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Let Our Experience Be Your Guide

SBA loans are available and Banks want to lend! You just need to work with the right bank.

SBA 7(a) Loans
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SBA 7(a) Loans

Loan Amounts: Up To $5,000,000.00

Use of Funds: Business acquisitions, franchising, debt restructure, working capital, equipment, startup, payroll, marketing, expansion, lease hold improvements, owner occupied commercial real estate, inventory and the list goes on...

Interest Rate: Prime + 2.75% - 3%  (Depending on the loan size banks can charge up to 6.5%)

Terms: Up to 10 Years (25 years on OOCRE)

SBA 504 Lons

SBA 504 Loans

Loan Amounts: Up To $5,000,000.00

Use of Funds: Owner occupied commercial real estate. Must be 51% owner occupied. Not for real estate investing. Can include land, construction, furniture, fixtures, lease hold improvements. The 504 is not secured by any collateral. It is a funding option for companies with solid finances that want to avoid issuing shares and diluting their equity.

Interest Rate: Fixed rate typically below market.

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Terms: Up to 10-25 Years

SBA Express Loans
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SBA Express Loans

Loan Amounts: Up To $500,000.00

Use of Funds: Mostly the same use as the SBA 7(a) loan. It is an SBA 7(a) loan but only up to $500,000 and fast tracked. Very few banks participate and they create unique programs around it. Minimum 1 to 2 years in business.

Interest Rate: Prime + 2.75% - 3% (Depending on the loan size banks can charge up to 6.5%)

Terms: Up to 10 Years



What You Need To Get Approved

7 Requirements

1. Credit Requirements

SBA loans are all personally guaranteed and anyone that is 20% or more owner of the business must be a guarantor. This means your personal credit must be clean without any bankruptcy, collections, or late payments in the past 7 years. Some lenders look more closely at the most resent 3 to 4 years and may require a detailed explanation in writing. Some lenders are more lenient.


If your business is at least 2 years old and the loan amount is $350,000 or less, the SBA will also be looking at your business credit score on any SBA loan, called the FICO Small Business Scoring Service (SBSS). If your personal credit is not strong enough you will need to either have business credit or build business credit to be able to qualify.

2. Debt Service Coverage Ratio

DSCR or Debt Service Coverage Ratio tells the bank if you can afford to pay the minimum monthly payments on the loan amount you are applying for.


DSCR is calculated by dividing a business’s net operating income by their total debt service. This is done using the data from the last 3 years of your personal financial records for startups plus up to 3 years of your business financial records for established businesses. For business acquisition; 3 years of business financials will be required from the seller.


Based on these variables banks and lenders calculate a debt service coverage ratio. This ratio determines your ability to repay the debt. The SBA requires a minimum DSCR of 1.15x, but most banks want to see between 1.25x. Without the required DSCR, banks will look to your projections to see if you can qualify.

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3. Business Plan

One of the first things that banks and lenders will look at is your business plan. Your business plan is essentially your pitch deck and the banks and lenders are investors in your business. The more detailed your business plan and the clearer your request, the more likely you will be approved. Your Business Plan should also demonstrate 2 to 3 years real projections.

4. Projections

It's important to provide realistic and well-supported projections to the lender to demonstrate that your business has a viable plan for growth and repayment of the loan. Your projections must demonstrate that the business will be able to DSCR the loan.

Equally important to your projections are your assumptions. Assumptions explain how you arrived at the numbers in your projections. They should be matched to your tax returns.

When applying for an SBA 7(a) loan, you'll typically be required to provide several types of projections to help the lender assess the financial viability of your business.


These projections may include: Profit and Loss, Cash Flow, Balance Sheet, and Sales Projections.

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5. Collateral

Most SBA Banks want the loan to be fully collateralized with real estate equity. This is not the case every time and in every situation.

On loans above $350,000 the SBA requires the bank to collateralize real estate equity, even if the bank doesn't require it. The SBA requires that collateral is discounted. The discount varies based on the type of collateral for example real estate is 85% while inventory is only 10%.

6. Cash On Hand

The amount of money you need for a down payment on an SBA 7(a) loan can vary depending on several factors, including the size of the loan and the purpose of the loan.

Typically, SBA lenders require a down payment of at least 10% of the total project cost for most 7(a) loans. For example, if you're applying for a $100,000 SBA 7(a) loan, you'll need to provide a down payment of at least $11,000. However, some lenders may require a higher down payment, depending on their individual lending criteria.

The SBA also requires post closing liquidity to be able to cover at least 6 months of payments and business expenses. Lenders may choose to require more than 6 months. Also, some lenders look only at the business, while others will look at both personal expenses as well, especially for startups.

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7. Insurance Requirements

When applying for an SBA 7(a) loan, you will be required to meet certain insurance requirements to protect the lender's investment and minimize risk. The specific insurance requirements will depend on the lender's policy and the nature of your business, but some common types of insurance include: Property Insurance, Liability Insurance, Workers' Compensation Insurance, and Business Interruption Insurance. 

Life Insurance is required by the SBA to bridge the gap on loans over $350,000 that the borrower is unable to fully secure. Banks may require it on any size loan as well.

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FormsFAQ, and Resources



Can I use an SBA 7 (a) Loan to refinance credit cards?

Can I use an SBA 7(a) Loan to startup a new business?

Can I use an SBA 504 loan to buy more investment properties?



Hear From Our Clients And Their Results

$1,400,000.00 SBA 7(a) Debt Restructure & LOC

I was in need for funding for my fast growing business. After trying several agents, I had no results just empty promises. Someone recommended OrangeFi, I decided to try.

After first conversation with Mr. Sebastien, I knew that this will be professional and I will get the funding that I was looking for. Very responsive, helpful and of course always there if you need his assistance. I highly recommend OrangeFi !!!

Elaine Horne

Expert Home Care

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$600,000 SBA 7(a)

Sebastien and his crew have been a huge help. I was struggling to find the right lender to fund my new restaurant, OrangeFi came to the rescue. Very quickly they got me in touch with the right bank that suits my needs, and got me approved for an SBA loan with an excellent rate. They were very responsive and helped guide me through the entire process. I highly recommend them.

Ali Sheikh
BBQ Chicken Franchise

$332,000 SBA 7(a)
Bubble Tea Franchise

I discovered Sebastien from OrangeFi though his YouTube channel while I was searching for the processes on how to apply for SBA loan. He was very helpful in guiding me step by step on how to apply for SBA loan. I would recommend anyone that is looking for SBA loan to reach out to him. Thank you!

Tuan Le

Sharetea Franchise

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Need more details? 

We are here to assist. Contact us by phone, email or via our social media channels.

SBA EXPERIENCE is partnered with preferred SBA banks and lenders to provide American entrepreneurs access to SBA loans.

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