SBA stands for “Small Business Administration,” which is a branch of the federal government. The SBA offers several different loan programs for businesses; however, SBA loan programs vary by institution.


Financial Plus currently offers SBA 7(a) and 504 loan programs. These are two of the most popular programs. These programs are typically used for the purchase of real estate or equipment or for working capital.

An SBA loan is funded by the financial institution, and a portion of the loan is guaranteed by the federal government. In order to obtain an SBA loan, businesses must meet certain qualifying criteria.

To qualify, you need to be able to prove:

  • Cash Flow
  • Good character (no criminal record)
  • 660 minimum credit score (some exceptions made on case-by-case basis)
  • Management capability
  • Collateral
Also, individuals who own 20% or more of the business are required to personally guarantee the loan.