Business Term Loans

Secure affordable funding with low rates, flexible terms, and government-backed support to fuel growth and success.

SBA Loans at A Glance

What to Expect

Lines of Credit

From $5,000,000+

Repayment terms

7 to 25 Years

Payment Options

Monthly

Available through

PCG & Our Finanacing Network

What is a SBA Loans

What is a SBA Loans

SBA Loans are financing options partially guaranteed by the U.S. Small Business Administration, allowing small businesses to secure funding with favorable terms, including lower interest rates, longer repayment periods, and lower down payments. These loans reduce risk for lenders, making it easier for businesses to access capital for growth, working capital, or expansion.

How to Apply for SBA Loans

Start by reviewing your credit score and selecting the appropriate loan type, like a 7(a) or 504. Gather key financial documents, connect with an SBA-approved lender, and submit a pre-qualification. If approved, finalize the process with a full application and required documentation for lender approval.

Why Choose a Business Term Loan?

SBA 7 (a) loan program

The SBA 7(a) loan is the main SBA loan program, often synonymous with “SBA loans.” It supports nearly any business need, from expansion and working capital to equipment, debt refinancing, inventory, or starting a business.

Key 7(a) loan types:

  • Standard 7(a): Up to $5 million, terms of up to 25 years for real estate, 10 years for equipment.

  • 7(a) Small Loan: Up to $350,000; collateral required for loans over $25,000.

  • SBA Express: Up to $500,000 with 36-hour approval.

CAPLines support seasonal or contract-based needs, with options for seasonal expenses, construction projects, and short-term working capital.

Community Advantage loans are issued by nonprofits for underserved businesses, offering up to $250,000 with terms up to 25 years.

SBA 504/CDC loans

The SBA 504 loan program partners the SBA with private lenders and Certified Development Companies (CDCs) to offer long-term loans of up to $5.5 million. These loans are specifically for major investments, like real estate or large equipment purchases.

504 loans have fixed interest rates, which fluctuate based on the current market rate of five- and 10-year U.S. Treasury bonds.

Microloans

SBA microloans, provided through nonprofit lenders, offer up to $50,000 with a maximum term of six years. These loans cannot be used for real estate purchases.

Qualifying for a Pennington SBA Loana

Ready to fuel your business growth? Apply today, and let us show you how easy it can be to secure the funding you need. We’re here to support your success every step of the way!

Time in Business

Not Applicable

Annual Revenue

Not Applicable

Credit Score

0+

A Guide to SBA Loan Requirements

If you meet the SBA’s general requirements, you’ll likely need to provide some basic documentation for yourself and your business. Not all documents or forms will be necessary for every applicant or program, but commonly required items for your loan application may include:

  • Personal financial statement

  • Current business income statement and balance sheet

  • Federal income tax returns for the previous three years

  • Cash flow projections (month-by-month, for one year)

  • Real estate purchase agreements (when buying real estate with SBA loan proceeds)

  • Articles of organization

  • Business licenses

  • Documentation of any lawsuits, judgments, or bankruptcies

SBA loan rates and requirements

The interest rate for an SBA loan is negotiated but cannot exceed the SBA’s maximum rate, which is influenced by factors like the loan term, loan amount, and the prime rate (currently 7.50% as of Dec. 15, 2022). The prime rate can fluctuate based on federal interest rates and market trends. Some SBA loans also require a down payment. Here’s an overview of rates and requirements by loan type.

7(a) Loan Program

- Fixed Rates: Vary based on loan amount, starting at Prime + 5% for loans over $250,000.

- Variable Rates: Vary by loan term (over or under seven years) and loan amount, starting at Prime + 2.25% for larger loans.

- Requirements: Collateral required for loans over $350,000, with specific SBA forms needed.

Fees: One-time guaranty fee and an annual service fee.

Community Advantage:

- Rates: Prime + 6% (total 10.50%) for amounts up to $250,000.

- Requirements & Fees: Same as the 7(a) program.

SBA Express:

- Rates: 11.25% for loans up to $50,000, and 9.25% for loans from $50,000 to $350,000.

- Requirements & Fees: Same as the 7(a) program.

SBA 504 Loan Program

- Effective Interest Rates: Around 3% of the total debt.

- Requirements: Personal guaranty and a down payment of 10-20%.

- Fees: Includes processing, closing, servicing, assumption, and underwriting fees, totaling approximately 3.5% of proceeds plus 1% of unpaid balances.

SBA Microloan Program

- Effective Interest Rates: Between 8% to 13%

- Requirements: Collateral and personal guarantee generally required

- Fees:

- Packaging fee up to 2% or 3%

- Closing fees

These criteria are just a starting point when evaluating loans for small businesses. A more in-depth analysis, which looks beyond the numbers to understand the full scope of your business, is often used to make final financing decisions.

Ready to Get Started?

Connect with a Pennington Business Financing Specialist to find out more

Discover Additional Financing Opportunities

Real Estate Loans

Real Estate Investment loans don’t have to be a headache. Whether it’s commercial, residential, or mixed-use, we’ve got the funding to fit your needs. Choose from variable or fixed rates, with terms from 5 to 25 years, and up to 30-year amortization. We also offer Real Estate secured lines of credit and Construction loans. Need the best rate? Go full doc. Need to close fast? We’ve got stated income products. Whatever your deal, we’ll make it happen—hassle-free!

Business Loans

It’s the jet fuel that propels your business dreams from concept to reality. It’s when a lender fronts you the cash to grow, expand, or kick off your big idea—while you get to steer the ship. Think of it as the capital boost that says, “Let’s make this happen!”

Lines of Credit

These are like having a financial safety net you can dip into whenever your business needs a boost. It’s flexible, revolving cash at your fingertips—only pay interest on what you use. Think of it as a rainy-day fund with a side of business opportunity!

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