At JZ Mortgage, we understand that securing financing is one of the biggest challenges small businesses face. That’s why we offer SBA (Small Business Administration) loans, designed to provide affordable funding solutions with competitive terms, lower down payments, and flexible qualification requirements. Whether you're launching a startup, expanding operations, purchasing equipment, or refinancing debt, an SBA loan can be a powerful tool to help your business thrive.

What Are SBA Loans?

SBA loans are government-backed business loans issued by private lenders, such as banks and credit unions, but guaranteed by the U.S. Small Business Administration (SBA). This guarantee reduces the risk for lenders, allowing them to offer lower interest rates and more favorable terms than conventional business loans.

These loans can be used for various purposes, including:

  • Purchasing real estate (office buildings, retail spaces, warehouses, etc.)
  • Buying equipment and machinery
  • Funding working capital needs
  • Refinancing existing business debt
  • Acquiring a business or franchise

SBA loans are a great option for small business owners who may not qualify for traditional financing due to lower credit scores, limited collateral, or shorter time in business.

Types of SBA Loans

The SBA offers multiple loan programs, each designed for different business needs. Below are the most common types of SBA loans available through JZ Mortgage:

1. SBA 7(a) Loan Program – The Most Popular SBA Loan

The SBA 7(a) loan is the most commonly used SBA loan and is ideal for a variety of business expenses, such as purchasing property, refinancing debt, or funding day-to-day operations.

Key Features:

  • Loan amounts up to $5 million
  • Flexible use of funds (real estate, working capital, equipment, etc.)
  • Repayment terms: up to 25 years for real estate, up to 10 years for equipment and working capital
  • Down payment as low as 10%
  • Interest rates: Fixed or variable, typically ranging from Prime + 2.25% to 4.75%

Best For:

  • Expanding or acquiring a business
  • Buying real estate or equipment
  • Refinancing high-interest business debt

2. SBA 504 Loan Program – Best for Real Estate & Equipment

If you're looking to purchase commercial real estate or high-cost equipment, the SBA 504 loan offers long-term, fixed-rate financing with low down payments.

Key Features:

  • Loan amounts up to $5.5 million or more
  • Low down payment (typically 0%-10%)
  • Long repayment terms (up to 25 years for real estate, up to 10 years for equipment)
  • Fixed interest rates

Best For:

  • Purchasing office space, warehouses, or manufacturing facilities
  • Buying large equipment, such as medical machines or construction vehicles

Note: SBA 504 loans require participation from a Certified Development Company (CDC) and a private lender.

3. SBA Microloan Program – Small Loans for Startups & Microbusinesses

For small startups or businesses needing a smaller amount of capital, the SBA Microloan program offers loans of up to $50,000. These loans are ideal for purchasing inventory, working capital, or smaller equipment needs.

Key Features:

  • Loan amounts up to $50,000
  • Repayment terms up to 6 years
  • Interest rates typically between 8% and 13%

Best For:

  • New businesses and startups
  • Small inventory purchases or operational expenses

SBA Loan Eligibility Requirements

While SBA loans have more flexible qualification standards than conventional business loans, businesses must still meet certain criteria, including:

  • Qualify as a "small business" under SBA guidelines (based on industry, revenue, and number of employees)
  • Operate as a for-profit business in the U.S.
  • Have reasonable owner equity investment (typically at least 10% down for larger loans)
  • Demonstrate the ability to repay the loan through business revenue
  • Meet minimum credit score requirements (usually 650+, but varies by lender)
  • Show a solid business plan and financial projections

Additionally, some businesses are not eligible for SBA loans, including those engaged in speculative industries, gambling, or illegal activities.

Benefits of SBA Loans

SBA loans offer several advantages over traditional business loans, making them a great financing option for many small businesses.

  • Lower Down Payments - Many SBA loans require between 0%-10% down, compared to the 20-30% typically required for conventional business loans.
  • Longer Repayment Terms - With terms of up to 25 years for real estate and 10 years for equipment and working capital, SBA loans provide lower monthly payments, improving cash flow.
  • Competitive Interest Rates - Since the SBA partially guarantees the loan, lenders can offer higher loan to value & lower interest rates than traditional business financing options.
  • Easier Qualification - SBA loans are designed for small businesses that may not qualify for conventional loans, making them more accessible for startups and businesses with limited credit history.
  • No Prepayment Penalties (on Certain Loans) - For loans with terms under 15 years, there are no prepayment penalties, allowing businesses to pay off debt early without additional costs.

SBA Loan Application Process

Applying for an SBA loan involves several steps, and working with an experienced lender like JZ Mortgage can make the process smoother.

Step 1: Determine Your Loan Type & Eligibility

We’ll help you assess your financing needs and choose the right SBA loan for your business.

Step 2: Gather Required Documentation

You’ll need to provide:

  • Business financial statements (profit & loss, balance sheet, tax returns)
  • Personal financial documents (tax returns, personal financial statement, credit report)
  • Business plan & projections
  • Loan purpose details (how the funds will be used)

Step 3: Submit Your Application

Our team will guide you through the SBA loan application and ensure all required documents are included for a smooth approval process.

Step 4: SBA Review & Approval

The SBA and lender will review your application, assess creditworthiness, and issue a loan decision.

Step 5: Receive Funding & Grow Your Business!

Once fully pre-approved, we will assist with your property purchase or refinance, and you can start using your SBA loan to expand and strengthen your business.

Get Started with an SBA Loan Today!

At JZ Mortgage, we specialize in helping small businesses secure the funding they need to succeed. Our team of SBA loan experts will guide you through the entire process, ensuring you get the best financing solution for your business.