Lending Library

SBA loans are one of the most popular ways for small business owners to secure affordable financing. Features like low interest rates and extended SBA loan repayment terms make funding more accessible, but they also create high demand, so competition for loan approval can be steep.

The loan application requires careful attention to detail. Accuracy is critical, and you’ll need to follow a clear set of steps. Otherwise, a single mistake could derail the process, costing you time and potentially leading to a loan denial.

Understanding exactly how to get an SBA loan approved and the top application mistakes to avoid could be the difference between securing the funds you need and starting over from scratch. Here’s what you need to know.

SBA loan applications require extra attention.

The SBA loan application process is more detailed than many expect. SBA financing has stricter requirements, leading to more paperwork and additional layers of review.

It’s important to note that the SBA does not issue loans directly. Instead, it partners with approved banks, credit unions, and online lenders that follow SBA guidelines for evaluating and processing applications.

The process typically starts with gathering financial documents, completing SBA-specific forms, and outlining a clear plan for how you’ll use the funds. Then, the lenders are required to verify every detail of your application and make sure your business is a solid credit risk. To pass this examination, it’s important to submit a complete, accurate, and well-documented application.

Common SBA loan application mistakes to avoid.

Even businesses with solid backgrounds and strong credit profiles can sometimes get tripped up during the SBA loan application process. Here’s a look at some of the most common mistakes business owners make, and how to avoid them.

Incomplete or disorganized documentation.

Lenders need a full picture of your business before they can approve your loan, so you’ll need to provide every requested piece of documentation. This includes:

• SBA Form 1919
• Recent tax returns
• Financial statements
• Your business plan
• A clear breakdown of how you’ll use the funds

Failing to provide these items can slow down your approval and could stop it altogether. Avoid this common mistake by creating a checklist and reviewing everything with a trusted advisor before hitting submit.

Underestimating the importance of credit.

When you’re applying for a business loan, your personal credit doesn’t matter—right? Actually, when you’re dealing with SBA loans, that’s not the case. Your personal credit history helps lenders evaluate risk, so that’s typically one of the first things they’ll look at. Make sure you’re prepared by reviewing your most recent credit report well ahead of time. This can help you identify errors or other issues that need to be addressed before you apply.

Overstating financial projections or revenue.

It’s tempting to present big growth numbers, especially when you’re excited about the direction your business is headed. But if your projections aren’t based on verifiable data or market trends, they can raise red flags. Lenders want to see realistic, well-supported forecasts, so be honest about your revenue. Back up your projections by explaining your assumptions and showing that while your goals are ambitious, they’re also grounded in reality.

Lack of clear loan purpose.

SBA lenders want to know exactly where the money is going and how it will help your business grow or stabilize, so vague or inconsistent explanations for how you’ll use the funds could raise more red flags.

The more specific your answers, the better. Whether you’re planning to use the funds for payroll, equipment, or working capital, make sure you can show that each dollar is tied to a clear business goal. This shows that you’ve given it plenty of thought and will use the money to make smart business moves.

Ignoring debt-to-income or debt-service coverage ratios.

Make sure you’re realistic about how much debt your business can afford to repay. Before approving a loan, SBA lenders look closely at your debt-to-income (DTI) and debt-service coverage ratio (DSCR). These calculations help assess your ability to handle an additional loan. If the numbers don’t make sense, they may deny your application, even if everything else checks out.

Before submitting your SBA loan application, carefully run the numbers and make sure the amount you’re requesting aligns with what your business can reasonably support.

Not understanding the SBA loan type you’re applying for.

Applying for the wrong type of SBA loan can delay your application or lead to a mismatch in funding. For example, an SBA 7(a) loan may work well for general business needs, while a 504 loan is better suited for purchasing real estate or equipment. And if your business is fairly new and you meet the requirements, you may benefit from applying for an SBA Microloan instead.  

To avoid this mistake, take the time to research your options or meet with a loan advisor who can help you choose the program that best fits your business goals.

Skipping the business plan (or submitting a weak one).

A strong business plan shows lenders where your business is headed and how you’ll get there. Generic, outdated, or incomplete plans can lead lenders to believe you haven’t fully thought through your strategy or aren’t committed to the long-term success of your business.

Creating a robust business plan is well worth the time and effort it requires. Make sure your plan includes your current financials, clear growth strategies, and a thorough competitive analysis. Demonstrating that your business plan aligns with the loan request helps lenders see that you’re thinking strategically and ready to use the funds with purpose.

Strengthen your SBA loan application.

Once you’ve sidestepped the most common SBA application mistakes, there are a few additional things you can do to make sure your submission is as strong and lender-ready as possible. Taking these steps can help speed up the process and may boost your chances of approval:

• Stay organized: Keep all of your paperwork in a digital folder so it’s easy to access and update
• Work with a professional: An accountant or small business advisor may help spot missteps before you submit
• Be transparent: Most challenges will come up during the review process anyway, so it’s better to be upfront. Let lenders know what you’ve overcome and how your business is stronger because of it
• Double check everything: Review the SBA’s official borrower checklist and lender guidelines before submitting your application

A complete, well-prepared application shows lenders you’re serious, and may make it easier for them to say yes.

Use the SBA application process to strengthen your business.

