Financing programs · SBA Lending
SBA loans for acquisitions, expansion and owner-occupied real estate.
SBA loans are bank loans partially guaranteed by the U.S. Small Business Administration. They are built for businesses that are sound but can't get the terms they need from a conventional loan. FOCUS Lending helps borrowers choose between the 7(a) and 504 programs, prepares the package and places it with an SBA lender that fits the deal.
SBA lending at a glance
What it is
Loans from SBA-approved lenders, with part of each loan guaranteed by the SBA. The guarantee lets lenders offer longer terms and smaller down payments than many conventional loans.
Main programs
SBA 7(a) for most business purposes, including acquisitions and working capital. SBA 504 for owner-occupied real estate and major equipment.
Best fit
Established or acquiring businesses with demonstrable cash flow that need longer terms, more leverage or more flexibility than a bank will offer conventionally.
Our role
We assess eligibility, recommend the program, assemble the credit package and present it to SBA lenders. The lender makes the credit decision.
SBA programs we work with
SBA 7(a)
SBA's most widely used program. It can fund business acquisitions, partner buyouts, working capital, equipment, owner-occupied real estate and the refinance of eligible business debt. Real estate loans can carry maturities of up to 25 years; most other uses run up to 10 years.
SBA 504
Long-term, fixed-asset financing for owner-occupied commercial real estate and long-lived equipment. A conventional lender provides a first-lien loan, a Certified Development Company (CDC) provides an SBA-backed second-lien loan with a fixed rate, and the borrower contributes the balance.
7(a) and 504 together
Some larger or more complex projects may use both programs — for example, a 504 for the building and a 7(a) for the business acquisition, working capital or equipment. Whether a combined structure is available depends on SBA eligibility and permitted-use rules, program limits and the lenders involved, and must be evaluated for each transaction.
USDA Business & Industry
A government-guaranteed alternative for businesses in eligible rural areas, which can be relevant for larger projects or where SBA limits are a constraint.
What SBA loans can finance
- Business acquisitions and changes of ownership
- Franchise purchases and new franchise locations
- Partner and shareholder buyouts
- Purchase or construction of owner-occupied commercial real estate
- Expansion, renovation and leasehold improvements
- Machinery and equipment
- Working capital and inventory
- Refinancing eligible business debt on better terms
Who SBA lending fits
Generally a good fit
- For-profit businesses operating in the U.S. that meet SBA size standards
- Buyers acquiring an established business with a documented earnings history
- Owners buying the building they operate from (generally at least 51% owner-occupied for existing buildings and 60% for new construction)
- Borrowers a bank declined for a conventional loan due to term, collateral shortfall or leverage — not due to the business being unable to repay
- Owners willing to provide personal guarantees (generally required for owners of 20% or more under current SBA rules; lenders may require others)
Usually a better fit elsewhere
- Passive real estate investment (non-owner-occupied rentals) → see Commercial Real Estate Lending
- Deals that must close in days or weeks → see Private Bridge Lending
- Businesses without the cash flow to support the debt
- Ineligible business types under SBA rules, such as lending or speculative businesses
Typical SBA scenarios
Illustrative situations we commonly see. Every structure depends on the borrower, the collateral and lender approval.
Buying an established business
A buyer acquires a profitable company from a retiring owner. A 7(a) loan funds most of the price over 10 years, with the buyer's equity injection and, where eligible, a seller note completing the structure.
Buying the building instead of leasing
An operating company that occupies most of a building buys it. A 504 structure provides long-term financing, with a fixed rate on the CDC portion and a lower down payment than a conventional commercial mortgage.
Partner buyout
One owner buys out another. A 7(a) loan finances the purchase of the departing partner's interest, preserving the company's working capital.
Declined for a conventional expansion loan
A bank wanted a shorter amortization and more collateral than the business could provide. The same request, restructured as a 7(a) with a longer term, lowers the monthly payment and improves debt service coverage.
How FOCUS Lending works with you
FOCUS Lending Inc. is a commercial financing advisory and brokerage firm based in Columbus, Ohio, serving borrowers nationwide. It was founded in 2021 by Jason McBride, who has more than 20 years of experience in banking and commercial lending. We are not a direct lender. We structure each request, prepare the credit package and present it to lenders whose criteria fit the deal.
Tell us about the deal
Share the request, the use of funds and what has happened so far, including any bank decline.
Lender-style review
We review the financials and collateral the way a credit officer will and flag issues before a lender sees them.
