SBA Loans

These loans are guaranteed by the Small Business Administration, and because of this, they offer some of the lowest rates on the market, as well as long repayment terms and the ability to borrow up to $5 million. Repayment ranges from 7 to 25 years, depending on how you plan to use the money. SBA loans are best for strong-credit borrowers who have been operating for 2 years and are willing to work through the long application process to expand their business or refinance debt.

Pros:

• Lowest rates on the market 
• Borrow as much as $5 million
• Longer repayment terms (7–25 years)

Cons:

• Long application process 
• More qualifications required

Best for:

• Expanding businesses or refinancing debt 
• Business with good credit willing to wait for funding