SBA loan application mistakes are fairly common. Even experienced business owners can miss a step, but with the right preparation, most errors are avoidable.

The application process is about more than completing paperwork. It’s an opportunity to polish your business plan, get a clear picture of your financials, and build confidence in exactly what you’ll do with the funds. Not only will this level of clarity help improve your chances of approval, but it can also help you run a more successful business.

Take the next step toward reaching your business goals. Explore SBA loan options with Lendio and check your eligibility today.  

The words “flexible” and “financing” don’t seem like they should be in a sentence together. When you think of financing, you may think of a stuffy banker stamping rejections on loan applications. Maybe you think about how your business is stalled in growth because you’ve reached the end of your credit line. It is not often that you think about financing options that are flexible to your needs. They do exist, however. Here are some flexible financing options for your small business.

Does your financing plan account for unexpected losses?

As we have all seen, life is unpredictable. Your business could be performing well, but then revenue may drop off a cliff for outside reasons. Here is where that flexibility will come in handy. The COVID-19 pandemic was terrible for small businesses, and it also shed light on some huge holes in small business finances. Many small business owners turn to personal funds to keep their businesses afloat because they lack cash reserves. If anything, the pandemic taught small business owners the importance of access to flexible financing and being prepared for unforeseen challenges.

Flexible financing options.

Many business owners found they were at risk of breaching their banking covenants with the sudden revenue loss. Some business owners were struggling to meet payroll. Others had to close altogether. To keep the lights on for your business, you either need a large cash reserve or flexibility in your financing. If you have maxed out a bank line of credit, do you have access to working capital from somewhere else? Is your bank willing to extend your credit limit?

Equipment financing

It is worth considering some supplemental financing options to round out your financing plan. Equipment financing is a great option that can unlock working capital to support your business growth. Equipment financing is a loan that you can use for specific reasons, like buying manufacturing gear or any other equipment you need for your business. If you are looking to upgrade your cybersecurity and tools because you have moved mostly remote, equipment financing can cover those costs. This type of financing will be a loan that probably has strict repayment terms, but you can use the money pretty flexibly for your business’s needs. 

Accounts receivable financing.

Accounts receivable financing can help you meet payroll while waiting to collect on your receivables. In simpler terms, the amount of capital you can access is based on the amount of capital you are waiting to collect from your customers. With accounts receivable financing, you can add to your team without the stress of adding to your overhead. Since it’s based on your outstanding invoices, it does not require a high credit score or lengthy time in business, which makes the approval requirements very flexible. This type of financing is similar to a line of credit, but the limit will not be as rigid. Typically, the higher your accounts receivable, the more capital you can access.

Line of credit.

A line of credit gives you some flexibility in drawing capital and repaying it. You don’t have to use all the money, and you only pay interest on the amount you use. Online lenders and traditional banks offer lines of credit, and it’s a great tool to have available if you want a more flexible financing plan.

Revenue-based financing

Revenue-based financing—also called a business cash advance— is basically a lump sum of cash that is repaid through daily or weekly withdrawals based on your future earnings. These are typically costly because the interest rates are high. Make sure you read your contract carefully before taking out a cash advance.

Which Flexible Funding Option Is Right for You?

Most of these financing options can work together to round out your financial plan. For example, you can use accounts receivable financing to cover your payroll and also take out an equipment loan to cover your production tools. You could use a cash advance alongside a line of credit. It is crucial to consider your business and your industry when signing up with a new lender. It’s best to choose a lender that knows your industry and can offer solutions to your unique financing challenges. Ultimately, your financing plan should include some flexibility to account for sudden gains or sudden losses.

Presented by QuickBooks Capital 

This article is presented in partnership with QuickBooks Capital, helping small businesses access flexible financing when it’s needed most.

‍

Every business has its version of a rainy day. An unexpected expense, a delayed customer payment, or a slow sales month that throws you off your rhythm.

These moments don’t always spell disaster, but they can create serious cash flow strain—especially if you’re unprepared. That’s why building a business safety net is one of the smartest financial moves you can make.

Whether it’s a small emergency fund, access to flexible capital, or a combination of both, having backup resources on hand can help you weather the storm and keep your business moving forward.

1. Build a basic emergency fund.

Your first layer of protection is straightforward: an emergency savings account dedicated to your business.

Many business owners skip this step because their margins are thin. But that’s exactly why it matters. By treating savings like a recurring expense—just like rent or payroll—you can gradually build a cushion that helps you stay afloat when things don’t go as planned.

A good rule of thumb? Aim to set aside three to six months’ worth of operating expenses. That might sound ambitious, but you don’t need to get there overnight. Start small and build consistently.

Your emergency fund can cover:

• Unexpected equipment repairs
• Delays in customer payments
• Temporary dips in sales
• Even growth opportunities—like a chance to buy discounted inventory or expand your space

If you’re using QuickBooks Online, you can monitor income, expenses, and trends to help determine how much to save each month. Then, you can set a recurring transfer to automate your contributions.

2. Secure a business line of credit

Think of a business line of credit as your second layer of defense—funding that’s there when you need it, and invisible when you don’t.

Unlike a traditional term loan, a line of credit (LOC) gives you access to a set amount of capital that you can draw from at any time, and you only pay interest on what you use.

