerdWallet | Best for Fast government small-business loans | $500,000 | 650 | with Fundera by NerdWallet |
SBA Microloan with Fundera by NerdWallet | Best for Government small-business loans for bad credit + Government loans to start a business | $50,000 | 620 | with Fundera by NerdWallet |
SBA CDC/504 loans with Fundera by NerdWallet | Best for Government small-business loans for real estate financing | $5,000,000 | 680 | with Fundera by NerdWallet |
Here are 4 government small business loans
Best for Government small-business loans
Best for Fast government small-business loans
Best for Government small-business loans for bad credit + Government loans to start a business
Best for Government small-business loans for real estate financing
Our pick for
Government small-business loans
SBA 7(a) loans are the most common government small-business loan, offering financing for equipment, working capital, refinancing debt or other business purposes.
SBA 7(a) loan
Max loan
$5,000,000
Min. Credit score
650
Apr range
9.75-12.25%
Our pick for
Fast government small-business loans
Applying for most government business loans is a lengthy process. But if you need fast funding, SBA Express loans provide up to $500,000, and the SBA responds to your application within 36 hours.
SBA Express loan
Max loan
$500,000
Min. Credit score
650
Apr range
12.00-14.00%
Our pick for
Government small-business loans for bad credit
Microloans are offered through nonprofit, community-based organizations, which may be more willing to work with you if you have low or poor credit.
SBA Microloan
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Our pick for
Government loans to start a business
Most lenders will require at least two years in business to get a government-backed loan. However, microloans of up to $50,000 may be available to newer businesses.
SBA Microloan
Max loan
$50,000
Min. Credit score
620
Apr range
8.00-13.00%
Our pick for
Government small-business loans for real estate financing
SBA CDC/504 loans offer low-cost, long-term financing that you can use to purchase, renovate or construct buildings and facilities.
SBA CDC/504 loans
Max loan
$5,000,000
Min. Credit score
680
Apr range
2.60-3.20%
How Much Do You Need?
Federal government small-business loans
- SBA 7(a) loans. The 7(a) program is the primary type of SBA loan, with $36.5 billion in loans issued in fiscal year 2021, according to the Congressional Research Service. You can receive up to $5 million in funding for day-to-day expenses like payroll, as well as longer-term business costs like equipment financing. Funds are available as term loans or an SBA line of credit.
- SBA Express loans. A variation of the 7(a) program, Express loans come with a smaller funding maximum, $500,000, but offer quicker processing. If you need a fast business loan, you may be able to get approved for an SBA Express loan within a few days, whereas a 7(a) loan application may take weeks or months to process.
- SBA CDC/504 loans. These SBA loans also offer funding of up to $5 million; however, CDC/504 loans have strict usage rules compared with other government small-business loans. Their primary use is financing construction or real estate projects. Unlike 7(a) loans, you can’t use an SBA CDC/504 loan for working capital or refinancing debt.
- SBA Microloans. The SBA offers microloans of up to $50,000 through nonprofit community organizations. Microlenders often focus on assisting traditionally underserved populations, including minority business owners and women business owners, and may have looser eligibility requirements than other government-backed business loans. SBA Microloans can be good options for newer businesses or those with bad credit.
State and local government small-business loans
- Economic Injury Disaster Loans. EIDL loans provide flexible working capital to help keep your business afloat until you can operate normally again. The COVID-19 EIDL program is no longer accepting applications or appeals for reconsideration, but there is a list of current declared disasters on the SBA’s website.
- Business physical damage loans. This financing can help you repair or replace damaged real estate, equipment, machinery or other physical assets.
- Mitigation assistance. In addition to loan funds, the SBA offers mitigation assistance, which can increase your financing by up to 20% to help you make upgrades so your property is more resilient in the future.
- Small-business grants. Federal, state and local governments offer a range of grant programs that provide free financing to small businesses. Grants.gov is a good resource for researching small-business grants administered by federal government agencies.
- Small Business Investment Companies. The SBA funds and licenses SBICs, which offer small businesses debt and equity. You can find an investor in your area on the SBA’s website.
- SBA contracting assistance programs. These programs, like the SBA 8(a) program, help small businesses win federal contracts.
- If you’re a highly qualified borrower. If you have excellent credit, many years in business and strong revenue, you may want to look at bank small-business loans before government options. Banks typically offer the lowest rates on business loans, whereas SBA loan rates have set ranges based on rules established by the federal government.
- If you’re in a rush. Getting a government small-business loan requires approvals from a lender and the agency providing the guarantee, which can be time-consuming. Consider an online lender if you can’t afford to wait. Some offer funding as quickly as the same or next day. However, that convenience will likely mean a higher interest rate.
- If you’re just getting started. Businesses that haven’t been around for at least two years and lack strong financials won’t be able to get most government loans, though lenders set their own qualifications. Until your company is more mature, you’ll need to turn to startup business loan options such as credit cards or personal loans.