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Small Business Loan Programs Backed by the SBA

Written by | Securityplus FCU

The U.S. Small Business Administration (SBA) was founded as an independent federal government agency to help American businesses get started, compete, and thrive by helping business owners access funding. Today, there are 36.2 million small businesses in the U. S., comprising 99.9% of all businesses. The SBA has a variety of resources available for small businesses, including programs for businesses owned by women, veterans and Native Americans. If you a thinking about starting a small business in Maryland or are a small business looking for a loan, this article will explore the most popular types of SBA financing that could be available to you.

Types of Small Business Administration Loans

Although the SBA offers several helpful loan programs and resources, they don’t directly finance business loans. Their role is to create guidelines for loans that an SBA lender, like Securityplus Federal Credit Union will underwrite, by offering a “guarantee” to help reduce the risk to the lender since the SBA is promising to pay back a portion of the loan if the business owner defaults. What that means is that when you apply for an SBA loan with Securityplus FCU you’re technically applying for a commercial loan with SBA loan requirements, which may help more business owners qualify for funding where they may not otherwise.

SBA 7(a) Loan

The SBA 7(a) loan is generally used to fund the purchase of new equipment, inventory and supplies, upgrading or constructing a new building, covering operating expenses, seasonal financing and other capital needs. This type of SBA financing can also be used to start a new business, acquire a business or expand an existing business. Facts to know about SBA loan 7a:

  • Average 7(a) Loan Size in 2025: $458,497
  • Max 7(a) Loan Cap: $5 million

SBA 504 Loan Program

The Certified Development Company (CDC)/504 SBA Loan is suited for businesses who need financing for fixed assets, such as equipment or real estate. You could use an SBA 504 loan to:

  • Buy land or buildings
  • Improve your business’s area (e.g. parking lot, street, landscaping, etc.)
  • Build new facilities or upgrade your current one
  • Buy equipment or machines

Note that you cannot use an SBA 504 loan for working capital, to repay debt or invest in a risky real estate deal. Facts to know about 504 loans:

  • Average 504 Loan Size in 2025: $1,154,122
  • Max 504 Loan Cap: $5.5 million

SBA Disaster Loans

When Mother Nature strikes down your Maryland business or home, you can turn to the SBA for help. The SBA offers disaster loan assistance to help business owners, nonprofits, homeowners and renters receive low interest financing to get back on their feet. Types of disaster loans include:

  • Physical damage loans
  • Economic Injury Disaster Loans (EIDL)
  • Military Reservist Economic Injury Disaster Loans (MREIDL)
  • Mitigation Assistance

If your business is located in an area covered by a declared disaster and you can’t get credit elsewhere, then you may apply for an SBA Disaster Loan to help repair or replace the damaged property. You may also use this SBA loan type to receive a working capital loan to relieve the “economic injury” created by the disaster. Check the SBA’s running list of current declared disasters to see if an event qualifies. Facts to know about disaster loans:

  • Average Disaster Loan in 2024: $61,300
  • SBA Microloan Cap: $2 million

SBA Microloan

Another SBA loan program is an SBA microloan, which offers up to $50,000 in funding to small businesses and some non-profit childcare centers startups. These loans can be used for working capital, inventory and supplies, furniture or fixtures and equipment or machines. Facts to know about SBA microloans:

  • Average SBA Microloan in 2025: $13,000
  • SBA Microloan Cap: $50,000

Which Loans Are Best?

If you need...

You may want to start with:

Why?

Inventory, payroll support, operating cushion, marketing, supplies, or general growth capital

7(a) or Mircoloan

7(a) supports larger and more varied needs; Microloan works for smaller funding requests

To buy an existing business, finance a partner buyout, or fund a broad acquisition package

7(a)

It can combine business acquisition, working capital equipment, and eligible real estate in one financing package

To buy or  build an owner-occupied building, renovate a facility, or heavy equipment

504

It is specifically structured around fixed assets and longer repayment periods

To restore property or stabilize operations after a qualifying disaster

Disaster loan

The financing is tied to uninsured disaster damage or disaster-related economic injury

Under $50,000 for equipment, initial inventory, fixtures, or working capital

Microloan

It targets small-dollar financing and is delivered through nonprofit intermediaries

This table is provided for informational and educational purposed only and should not be considered financial advice.

SBA Loan Requirements

The SBA guidelines for each of their loan programs are very detailed. The criteria range from the size of a business to not owing money to the government. The easiest way to wade through the SBA loan requirements and details is to explore the official SBA website and to work directly with a Securityplus Federal Credit Union business services specialist. We are here to offer advice and guidance throughout the loan process.