It’s ideal for:

• Covering delayed receivables
• Managing unexpected costs like repairs or supply chain delays
• Taking advantage of time-sensitive growth opportunities

3. Have a plan for when you don’t have a cushion.

Not every business has the luxury of a fully stocked emergency fund or a pre-approved line of credit. That doesn’t mean you’re out of options—it just means you need a plan.

If an unexpected expense hits and you don’t have cash on hand, here’s what to do:

• Assess the urgency: Is it something that needs to be handled today, or can it wait 30 days while you adjust?
• Revisit your cash flow forecast: Look for slow-paying invoices, unnecessary spending, or opportunities to shift resources.

Explore financing options: You may still qualify for a line of credit or a term loan based on your business performance—even if you haven’t saved up.

Having a plan—even if it includes financing—is better than being caught off guard. Smart business owners know that preparation doesn’t mean perfection. It means thinking ahead.

Be prepared, not panicked.

Rainy days in business are inevitable—but stress doesn’t have to be.

By building a financial safety net with three simple layers—emergency savings, access to flexible credit, and a clear plan for when funds run low—you give your business the resilience to face challenges and pursue opportunities without hesitation.

Whether you’re just getting started or ready to strengthen your current financial strategy, the best time to prepare is now.

Presented by QuickBooks Capital 

This article is presented in partnership with QuickBooks Capital, helping small businesses access flexible financing when it’s needed most.

Financing a seasonal business isn’t easy. You need up-front capital to prep for the busy season, and then you need ongoing cash to keep up with mid-season expenses and unexpected slowdowns. For many business owners, relying on sales alone isn’t sustainable.

First, we’ll explore how seasonal financing can support your day-to-day operations. Then we’ll dive into six funding methods that work well for seasonal businesses.

How to use seasonal financing.

Whether you're gearing up for opening day or navigating a mid-season rush, seasonal financing can be a powerful tool to keep your business operating smoothly year-round. 

Here are a few smart ways to put seasonal financing to work:

• Hire extra help to serve more customers during peak periods.
• Stock up on inventory before the season starts, or replenish mid-season to meet demand.
• Purchase equipment or make repairs to keep operations efficient.
• Launch marketing campaigns to build buzz ahead of your busy season.
• Cover cash flow gaps when income is delayed but expenses can’t wait.

6 financing methods for seasonal businesses.

1. Term loan.

A business term loan gives you a lump sum of capital that you repay over a set period—typically with predictable, fixed payments. It’s ideal for seasonal businesses that need funding upfront to prepare for their busy months, or bridge slower periods.

You can use a term loan to cover large expenses like equipment, inventory, marketing, or payroll. By spreading out your payments, you maintain cash flow flexibility while investing in growth. 

2. Business line of credit.

For seasonal businesses, cash needs can change quickly—and that’s where a business line of credit shines. You get approved for a set credit limit and can draw from it whenever you need funds, up to the limit.

A line of credit is especially helpful when you’re not sure how much you’ll need, or when you’ll need a financial safety net for surprise expenses. You only pay interest on the amount you borrow, making it a flexible, cost-effective option for covering instances like payroll, inventory restocks, or last-minute opportunities.

3. Accounts receivable financing.

Making strong sales doesn’t always mean you have cash on hand. If your customers take 30, 60, or even 90 days to pay, you could be stuck waiting on income you need right now.

That’s where accounts receivable financing—also known as factoring—can help. A factoring provider will buy your outstanding invoices and give you an advance (usually 80-95% of their value), then collect payment from your customers. Once paid, they’ll send you the remainder minus any fees.

Sometimes less money today is more valuable than more money tomorrow. If business is booming but your cash is tied up in accounts receivables, this can be a great way to get you the money you need to fund your busy season.

4. Revenue-based financing.

Revenue-based financing (RBF)—sometimes called business or merchant cash advance—provides a lump sum of capital that you repay as a percentage of your daily or weekly sales. That means your payments flex with your business—higher during the busy season, lower during the off-season. 

While this model can offer convenience and fast access to funds, it often comes with higher fees and less transparent terms than traditional financing options. Plus, lenders typically evaluate your recent revenue history, which could impact the accuracy of your true seasonal earning potential assessment.

RBF can be helpful in a pinch, but it’s best used after other options have been examined.

5. Small business credit card.

A business credit card can be a helpful tool for managing day-to-day expenses—like restocking supplies, covering minor repairs, or handling last-minute overtime costs. It functions similarly to a line of credit, offering revolving access to funds with flexible repayment.

Some cards come with generous credit limits (up to $50,000 or more), but they also tend to carry higher interest rates. It’s important to use credit cards strategically and aim to pay off the balance in full each month to avoid costly interest charges.

6. Equipment financing

The right equipment can make or break your peak season. Whether it’s a new register to speed up checkouts, a truck to expand deliveries, or a new espresso machine to handle morning rushes, investing in equipment can help you serve more customers and boost revenue.

Equipment financing is one way to spread out the cost of these purchases over time. In some cases, the equipment itself acts as collateral for the loan, making it easier to qualify without putting up additional assets.

