• Banks, Credit Unions, and non-Bank Lenders


  • For-profit businesses (usually privately owned),
  • Located in the United States,
  • Businesses not engaged in illegal or prurient operations


  • Maximum loan amount in $5,000,000. Loans up to $150,000 are 85% guaranteed, loans more than $150,000 are 75% guaranteed. (For example, $750,000 of a $1,000,000 loan is guaranteed)

Use of loan proceeds:

  • Funding for existing businesses, business acquisitions, and start-ups, including franchises. 

Maximum Term:

  • Up to 25 years for Real Estate
  • Up to 10 years for Fixed Assets
  • Up to 7 years for Working Capital 

Note: Multiple uses of funds usually result in a "blended" loan repayment term.

Interest Rate:

  • For loan repayment terms <7 years, Wall Street Journal Prime plus 2.25%.
  • For loan repayment terms > 7 years, WSJ Prime plus up to 2.75%.
  • Fixed interest rate pricing can be available at lender's discretion. 


  • A first lien position on all business assets. 
  • Personal assets may also be required, and a Personal Guarantee will be required from all 20% or more business owners.


  • 2% of the guaranteed loan amount.


  • For start-ups, a Business Plan, with projected financial results, will be required.
  • Borrowers should work with Preferred SBA lenders, as they have the most experience reviewing and approving SBA loans and can make their own credit decisions. 

About the Author(s)

 Richard  Kroger

Richard Kroger is a SCORE Bucks County volunteer and certified mentor. In his professional career, he worked for 30 years in the business financing industry, including 10 years as an SBA lender.

SCORE Certified Mentor, SCORE Bucks County