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SBA Loans To Grow Your Business
As an SBA Preferred Lender, BankUnited can provide flexible financing with lower down payments and an easier path to approval so you can enhance cash flow and focus on growth.
Experienced SBA Guidance
Acquire a Business or Franchise
Finance Equipment, Growth, & More
Refinance an Existing Loan
Flexible Terms Tailored to Your Needs
May Offer More Flexible Qualification Requirements Than Certain Conventional Loan Programs
SBA 7(a) Loan
The SBA 7(a) loan is a versatile small business loan designed to support a wide range of financing needs, from working capital to real estate.
Why an SBA 7(a) loan?
- Long repayment terms – reducing monthly payments
- Down payments as low as 10%
- Frees up cash for expansion
- Financing available for various industries, including manufacturing, hospitality, and more
SBA 504 Loan
A smart option for major fixed assets, SBA 504 loans provide long-term financing for real estate and equipment with less equity required than a conventional loan.
Why an SBA 504 loan?
- Low down payment of only 10%
- Long repayment terms – reducing monthly payments
- Frees up cash flow for growth
- Flexible rate options, including fixed rates
- Fees and soft costs may be financed
Small Business Banking Resources
BankUnited supports entrepreneurs with tailored small business banking solutions designed to help manage cash flow and plan for growth. Our team delivers guidance and tools that align with your long-term goals.
From daily banking needs to strategic financing solutions like SBA loans, we equip your business with the resources to operate efficiently and expand with confidence.
Flexible financing options
Relationship focused support
Scalable banking tools
Additional Small Business Banking Solutions
SBA Loans FAQs
Get answers to common questions about small business administration loans and how BankUnited can help you apply for an SBA loan.
SBA loans are small business loans partially guaranteed by the U.S. Small Business Administration, designed to make financing more accessible with flexible terms.
You can apply for an SBA loan by working with an approved lender like BankUnited, who will guide you through the SBA loan application and documentation process step-by-step.
An SBA 7(a) loan can be used for working capital, business acquisition, equipment purchases, refinancing, and commercial real estate.
SBA lending solutions offer lower down payments, longer repayment terms, and more flexible qualification requirements than many conventional small business loans.
For many businesses, SBA loans are considered among the best small business loans due to their favorable terms and broad range of uses.
Contact Us to Apply for an SBA Loan
Connect with our team to explore the best small business loans for your needs. We are here to guide you through every step of the SBA loan application process.
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SBA Loans: When and How to Use the Funding for Your Small Business
Dec 12, 2023, 12:50 PM
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SBA Loans: When and How to Use the Funding for Your Small Business
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Learn the SBA's eligibility criteria and acceptable uses of an SBA loan.
What do well-known businesses from Shopify and Apple to Chobani and Ben & Jerry’s have in common? These now-billion-dollar companies all took advantage of SBA financing in the early stages of their business journey to fund growth and fuel success.
Launched in 1953, the federal Small Business Administration offers guidance and support, including loans, to small businesses, startups, real estate investors, family-owned businesses, and other types of businesses.1 Last year alone, the SBA delivered a record $44.8 billion in small business loans to 84,400 U.S. entrepreneurs.2
SBA loans are designed to help fledgling businesses grow and expand via flexible terms and conditions. As with any loan product, it’s essential to do your homework before diving in. Read on to learn more about the SBA’s eligibility criteria for financing and how an SBA loan could help your business thrive.
What is an SBA loan?
An SBA loan refers to multiple loan products backed by the SBA and created specifically for small businesses. They offer competitive rates and fees that are often lower than what a new business can access. Depending on the loan type, it may also include continued business support and counseling, as well as favorable terms such as low down payments, flexible overhead, and no collateral required. The three most common types of SBA loans are:
- 7(a) loans: Delivered by SBA lenders, these loans offer long-term financing for a variety of purposes.
- 504 loans: These are long-term, fixed-rate loans available through mission-oriented, community-based SBA Certified Development Companies.
- Microloans: Offered by intermediary lenders, these loans of $50,000 or less are aimed at helping small businesses and nonprofit childcare centers.
Who is eligible for an SBA loan?
While each lender and loan product has specific eligibility requirements, there are broad qualifications for applying for an SBA loan. First, the loans are aimed at small businesses. The SBA uses a combination of factors to determine what that means; you can assess your business to see if it qualifies here. In addition, your company also needs to be:
- A for-profit company
- Located in the United States or its territories
- Have tried to obtain alternate sources of financing, other than an SBA loan
- Creditworthy and demonstrate a reasonable ability to repay the loan
What can you use an SBA loan for?