An extra cash register or blender can help you process customers faster, helping you make more sales and capitalize on the peak season. More sales now is worth the monthly expense, especially since you'll own the new piece of equipment moving forward and can sell it at a later point if necessary.

Capitalize on peak season.

When you’re running a seasonal business, timing is everything. With the right financing in place, you can stock up, staff up, and step into your busy season with confidence. Whether you’re preparing months in advance or navigating a mid-season surprise, funding can give you the flexibility to perform at your best.

‍

Presented by QuickBooks Capital 

This article is presented in partnership with QuickBooks Capital, helping small businesses access flexible financing when it’s needed most.

Running a business means staying ready for anything—whether it’s a sudden expense, a slow sales month, or a new growth opportunity you didn’t see coming. That’s where a business line of credit comes in.

A line of credit (LOC) is a flexible funding solution that gives you access to a set amount of capital, which you can draw from as needed. Unlike a traditional loan, you don’t receive a lump sum up front. Instead, you borrow only what you need, when you need it—and repay only what you use.

This makes a line of credit ideal for:

• Bridging cash flow gaps
• Covering unexpected costs
• Investing in short-term growth initiatives

Whether you’re stocking up on seasonal inventory, managing a delay in customer payments, or launching a new marketing campaign, a line of credit gives you the flexibility to act without disrupting your cash flow.

Through QuickBooks Capital, eligible Intuit QuickBooks Online users can apply for a line of credit directly within their account—making it easier to manage both your books and your borrowing in one place.¹

Why a Business Line of Credit Works for Small Businesses

Choosing the right type of funding is critical, especially when you need flexibility. Here’s why a business line of credit is one of the most useful financial tools for small business owners.

1. Use it when you need it, repay it when you don’t.

Unlike a term loan, a line of credit gives you access to funds on demand. You can typically draw exactly what you need, when you need it, and repay early without penalties. It’s working capital, on your terms.

2. Only pay for what you use.

You’re only charged interest on the portion you borrow—not your total approved limit. That makes a line of credit more cost-effective than taking out a lump sum loan when you’re unsure how much funding you’ll actually need.

3. Bridge short-term cash flow gaps.

Use a line of credit to smooth over delayed customer payments, cover unexpected repairs, or handle months with three payrolls. It’s ideal for the “in-between” expenses that don’t warrant a full loan, but can’t go on a credit card.

4. Fuel business growth without delay.

Whether you’re launching a new marketing campaign, hiring seasonal help, or taking on a big new client, a line of credit gives you the power to act fast without draining your reserves.

5. Separate your business and personal finances.

Keeping business expenses separate is key for accurate bookkeeping and financial planning. A dedicated business line of credit helps you draw clear lines, while building credit in your business’s name.

6. Build business credit over time.

Making on-time payments and using your credit line responsibly can help improve your business credit profile—potentially unlocking better terms and higher limits in the future.

‍

Did you know? QuickBooks Capital offers access to lines of credit using your QuickBooks account information. This solution is faster and easier to apply for than traditional financing options, factoring in your business performance—with no impact on your personal credit score when you apply.

‍

Your line of credit isn’t just for emergencies, it’s a tool

Here are six strategic ways small business owners can use their credit lines to move faster, think bigger, and grow on their own terms.

Collaborate or co-market with another business

Forming a temporary alliance, like co-hosting an event or running a joint campaign, is a smart way to reach new customers and share costs.

Use your line of credit to cover upfront expenses like design work, contract fees, or shared marketing, without dipping into your cash reserves.

Bring in expert help when it counts

Want to shake up your sales strategy, refine your pricing, or improve operations before peak season? A consultant or coach can bring fresh thinking, but often require upfront fees.

Your line of credit lets you invest in expertise when the time is right, and repay gradually.

Go after government contracts

Landing a government contract can be a game-changer, but the bidding process often requires new tools, team members, and compliance investments—long before you get paid.

A line of credit bridges that cash flow gap and positions your business to compete confidently.

Launch or scale a marketing campaign

Digital advertising, content creation, and campaign testing can be expensive—but often essential. A line of credit allows you to fund your campaign in stages, matching spend to ROI.

With a line of credit, you can launch now, then replenish as results roll in.

Expand through franchising

Franchising is a smart way to grow with lower overhead—but getting started takes time and capital. Legal, training, and marketing costs can add up quickly.

Your line of credit helps you build the foundation, without locking into a fixed loan you may not need all at once.

Fulfill a major contract without draining cash flow

Winning a big job or client is exciting, but delivering can be expensive. A line of credit gives you working capital to hire help, purchase supplies, or ramp up production—then pay it back as revenue comes in.

What to look for in a business line of credit

A business line of credit can be one of your most powerful financial tools—but only if it works the way your business does. Here are four things to look for when evaluating your options.

Business-based underwriting

Many lenders rely on your personal credit score. Look for a provider that evaluates your business’s actual performance, like revenue trends, transaction history and cash flow.

Speed and simplicity

The application process shouldn’t take days. A modern line of credit should offer a quick, online application, fast approval decisions, and access to funds in a day or two—if not faster.

Flexibility without surprises

Look for a lender that offers clear terms, no hidden fees, and the freedom to draw only what you need. Bonus points if you can repay early without penalty!

