SBA loans carry the lowest rates available to most small businesses because a portion of the loan is guaranteed by the U.S. Small Business Administration. That guarantee lets lenders extend longer terms and lower pricing than a conventional business loan would allow. Rates start at Prime +2%.
|
Loan amount |
$50,000 – $350,000 |
|
APR range |
15% – 23% |
|
Origination fee |
5% of loan amount |
|
Term |
3 – 5 years |
|
Time to close |
1 – 2 weeks, frequently under one week |
We publish these numbers because you should be able to price the decision before you spend time on an application. Your actual rate depends on time in business, credit profile, and debt service coverage. All terms are subject to credit approval and can change without notice.
How much financial detail underwriting needs depends entirely on how much you’re borrowing.
The fastest path. No tax returns, no financial statements.
The same underwriting depth an SBA lender applies, on a conventional timeline.
If you’re near the $100,000 line and don’t have current financials ready, sizing the request just under it can be the difference between funding this week and funding next month.
| Factor | Requirement | Weight |
|---|---|---|
|
Time in business |
3 years minimum |
Primary factor |
|
Credit score |
675 minimum |
Secondary |
|
Debt service coverage |
Above 1.2x |
Secondary |
|
Comparable credit |
50%+ |
Required |
Time in business carries the most weight. A four-year-old business with a 690 score and clean coverage is a stronger file than a two-year-old business with a 750. Operating history is the thing this program is actually buying.
Comparable credit means demonstrated history managing credit at a similar size to what you’re asking for. The 50% threshold means the largest credit obligation you’ve successfully carried should be at least half the size of your request. If you’re asking for $200,000 and the biggest note you’ve handled is $30,000, that gap has to be closed — usually by sizing the request down rather than by finding a different lender.
Worth checking before you apply, because both are fixable:
1. Overextended debt. Existing obligations already consume the cash flow that would service the new loan. Run your coverage ratio first — if it’s under 1.2x, a smaller request is far more likely to fund than the same request submitted somewhere else.
2. Insufficient comparable credit. No track record managing credit at the size being requested.
Neither is usually a permanent no. Both respond to a smaller ask or a few months of preparation.
The common thread is a defined, revenue-generating use of funds with a deadline attached. This suits businesses with three or more years of operating history and consistent monthly revenue that need to act on something before an SBA process could realistically close.
One to two weeks in most cases, and often under a week on application-only files between $50,000 and $100,000. Larger requests take longer because of the full financial review, but still close inside two weeks in most cases.
Not for requests between $50,000 and $100,000. That tier is underwritten on a signed application, four months of business bank statements, ID, and comparable credit evidence. Above $100,000, two years of tax returns or audited financials are required.
APR runs 15% to 23% depending on your file, plus a 5% origination fee on the loan amount. On a $100,000 loan the origination fee is $5,000. Where you land in the APR range depends primarily on time in business, then credit score and coverage ratio.
Speed and cost, in opposite directions. This closes in one to two weeks; an SBA business loan takes 15 to 60 days depending on size. This carries a 15–23% APR; SBA pricing starts at Prime +2%.
Take the SBA loan if your timeline allows it. Take this one if it doesn’t.
675 minimum. Credit is weighted as a secondary factor behind time in business, so a strong score won’t rescue a file with only two years of operating history — and a merely adequate score won’t sink an otherwise solid one.
Evidence that you’ve successfully managed credit of a similar size to what you’re requesting. Lenders want to see that a $200,000 obligation isn’t an order of magnitude beyond anything you’ve handled before. The requirement here is 50% — the largest obligation you’ve carried should be at least half your requested amount.
Three years is the minimum for this program. Under three years, an SBA business loan may still fit — the SBA tiers require two years in business.
Yes. Inventory purchases, seasonal inventory build, and equipment financing are among the most common uses, along with expansion initiatives and vendor deposits on contracted work.
No. This is a structured term loan with a fixed three-to-five-year repayment schedule. It isn’t a factoring arrangement, a revenue share, or a daily-remittance product.
No real estate is required — property is neither collateral nor an eligible use of funds for this program. If you’re financing property, see commercial real estate loans.
* All rates & requirements listed on this page are subject to change without notice.
Contact Standout Loans and an advisor will help you determine the best loan for your scenario.
You’ll be assigned to a Standout Commercial Loans expert who will guide you through the process.
Your loan expert will present you with the best available options for your loan.
