SBA Wins on Price.
SBA 7(a) loans carry a federal guarantee — the government backstops a portion of the bank’s exposure if the loan ever goes bad. That makes the bank’s risk lower, which is why SBA rates beat the open market on almost every comparable file.
Four programs, different jobs.
Most files fit one program well. Your specialist runs the SBA audit first — if it fits, that’s where you go. If it doesn’t, we route to IDRAW or Conventional from the same direct-bank network.
Credit-Based SBA 7(a) | Traditional SBA 7(a) | IDRAW Working capital | Conventional Non-SBA | |
|---|---|---|---|---|
| Amount range | $50K – $150K | $150K – $350K | $25K – $500K | $100K – $3M |
| Term | 10 years, fixed | 10 years, fixed | 3–18 months | Up to 10 years |
| Rate / structure | Up to 11.25% APR | Up to 9.75% APR | Pro-rated, flexible | Bank rate + credit spread |
| Decision time | 48 hours | 72 hours | 4 hours | 1–2 days |
| Qualifies on | 1+ yr profit or DSCR | Positive cash flow, 1.10× DSCR | Bank statements + revenue | Strong cash flow OR strong credit |
| Collateral | None | None (over $350K needs collateral) | None | None |
| Best for | Speed + smaller unsecured | Debt refi, WC, growth capital | Standby capital, bridges, emergencies | Strong businesses SBA can't price |
SBA 7(a) Credit-Based.
Fast, unsecured, qualified on personal credit + business revenue.
The fastest path to SBA capital for established businesses with one year of profit or a clean DSCR — no requirement to show three stacked years of returns. We package your file directly to the bank whose credit committee funds Credit-Based deals exactly like yours, most clear in 48 hours. No collateral required.
- 1+ year of profit or clean DSCR
- Owner credit 680+
- Need capital fast — < 2 weeks to funded
- Working capital, refinance, expansion, marketing
- You don't want to pledge personal real estate
- Pre-revenue or fresh startups (under 1 year)
- Loans above $150K (use Traditional)
- Real estate purchase (use SBA 504, a separate program)
SBA 7(a) Traditional.
Positive cash flow on the most recent return, up to $350K, decided in 72 hours.
For businesses that can show positive cash flow on their most recent tax return. Debt refinancing, working capital, growth capital, business expansion. Qualifies on a 1.10 DSCR minimum on the most recent year, not credit score alone. Lower APR cap than Credit-Based for the larger dollar amounts. Loans above $350K need collateral or step into Conventional.
- Positive cash flow on the most recent return
- Debt refinancing between $150K and $350K
- Working capital or growth capital
- 1.10 DSCR or better on the most recent year
- Files needing money in < 48 hours (use Credit-Based)
- Pre-revenue or fresh startups
- Loans above $350K without collateral (use Conventional)
IDRAW.
Capital on standby. Free unless you draw. Peace of mind.
Once you add SBA fees, an SBA loan stops making sense for a six-month need. That’s where IDRAW comes in — opportunity, emergency, or short-term bridge. The approval costs nothing to hold; you only pay pro-rated interest on what you actually draw. Decisions in 4 hours, no collateral required.
- Capital on standby for opportunity or emergency
- Short-term bridge — six months or less
- Need capital in < 5 days, can't wait on SBA
- Seasonal businesses with cyclical cash needs
- Long-term financing (over 18 months)
- Real estate purchases
- Borrowers who qualify cleanly for SBA on timeline
Conventional financing.
For strong businesses whose credit or debt structure doesn’t fit SBA cleanly. Up to $3M.
Conventional is for businesses with solid fundamentals but a profile that SBA can’t price well. Usually that’s one of two patterns: bad credit with good cash flow, or good credit with a challenged existing debt structure that SBA can’t refi the way the borrower needs. Conventional lenders look at the business first — these deals get done at competitive bank rates when the cash-flow story is real. Decisions in 1–2 days.
- Bad credit, good cash flow
- Good credit, challenged existing debt structure
- Loans above $350K (over the SBA cap)
- Use of funds that doesn't fit SBA program rules
- You qualify for SBA cleanly — almost always cheaper net of fees
- The deal hasn't been audited against SBA yet
- Working-capital need under 6 months (use IDRAW)
See your monthly payment.
Drag the slider. We'll show your estimated payment using the SBA maximum spread off WSJ Prime (6.75%). Real rates often run lower.
Prime (6.75%) + 4.50% = 11.25% APR maximum. Many lenders price under the cap based on your file.
Not sure which one is right?
Pre-qualify in 60 seconds. A senior specialist reads your file in the next business hour and recommends the program that actually fits — Credit-Based, Traditional, IDRAW, or Conventional. No credit-score impact when you apply.