Integration with your financial tools

Your line of credit should work with—not against—your financial systems. When your funding lives in the same ecosystem as your bookkeeping, forecasting, and reporting, everything gets easier.

‍

If you’re a small business owner looking for funding that you don’t have to repay later, you might be wondering whether SBA grants are the answer. While most entrepreneurs are familiar with SBA loans, not everyone knows that the U.S. Small Business Administration also offers grants to small businesses. Yet although SBA grants represent an attractive source of business funding, these federal grant opportunities are often difficult to access due to competition and strict eligibility requirements. 

This guide breaks down how SBA grants work, who qualifies, and the top funding programs currently available. You’ll also find guidance on how to apply, additional funding options if you don’t qualify, and answers to some of the most frequently asked questions about federal small business grants. 

What is an SBA Grant?

An SBA grant is a type of federal funding that’s available through the U.S. Small Business Administration. Unlike SBA loans—which lenders issue and businesses must pay back over time with interest—you don’t have to repay SBA grant funds. However, SBA grants are less flexible than loans and are only available to eligible organizations that must use the funds for specific projects which align with the SBA’s mission. 

In general, SBA grants don’t fund general business expenses or startups. The typical purpose of these grants is to support organizations and programs that help small businesses thrive—such as educational institutions, nonprofits, community organizations, and scientific research and development efforts.

Who is eligible for SBA grants?

SBA grants aren’t available to most individual business owners. Eligible grant applicants usually include:

• Nonprofit organizations
• Universities and colleges
• SBA resource partners (like SCORE and Small Business Development Centers)
• Community-based organizations supporting underserved business owners
• Small businesses conducting qualified scientific or technical R&D
  
  

Of course, each grant features its own eligibility rules. To qualify, your organization must meet specific requirements that may include the community your business serves, your mission, the proposed project, etc.

Types of SBA Grants

Although the SBA doesn’t offer grants for general business operations, the federal agency does offer support through a variety of specialized grant programs to promote innovation, manufacturing, and entrepreneurship for eligible small businesses and organizations throughout the United States. Below are some of the key SBA grant opportunities available at this time.

1. Manufacturing grants

Empower to Grow (E2G) Manufacturing in America Grant

As part of the new (as of April 2025) Made in America Manufacturing Initiative, this new grant provides funding support for small manufacturing businesses and nonprofit organizations. Eligible recipients can receive up to $1.1 million for technical assistance and workforce development in key industries like steel, timber, aluminum, and energy. 

2. Research and development grants

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs

These highly competitive federal grant programs fund small businesses in technology and scientific research and development (R&D)—provided those companies show strong potential for commercialization. They’re ideal for startups and tech firms that are developing innovative products and services. The SBA distributes these grants, alongside 11 federal agencies, and invests around $4 billion per year.  

3. Grants for community organizations supporting small business 

The SBA offers grant funding to mission-driven organizations so they can provide education, training, and other resources to small business owners, especially underserved groups. Below are some examples of SBA grants for community organizations.

Organizations supporting veteran-owned businesses

• Boots to Business (B2B): Boots to Business is a free entrepreneurial training program for active duty service members, veterans, and military spouses. The program empowers eligible participants with skills and resources to start and manage successful businesses. 
• Service-Disabled Veteran Entrepreneurship Training Program (SDVETP): Veterans who are injured in the line of duty have access to several SBA resources to support startups and existing businesses. The SDVETP program features training programs for entrepreneurs through Oklahoma State University, St. Joseph’s University, Warrior Rising, and the Veteran Entrepreneurial Training & Resource Network. 
• Veterans Business Outreach Centers (VBOC): The VBOC offers no-cost entrepreneurial development services to eligible service members, veterans, military spouses, and family members who want to start or grow a small business. There are 31 locations nationwide that provide free business development services to eligible participants.
• Veteran Federal Procurement Entrepreneur Training Program (VFPETP): This training program teaches eligible veterans how to secure and manage federal job contracts. Since 2010, graduates of the program have received over $41 billion dollars in federal prime contract awards. 
• Women Veteran Entrepreneurship Training Program (WVETP): Women veterans and service members have access to targeted entrepreneurship training programs through institutions like Syracuse University, Utah Veteran Business Resource Center, and ONABEN.

4. Grants for organizations supporting innovation

• Federal and State Technology (FAST) Program: The FAST Program provides funding to groups that support small businesses in the scientific and technological R&D space that are applying for federal innovation grants (like SBIR and STTR). FAST grants may help with proposal preparation, team development, and the eventual commercialization of new technology. 

5. SBA resource partner grants

The following grants fund SBA-backed organizations that support entrepreneurs.

• SCORE: SCORE is a non-profit organization that receives funding from the SBA and offers free mentoring and business education to small businesses. Current recipients of the SBA SCORE Award can apply for this grant opportunity. For-profit businesses are ineligible. 
• Small Business Development Centers (SBDCs): Specific funding is available for SBDCs in Northeast California and Pennsylvania to help fill critical vacancies in those areas. 
• Portable Assistance Program: Funding is available for regions facing economic hardship due to a business or government facility closing or downsizing. The goal of this grant is to encourage small business success through technical assistance supporting job creation, employee retention, access to capital, etc.