Structure and package
We recommend the program and structure, then assemble a complete, lender-ready credit package.
Lender placement
We present the deal to lenders whose criteria fit and help you compare terms through to closing.
What to have ready
A complete package up front can help the review move efficiently. Lenders may request more depending on the deal.
- Three years of business tax returns and year-to-date financial statements
- Personal financial statement and personal tax returns for each owner of 20% or more
- Business debt schedule
- For acquisitions: purchase agreement or LOI, the seller's financials and a summary of the buyer's experience
- For real estate: purchase contract, property details and, for construction, a budget
- A short summary of the request: amount, use of funds and timing
SBA Lending: frequently asked questions
Can I get an SBA loan after my bank turned me down?
Often, yes. SBA loans exist for businesses that can't get comparable credit elsewhere on reasonable terms. A bank's conventional decline isn't disqualifying. What matters is why the bank declined. If the issue was term, collateral or leverage, an SBA structure or a different SBA lender may solve it. If the issue was that the business can't repay the debt, a different program won't fix that. We review the decline reason first and tell you which situation you're in.
What is the difference between SBA 7(a) and SBA 504 loans?
SBA 7(a) is the general-purpose program. It can fund acquisitions, working capital, equipment, real estate and debt refinancing. SBA 504 is limited to fixed assets — mainly owner-occupied real estate and long-lived equipment. A 504 splits the financing between a conventional first lien, an SBA-backed CDC second lien with a fixed rate, and the borrower's contribution. For buying a building, 504 often offers a lower down payment and fixed-rate exposure. For buying a business, 7(a) is usually the program.
How much down payment do I need for an SBA loan?
It depends on the program and the use of funds. 504 projects commonly require a borrower contribution of around 10%, and more for start-ups or special-purpose properties. Business acquisitions require an equity injection set by SBA's current rules, which tightened in 2025 and govern how much a seller note can count. Because these requirements change, we confirm the current rule for your specific transaction before you commit to a structure.
Can I use an SBA loan to buy a business?
Yes. Business acquisitions are one of the most common uses of SBA 7(a) loans. Lenders evaluate the target's historical cash flow, the buyer's industry or management experience, the equity injection and the purchase structure. A complete acquisition package includes the seller's financial statements, the purchase agreement or LOI and the buyer's personal financial information.
Do SBA loans require collateral and personal guarantees?
Under current SBA rules, owners of 20% or more generally must provide a personal guarantee. SBA rules change over time, and lenders can require guarantees beyond that minimum — for example, from owners with smaller stakes, spouses or affiliated businesses — so the guarantor requirements for any loan depend on the SBA rules in effect and the lender's own requirements. Lenders take available business assets as collateral and, for larger loans, may take a lien on personal real estate where there is meaningful equity. A shortfall in collateral on its own is not usually a reason to decline an SBA loan, which is one reason SBA can work when a conventional loan doesn't.
How long does an SBA loan take to close?
SBA loans take longer than most conventional loans because of the additional eligibility review and documentation. Timing depends on the lender, the program, third-party reports such as appraisals and environmental reviews, and how complete the borrower's package is at the start. A complete, well-organized package can help avoid delays. If you face a hard deadline, tell us up front — it affects which lender and program make sense.
Does FOCUS Lending make SBA loans directly?
No. FOCUS Lending is a financing advisory and brokerage firm. We evaluate the request, recommend the right program and structure, prepare the credit package, and present it to SBA lenders whose criteria fit. The lender issues the commitment and funds the loan.
How is FOCUS Lending compensated?
FOCUS Lending Inc. may receive compensation from the borrower, the lender, or a combination of both, depending on the financing transaction. Applicable fees and compensation arrangements are disclosed as part of the financing process.
Related financing programs
Commercial & Industrial (C&I) Lending
Working capital, lines of credit, equipment, receivables and acquisition financing.
Learn more →
Commercial Real Estate Lending
Investment property, owner-occupied, multifamily, construction and refinance.
Learn more →
Private Bridge Lending
Short-term financing for time-sensitive and transitional deals.
Learn more →
Have a deal that needs a second look?
Tell us what you're trying to finance. We'll review it with a lender's eye and tell you what's realistic.
FOCUS Lending Inc. arranges financing and does not make loans directly. All financing is subject to lender underwriting, credit approval and documentation. Programs, terms and eligibility vary by lender and change over time.