SBA 7(a) — The Workhorse

Most common SBA program for San Francisco | Bay Area businesses

• Use for: Acquisition, working capital, real estate, equipment, partner buyout, refi
• Max loan: $5 million
• Term: 10 years (most uses), 25 years (real estate)
• Down payment: 10% (acquisition), 15-25% (working capital)
• Best for: Most San Francisco | Bay Area owners. This is what we close most often.

SBA 504 — Real Estate & Heavy Equipment

Below-market fixed-rate financing for owner-occupied real estate

• Use for: Owner-occupied real estate, construction, heavy equipment
• Max loan: $5M SBA + bank portion (project sizes $20M+)
• Term: 25 years (real estate), 10 years (equipment)
• Down payment: 10% (15% for special-use or new businesses)
• Best for: San Francisco | Bay Area business owners buying their building.

SBA Express — Fast & Smaller

Quicker decision, smaller max loan

• Use for: Working capital, lines of credit, small acquisitions
• Max loan: $500,000
• Term: 7-10 years
• Down payment: Lender’s discretion
• Best for: Speed and smaller amounts. Higher rate, less SBA guarantee.

Business Acquisition

Buying an existing San Francisco | Bay Area business is the most common SBA 7(a) use. As little as 10% down on deals up to $5M, 10-year amortization. We close more deals here than any other category.

Commercial Real Estate

SBA 504 lets you buy owner-occupied San Francisco | Bay Area property with 10% down and lock in long-term fixed-rate financing. Office, retail, industrial, warehouse, restaurant — anywhere your business operates.

Working Capital

SBA 7(a) working capital covers inventory, marketing, payroll, and seasonal needs. Typical amounts $50K-$500K, rates fixed against prime, 10-year amortization.

Partner Buyout

Buy out a co-owner using SBA 7(a) financing. Keeps the business intact, transfers ownership cleanly, and works for amicable splits or forced exits alike. Structure matters here.

Equipment Financing

Heavy equipment, machinery, vehicles, restaurant equipment, technology. SBA financing typically beats equipment-specific lenders on rate, with up to 10-year amortization for long-life assets.

Franchise Purchase

SBA financing is the standard for franchise acquisitions in San Francisco | Bay Area. Approved franchises in the SBA Franchise Directory can close with as little as 10% down. We’ve worked with most major franchise concepts.

Debt Refinancing

High-rate business debt can often be refinanced into a lower-rate SBA 7(a) with longer terms. Substantially improves cash flow. We assess feasibility upfront so we don’t waste your time on deals that won’t pencil.

How much can I borrow with an SBA loan in San Francisco | Bay Area?

SBA 7(a) loans go up to $5 million. SBA 504 loans (real estate/equipment) can fund total projects of $20M+ when you combine the CDC and bank portions. In 2025 the average San Francisco | Bay Area SBA loan was $456K, but deals range from $50K to over $5M.

What rates can I expect on an SBA loan in San Francisco | Bay Area?

SBA rates are tied to the prime rate plus a margin (typically prime + 2.25% to prime + 4.75%). In 2025 the average San Francisco | Bay Area SBA 7(a) rate was 10.57%. Rates vary by lender, deal size, and structure — larger, stronger deals get better rates. The lender that fits your deal type matters.

How long does an SBA loan take to close in San Francisco | Bay Area?

Most SBA 7(a) acquisition loans close in 60-90 days from application to funding. Working capital loans can be faster (45-60 days). SBA 504 (real estate) typically runs 90-120 days because two loans must close together — the CDC portion and the bank portion.

What credit score do I need for an SBA loan?

Most SBA lenders want a personal credit score of 680+, though some accept down to 650 for strong deals. The SBA itself doesn’t set a minimum — individual lenders do. Their bar varies based on the deal’s overall risk profile.

Can I use an SBA loan to buy a business in San Francisco | Bay Area?

Yes — business acquisition is the most common SBA 7(a) use. You’ll need ~10% down (sometimes 5% if seller financing fills the gap), management experience in the target industry, and the target business needs to show roughly 1.15x or better debt-service coverage. Most of our San Francisco | Bay Area deals close this way.

Do you charge fees as a broker?

No. We’re paid by the lender after your loan closes — never by you. You don’t write us a check for application, prep, or close. The SBA requires this if a broker wants to stay compliant.

Who is the best SBA lender in San Francisco | Bay Area?

Live Oak Banking Company funded the most volume in San Francisco | Bay Area in 2025 ($7.6M). Bank of America, National Association had the lowest average rate at 6.71%. But "best" depends on your deal — industry, size, structure, and lender appetite. That’s what we figure out for you.

Can a startup get an SBA loan in San Francisco | Bay Area?

Yes. About 21% of San Francisco | Bay Area SBA loans went to startups in 2025. The bar is higher: stronger credit (typically 700+), more cash down (often 20-30%), industry experience, and a thorough business plan. We’re selective about which startups we take on — we don’t pursue deals that won’t close.

What can I NOT use an SBA loan for?

SBA loans cannot fund passive real estate investment (you must occupy 51%+), personal expenses, gambling, adult-oriented businesses, illegal activity, lobbying, or speculative ventures. SBA also restricts certain industries (some agriculture, religion-affiliated, life-insurance sales).

How does the SBA broker process work?

You fill out our intake form, we have a 30-min call to qualify the deal, we collect a standardized document package, we shop 10+ lenders, you review term sheets side-by-side, you pick the best offer, that lender underwrites and closes. We coordinate everything in between. See full process ↑

Do I need a down payment for an SBA loan?

Yes — SBA loans require equity injection. For business acquisitions: typically 10% (can be cash plus seller financing). For SBA 504 real estate: 10% (15% if special-use building or startup). For SBA 7(a) working capital: 10-15% on amounts over $25K.

Can I prepay an SBA loan?

SBA 7(a) loans with 15+ year terms have a prepayment penalty in the first 3 years (5% / 3% / 1% of the prepaid balance). After year 3, no penalty. SBA 504 has a 10-year declining prepayment penalty starting at 3%.