The SBA offers a variety of loan options to help businesses grow and develop. Qualified loan purposes may include real estate purchases, construction, business acquisitions, partner buyouts, inventory, equipment purchases, and working capital. Here’s a breakdown of SBA loan uses and examples of how businesses have put SBA financing to work:
- Real estate. SBA loans are available to entrepreneurs who are looking to buy, construct, or improve commercial real estate or purchase heavy equipment. For example, Chobani founder, Hamdi Ulukaya, financed his first yogurt-making facility with an SBA 504 Commercial Real Estate loan.3
- Partner buyouts. Buying out a business partner can require a significant cash outlay. Once all partners have agreed on the business’s value, you can utilize an SBA 7(a) loan for a lump-sum buyout. The rules state that the borrower does not need to put down any equity, provided that the business has a debt-to-net-worth ratio of 9:1 or less. If the ratio exceeds this, the borrower will need to put 10% down to qualify for the loan.
- Business acquisitions. Similar to a partner buyout, small business owners can use SBA loans to purchase an existing business, which the SBA refers to as a “change of ownership.” This is permissible when:
- A small business purchases 100% of the ownership interest in another business.
- An individual who isn’t already an owner purchases 100% of the ownership interest in the business.
- A small business acquires another small business through an asset purchase.
- An Employee Stock Ownership Plan (ESOP) or equivalent trust purchases a controlling interest (51% or more) in the small business.
- Equipment purchases. Both 7(a) and 504 loans can be used to purchase or lease business equipment. The types of equipment can include vehicles, machinery, computers, servers, restaurant equipment, and more.
- Working capital. Includes any outlay you make to cover day-to-day expenses, such as salaries and consultancy fees, utilities, training and development, business travel, buying an existing franchise, etc.
- Inventory needs. This refers to raw materials, semi-finished stock, merchandise, supplies, and finished wholesale purchases (for resale).
How do you get an SBA loan?
The SBA sets the guidelines for its loan programs, and qualified lenders then evaluate and disperse the loans to small businesses. As an SBA Preferred Lender, BankUnited can help you determine whether an SBA loan makes sense for your business and which type of loan you should pursue. We offer SBA 504 and SBA Express Line of Credit & Term Loans to help you get your ideas off the ground, with up to 100% financing available.
SBA loans are a powerful tool for business owners to start and grow their companies. You can leverage the loans for a variety of purposes, from buying equipment to expanding working capital to purchasing another business. For a full breakdown of SBA terms, conditions, eligibility, and interest rates, visit the SBA website.
To learn more about how an SBA loan might work with your business, connect with a BankUnited business banker today.
Sources
- https://www.sba.gov/blog/2023/2023-07/celebrating-70-years-empowering-americas-small-businesses
- https://www.sba.gov/article/2025/09/30/trump-sba-delivers-record-capital-small-businesses-fy25
- https://www.chobani.com/about
Not a commitment to lend. SBA loan products are subject to credit approval, eligibility requirements, and applicable SBA program guidelines
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- Small Business
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SBA 7(a) Loan
Use of Proceeds:
- Real estate – purchase, construction, renovation or refinance of commercial real estate – majority of space must be owner-occupied; loans up to $5 million
- Business acquisition – business, franchise or professional practice; loans up to $5 million
- Machinery & equipment – purchase or refinance; loans up to $5 million
- Start-up – franchised businesses; loans up to $5 million
Terms:
- Real estate – up to 90% financing, up to 25 years, prepayment penalty for initial 3 years (none after the end of year 3)
- Business acquisition – up to 80% financing, up to 10 years, no prepayment penalty
- Refinance – up to 25 years, prepayment penalty applicable for initial 3 years on terms greater than 15 years
- Rates are based on a spread over the Prime Lending Rate (rates vary depending on the specific strengths of the transaction)
- SBA Guarantee Fee is paid directly to the U.S. Small Business Administration; amount varies based on loan/guarantee amount; other customary fees also apply
- All SBA 7a loans are fully amortized and are assumable
SBA 504 Loan
Use of Proceeds:
- Purchase, refinance, construction, or renovation of owner-occupied commercial real estate
- Purchase and installation of long-life machinery and equipment
- 50% financing – first mortgage from BankUnited
- 40% financing – SBA 504 second mortgage (provided through a local Certified Development Corporation)
- 10% minimum down payment by the borrower (15% in the case of special use properties)
Terms:
Fixed and variable rates available.
First mortgage:
- Up to 25 years, fully amortized
- Prepayment penalty applies and is set based on various factors
Second mortgage:
- 20 year, fully amortized
- Fixed rate is determined at SBA-guaranteed 504 debenture sale
*Minimum borrower equity contribution varies based on loan structure, collateral, use of proceeds, borrower experience, and SBA program requirements
Interest rates, fees, and program terms vary based on loan structure, borrower qualifications, collateral, and SBA requirements.
All loans are subject to credit and property approval. Program not available in all states. Program terms and conditions are subject to change without notice. Other restrictions, limitations and fees may apply. All loans are offered through BankUnited, N.A. This is not a commitment to lend.