6. Program for Investors in Microentrepreneurs (PRIME)

The PRIME program is a competitive federal grant for eligible low-income nonprofit organizations and microenterprises (typically with fewer than five employees). PRIME grant recipients are often microenterprise development organizations (MDOs) and similar organizations that use the funds to provide training and technical support to other small businesses—including low-income entrepreneurs who lack access to conventional loans, equity, and other banking services. 

How to apply for an SBA grant

Applying for an SBA grant takes time and planning. If you believe your small business or nonprofit organization may be eligible for an SBA grant, here’s a step-by-step guide to help you start the process.

1. Search for grants. Visit SBA.gov and Grants.gov to look for active opportunities that seem like a good fit for your business or organization.
2. Review eligibility criteria. Make sure your organization qualifies before you spend time filling out an SBA grant application.
3. Register your organization. Typically you need to register your business with the federal government (SAM.gov) to apply for federal grants.
4. Complete the grant application. Applications often require a detailed project proposal, business plan, budget, and supporting documentation. Follow the instructions and be sure to submit a complete application without skipping any steps.
5. Meet the application deadline. Submit your grant application before the deadline since late or incomplete applications are typically disqualified.

SBA grants are highly competitive. So, it may be wise to consult with grant writing experts or review previously funded proposals for additional insight if possible.

Additional resources for small business funding

If your business isn’t eligible for an SBA grant, or if you’re looking for faster, more flexible funding, there are alternative options to explore. Below are several additional business funding resources to consider.

Non-grant SBA funding opportunities

• SBA Microloans: Borrow up to $50,000 for working capital, inventory, equipment, and other eligible business expenses.
• SBA 7(a) Loans: Receive up to $5 million for real estate, working capital, furniture, and business supplies. 
• SBA 504 Loans: Borrow up to $5 million for fixed assets like land and buildings. (Up to $5.5 million is available for eligible energy projects.)

Other business funding opportunities

• Minority small business grants: Minority entrepreneurs, who often face additional barriers, can apply for grant opportunities for startups and existing businesses.
• Women-owned business grants: Small business grants for women offer funding to help start or grow women-owned businesses—companies that often receive far less access to capital compared to male-owned enterprises.
• Online business loans: These flexible funding solutions provide capital for startups and established businesses to support a wide variety of business financing needs.

Final thoughts

SBA grants offer key support for nonprofits, educators, researchers, and community partners who help America’s small businesses succeed. These federal grant programs can be a powerful tool for driving innovation and expanding entrepreneurship throughout the country.

If your business doesn’t qualify for this type of funding, don’t be discouraged. There are many other funding paths to explore. You can research other business grants or financing options to help launch or expand your business. The right capital at the right time can make all the difference in growing your business sustainably both now and in the years to come.

Running a restaurant is a labor of love, but it’s also one of the most capital-intensive businesses there is.

From equipment and inventory, to leasing a storefront or expanding into a second location, having access to reliable funding can make or break your growth.

The Small Business Administration provides restaurant owners with affordable ways to secure the capital they need to launch, expand, or stabilize their operations.

In this guide, we’ll walk you through SBA loan options for restaurants, so you can find the ideal funding option to start, expand, or sustain your business.

SBA loans for restaurants

Two SBA loan programs stand out for restaurant owners:

SBA 7(a) loans because they offer flexible funding that can be used for working capital, equipment, inventory, renovations—or even buying an existing restaurant.

• Loan amount: Up to $5 million
• Terms: Up to 10 years for working capital and equipment; up to 25 years for real estate
• Interest: Variable or fixed, typically prime + 2–3%

SBA 504 loans because they’re built for big-ticket purchases like commercial real estate or large equipment upgrades, while offering long repayment terms and fixed rates.

• Loan amount: Up to $5.5 million (often more for energy-efficient projects)
• Terms: 10, 20, or 25 years
• Structure: 50% bank loan, 40% SBA-backed loan, 10% borrower contribution
• Interest: Fixed, often below market rates

Each program comes with its own advantages. The key is knowing which loan type fits your exact goals, and what you need to do to put them to work.

Pros and cons of SBA loans for restaurant owners

Why restaurant owners like SBA loans

1. Access to working capital:

Whether you're covering payroll, stocking up on inventory, or managing a seasonal lull, 7(a) loans offer flexible funding that you can put to work fast—with as much going towards working capital as you need.

2. Favorable interest rates and terms:

Because SBA loans are partially guaranteed by the government, lenders can offer lower rates and longer repayment terms than many traditional loans.

3. Support for real estate and equipment purchases:

Need to buy a building or invest in a new kitchen line? The SBA 504 loan is designed specifically for major fixed assets.

What to watch for

1. Slower approval processes:

Compared to online lenders or revenue-based financing, SBA loans can take longer to process—typically 30 to 90 days, depending on your documentation.

2. Heavy documentation:

You’ll need to provide business financials, a plan for the funds, and personal financials. It’ll never be one-click lending.

3. May require collateral or personal guarantees:

Especially for larger loans, lenders may want additional security. It’s something you should be prepared for. Sometimes that requires you to put up personal collateral along with your business.

Which SBA loan makes sense for your restaurant?

Not every restaurant needs a million-dollar renovation. Some just need new fryers. Others are scaling across state lines.

