SBA Loan Requirements
Last updated May 27, 2025
SBA loan requirements can be extensive relative to other small business loans SBA loans
Ultimately, SBA loan qualifications range from simple (your business is based in the U.S.) to more complex (your business’s financial and legal documents). Plus, the exact requirements vary based on the lender you work with and the particular SBA loan program you apply for.
To speed up the process and increase your chances of getting an SBA loan, use this guide to understand all of the requirements before you begin your search. And when you’re ready to apply, we can help you find the best SBA lender
How much do you need?
No cost to you
Your credit score won't be impacted
Compare multiple lenders with one application
Be a For-Profit U.S. Business in an Eligible Industry
The most basic SBA loan requirement is that you have a U.S.-based, for-profit business in an eligible industry. Your business needs to be officially registered and operating legally.
Nonprofit businesses aren’t eligible for most SBA loans (certain not-for-profit childcare centers may qualify for SBA microloans
- Gambling
- Lending
- Life insurance companies
- MLMs
- Political or lobbying efforts
- Private clubs
- Speculative businesses (e.g., oil wildcatting)
In addition to the SBA’s requirements, individual lenders may have their own list of ineligible industries, so make sure you check with a lender before applying.
Be Unable to Access Credit Elsewhere
The SBA won’t guarantee your loan if you can find business financing with reasonable terms without their help. This doesn’t necessarily mean you need to prove you’ve been denied a loan.
Instead, it means that a participating lender must be able to document for the SBA that other financing options are not available to you, whether that’s because of your borrowing history, time in business, or another factor.
Additionally, you’ll need to be able to show that you, as the business owner, have already invested your own time or money into your business. You may need to provide details regarding how much money you’ve invested in your business, how much of your business you own, and how much time you spend in any given week working specifically for your business.
Meet SBA Size Standards
The SBA measures business size by industry, based on either the number of employees or average annual receipts. Generally, manufacturing businesses with 500 or fewer employees and non-manufacturing businesses with less than $7.5 million in annual receipts can qualify for an SBA loan.
You can use the SBA’s size standards interactive tool
Meet a Lender’s Underwriting Criteria
SBA loan requirements will vary by lender. However, any lender is likely to look at the following qualifications.
Personal Character and Background
To qualify for an SBA loan, you’ll need to provide information about your personal background, including previous addresses, your citizenship status, and your criminal record.
Having a criminal record doesn’t automatically disqualify you from SBA financing; however, the lender will evaluate your application with more scrutiny.
As of March 7, 2025, only businesses that are 100% owned by U.S. citizens, U.S. nationals, or unconditional lawful permanent residents (LPRs) are eligible for an SBA loan.
Time in Business
The SBA doesn’t have a fixed time in business requirement. Many lenders, however, require a minimum of two years in business to qualify for an SBA loan. The bottom line is, the longer your business has been operating, the more likely you are to get approved for the loan.
Personal Credit Report
Your personal credit score is a window into how you’ve managed your personal finances. Stellar personal credit gives the lender reassurance that you’ll be trustworthy with your business’s finances and will be able to pay back the loan.
If your credit score isn’t above 690, you’ll likely have difficulty qualifying for an SBA loan. If that’s the case, we recommend that you take some time to improve your credit score before applying. (Many of our tips for improving your business credit score
Business Credit Report
The SBA uses the FICO Small Business Scoring Service
If you don't meet this threshold, your application is not automatically rejected. Your lender can continue to process your application, but it must use the stricter underwriting criteria that's required for standard 7(a) loans.
Provide Personal and Business Documentation
In addition to background details about you and your business, an SBA loan application
Resumes of Company Management
This document will give lenders an idea of what your business background is and how experienced you are in your industry.
A resume is particularly important if you need an SBA startup loan
Business Plan
Your business plan is a great chance to prove to the lender that investing in your small business is a smart decision.
An important part of your business plan when applying for an SBA loan is the “use of proceeds” section since you must use the capital for an eligible business purpose as defined by the SBA.
Although SBA 7(a) loans
Personal and Business Income Tax Returns
Personal tax returns are an important part of your application for the same reason your personal credit score is: Lenders want to determine whether you’ll be financially responsible in managing your SBA loan. Lenders also use your personal tax returns to verify your income.
Similarly, lenders use business tax returns to verify your business’s income. Conventionally, lenders ask to see the past two to three years of personal and business income tax returns, so make sure to get these documents in order.
Business Financial Statements
Financial documents are a big part of your SBA loan requirements. When you apply, lenders will likely ask for both your balance sheet and your profit and loss statement to evaluate your business’s financial health.
Business Debt Schedule
A business debt schedule records the details of each of your current debts. If you have existing debt, you and your lender will want to consider your business debt schedule closely to make sure that taking out another loan makes sense for your business.
Bank Statements
Most lenders will ask to see personal and business bank account statements. This SBA requirement shows lenders how much of a cash cushion you can maintain and how you manage your business’s daily finances.
Legal Documents
Like many SBA loan requirements, the legal documents you need to submit will vary by lender, but here are some you may be asked to provide:
- Business licenses and registrations allowing you to conduct business
- Articles of incorporation (for corporations) or articles of organization (for LLCs)
- Contracts with third parties (like clients or suppliers)
- Franchise agreements
- Leases for commercial real estate or business equipment
Offer Collateral and Sign a Personal Guarantee
Although this requirement can vary based on the program, generally, the SBA requires lenders to obtain collateral, when available, to secure an SBA loan.
Collateral can be anything that you’re willing to pledge if you can’t repay your SBA loan, such as real estate, equipment, or inventory. Lenders evaluate collateral on a case-by-case basis, but a personal guarantee
SBA CDC/504 Loan Requirements
Generally, SBA 7(a) loan and microloan requirements end here. With SBA CDC/504 loans
- Environment impact statement, if applicable
- Evidence of meeting public policy or job creation goals
- Proof that any real estate you’ll buy with the loan proceeds is at least 51% owner-occupied
SBA CAPLines Program Requirements
If you apply for a CAPLines SBA line of credit
- At least one year in business for a working capital line of credit
- Must be a builder to qualify for a builder’s line of credit
- Must have a history of successfully bidding on and completing contracts to qualify for contracts line of credit
- Must be able to demonstrate a seasonal pattern of business for a seasonal line of credit
Next Steps
If you’re looking for more advice , follow our step-by-step guide on how to get an SBA loan
If you’re ready to find an SBA lender and apply for a loan , let us help you find the best fit for your business. Click the button below to answer a few simple questions—no impact to your credit report—and we’ll show you the loans you qualify for, free of obligation.
How much do you need?
No cost to you
Your credit score won't be impacted
Compare multiple lenders with one application