Whatever the case may be, the right SBA loan depends on your stage, your strategy, and how fast you need to move.

Consider the guidance below.

Working capital

Best fit: SBA 7(a)

If you need breathing room between payroll and vendor invoices, SBA 7(a) loans will be your best bet.

The SBA 7(a) loan is a fit here because it allows for unrestricted working capital use (within the flexible terms mentioned above of up to $5 million in funding and repayment terms up to 10 years).

It gives you time to stabilize cash flow without choking your margins.

Real estate purchase, Improvement, or Build

Best fit: SBA 504

If you're planning to buy your building, renovate a commercial space, or build a new location, the SBA 504 loan is what you’ll need.

The 504 loan offers long-term, fixed-rate financing (up to $5.5 million, with repayment terms of 10, 20, or 25 years).

It typically requires just 10% down from the borrower, which makes it easier to preserve working capital while investing in property you’ll own and control.

To get a 504 loan, you’ll need to occupy at least 51% of the property.

Equipment purchase

Best fit: SBA 7(a) or 504

From commercial ovens and refrigeration systems to POS terminals and kitchen hoods, restaurant equipment doesn’t come cheap.

Depending on where you fall on the matrix of time urgency to size of need, you can turn to either 7(a) loans or 504 loans.

If your needs are under $500K or tied to other expenses like working capital, the SBA 7(a) loan provides faster, more flexible funding.

For large-scale or long-life equipment, the SBA 504 offers better fixed rates and extended repayment terms—letting you finance major upgrades without depleting your short-term cash flow.

Inventory purchase

Best fit: SBA 7(a)

You never want to be strapped down at the liberty of your capital when prepping for holidays or seasonal peaks.

The SBA 7(a) loan is the best fit here because it allows for working capital use—including inventory—under the favorable terms we mentioned earlier (up to $5 million in funding and 10-year repayment timelines).

It’s a flexible, low-cost way to keep your shelves stocked and your kitchen moving no matter what.

Furniture or fixture upgrades

Best fit: SBA 7(a)

Need to upgrade your dining room, invest in new booths, or improve your outdoor seating? These improvements often don’t qualify as fixed assets.

The SBA 7(a) loan covers furniture, fixtures, and other soft costs that traditional loans (and 504 loans) may not, and with more favorable terms than other loans that do.

It gives you up to 10 years to repay and the freedom to bundle these upgrades with other expenses like marketing, hiring, or signage.

Expansion (adding a new location)

Best fit: SBA 7(a) or 504

Opening a second (third, fourth, etc.) location is a major milestone, but also a major expense.

The SBA 7(a) loan is ideal if you’re leasing a new space and need flexible capital for improvements, equipment, staffing, marketing, and other launch costs.

If you're buying property as part of the expansion, SBA 504 loans offer longer terms, lower down payments, and fixed-rate financing that protects your cash flow as you grow. As previously mentioned, 504 loans can be used specifically for purchasing real estate.

Buying a restaurant

Best fit: SBA 7(a)

Acquiring an existing restaurant can be a faster route to profitability, but it requires upfront capital and a lender that understands your business model well.

SBA 7(a) loans support full business acquisitions, including goodwill, equipment, and real estate (if applicable).

It’s one of the few programs designed specifically to help entrepreneurs buy an existing business without needing a massive injection of equity.

Using SBA loans to grow your restaurant

The restaurant industry isn’t easy—but the right financing can make life a lot easier for you, and a lot more pleasant for your diners.

SBA loans offer a rare combination of affordability, flexibility, and support. Whether you’re opening your doors or leveling up existing operations, knowing your options is the first step.

Need help finding the right SBA lender—or figuring out what you qualify for? Lendio can help. One application, multiple offers, no guesswork.

‍

The U.S. Small Business Administration (SBA) opens the door to a wide range of opportunities for women looking to launch, grow, or strengthen their businesses. 

Whether you're seeking startup capital, expansion funding, or access to government contracts, the SBA offers programs, partnerships, and loan options designed to help women move forward with confidence.

From funding programs like SBA 7(a) and microloans to specialized initiatives that support women-owned businesses in federal contracting, the SBA can serve as a powerful springboard for female entrepreneurs ready to start and scale their businesses.

Women-owned businesses are one of the fastest-growing and most dynamic forces in the U.S. economy. Here, we’ll take a look at how you can get access to capital, as well as how you can connect to a larger ecosystem of support, education, and long-term growth.

Types of SBA Loans for Women Entrepreneurs

Women business owners have access to the full suite of SBA loan programs. 

These loans are designed to support small businesses at various stages—whether you're starting out, expanding operations, or investing in long-term assets.

SBA 7(a) Loan Program

The SBA 7(a) loan is the most popular and versatile SBA program. It's commonly used for working capital, equipment purchases, inventory, hiring, refinancing existing debt, or even buying a business.

• Loan amounts: Up to $5 million
• Repayment terms: Up to 10 years for working capital, up to 25 years for real estate
• Interest rates: Competitive, partially backed by the SBA
• Best for: Established businesses looking for flexibility in how they use funds

SBA Microloan Program

Microloans are smaller loans often distributed by nonprofit community lenders, many of which focus specifically on underserved or underrepresented groups—including women.

• Loan amounts: Up to $50,000
• Average loan size: ~$13,000
• Best for: Startups, early-stage businesses, or entrepreneurs with limited credit history
• Additional perks: Lenders often provide business training or mentorship alongside financing

SBA 504 Loan Program

The 504 loan is ideal for businesses making large investments in fixed assets—like buying commercial property, renovating a facility, or purchasing major equipment.

• Loan amounts: Up to $5.5 million
• Terms: 10, 20, or 25 years
• Best for: Businesses planning long-term investments in infrastructure or expansion

To recap, here’s a comparison chart of each SBA loan feature. For more information on each loan feature, visit the guides linked below! 

Unique Loan and Grant Opportunities for Female Entrepreneurs

In addition to SBA loans, women entrepreneurs can benefit from alternative funding sources that cater specifically to women-owned or minority-owned businesses, including SBA grants.

CDFIs and Nonprofit Microlenders

Community Development Financial Institutions (CDFIs) are local lenders that prioritize underserved entrepreneurs. 

Many provide microloans, business coaching, and flexible underwriting that makes funding more accessible for women-owned businesses.

Examples include:

• Accion Opportunity Fund – A national lender supporting women, minority, and low-to-moderate-income entrepreneurs with loans and mentoring.
• Grameen America – Offers group-based microloans to women in low-income communities across major U.S. cities.
• LiftFund – Based in Texas and serving the Southeast, LiftFund provides microloans and SBA options for women and minority founders.
• Women’s Economic Ventures (WEV) – A California-based nonprofit offering up to $50,000 in small business loans and robust business training programs.

Women’s Business Centers (WBCs)

WBCs are SBA-funded resource hubs that provide free or low-cost business advising, training, and access to capital—all tailored to the needs of women entrepreneurs.

Notable centers include:

• Renaissance Entrepreneurship Center (CA) – Serving the Bay Area with workshops, mentorship, and financing support.
• Women’s Business Development Center (IL) – One of the largest WBCs, based in Chicago, offering certification help, loan readiness, and bilingual programming.
• The Catalyst Center (AL) – Supporting women- and minority-owned businesses in the Southeast through education, coaching, and capital access.

You can find your nearest Women’s Business Center using the SBA’s WBC locator tool.

Grants and Private Programs

Although harder to get, grants offer another option—especially for women-led ventures focused on innovation or impact. 

Grants don’t require repayment, but they’re often very competitive and come with specific eligibility requirements.

Well-known grant programs for women entrepreneurs include:

• Amber Grant: Offers $10,000 monthly grants to women-owned businesses across industries.
• Tory Burch Foundation Fellows Program: Provides a $5,000 grant and fellowship for early-stage, mission-driven women entrepreneurs.
• Cartier Women’s Initiative: Awards up to $100,000 to women-led, socially impactful businesses worldwide.

Many states and cities offer local or regional grants for women-owned businesses through economic development programs.

Your local Women’s Business Center (WBC) or Small Business Development Center (SBDC) can help you identify grant opportunities in your area.

SBA Programs & Certifications for Women-Owned Businesses

These programs don't provide direct loans—but they significantly expand the opportunities and advantages available to women-owned businesses through training, certification, and access to government contracts.

WOSB Federal Contracting Program

The Women-Owned Small Business (WOSB) Federal Contracting Program helps women gain access to government contracts in industries where women have been historically underrepresented.

• What it does: Sets aside specific federal contracts for certified WOSBs
• Eligibility: At least 51% women-owned and controlled; U.S. citizens
• Certification: Apply via wosb.certify.sba.gov

This program opens the door to millions in federal spending across sectors like construction, cybersecurity, staffing, and professional services.

8(a) Business Development Program

Designed for socially and economically disadvantaged entrepreneurs, the 8(a) program offers support through mentorship, government contracting assistance, and access to business development resources.

• Length: 9-year program
• Benefits: Sole-source government contracts, networking, and training
• Eligibility: Business must be at least 51% owned by an individual who is both socially and economically disadvantaged. Many women qualify.

SBA’s Ascent Learning Platform

Ascent is a free, SBA-backed digital learning platform built specifically for women entrepreneurs. It includes in-depth modules on:

• Financial strategy
• Scaling operations
• Marketing and branding
• Goal setting

Ideal for business owners who want self-paced training or additional prep before applying for funding.

National Women’s Business Council (NWBC)

The NWBC is an independent federal advisory council that conducts research and advocates for policy that supports women in business. 

While it doesn't offer funding directly, it's a valuable resource for understanding national trends and tapping into the broader network of women-led enterprises.

Navigating SBA Resources as a Woman Entrepreneur

Getting funding is about making strategic use of the resources available to you. So, as you move forward:

• Use support programs strategically – for example, combine a microloan with free advising from a WBC or pair a 7(a) loan with WOSB certification.
• Know your numbers – have a business plan, revenue projections, and clear credit profile before you apply.
• Leverage local resources – WBCs, SCORE mentors, and SBA district offices can help you prep for applications and certifications.
• Apply through multiple channels – Lendio allows you to compare SBA loan offers from multiple lenders with one application.

With the right strategy and support, the funding you need to grow your business is well within reach.