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An SBA 504 loan is a government-backed financing program designed to help small businesses purchase or improve owner-occupied commercial real estate and long-term equipment through a fixed-rate, long-term structure.

The program is administered by the U.S. Small Business Administration (SBA) and funded through a partnership between a traditional lender, a Certified Development Company (CDC), and the borrower. SBA 504 loans are specifically intended to support long-term business growth, job creation, and local economic development. They’re most ideal for small businesses in the growth stage, looking to expand operations long-term.

When to use an SBA 504 loan.

SBA 504 loans exist to make large, long-term investments more affordable for qualifying small businesses, particularly when purchasing real estate or high-cost equipment that will be used for many years.

In many cases, these loans are used when a small business:

• Wants predictable monthly payments through fixed interest rates
• Is planning a long-term expansion, not a short-term cash flow need
• Needs financing for assets that are central to operations, such as buildings or machinery

What SBA 504 loans can be used for.

SBA 504 loans are designed for specific, asset-based purposes. According to SBA 504 program guidelines, funds may be used for:

Real estate acquisition and development

• Purchasing owner-occupied commercial real estate
• Purchasing one or more existing buildings
• Construction new commercial buildings
• Expanding, converting, or renovating existing facilities
• Acquiring land as part of an eligible project (not for speculation or future resale)

Site improvements

• Grading and preparing land
• Streets, access roads, and parking lots
• Landscaping and drainage
• Certain community improvements (such as curbs or sidewalks), generally limited to a small portion of total project costs
• Energy-efficient or renewable energy improvements or equipment, when these improvements support the project facility, can be documented through an independent audit or report, and are not intended for energy resale.

Long-term equipment and fixed assets

• Purchasing and installing fixed equipment with a useful life of at least 10 years
• Equipment must generally be:
  
  • Permanently installed or affixed
  • Used at a specific, fixed location
• In some cases, short-term financing for equipment, furniture, or furnishings may be permitted only if:
  
  • The items are essential to the project
  • They represent a minor portion of the total project cost

Project-related soft costs (Limited)

SBA 504 loan proceeds may include certain professional or administrative costs when they are:

• Directly attributable to the eligible project
• Necessary to complete the transaction

Examples may include appraisals, surveys, and title- related costs, or zoning/ permitting expenses.

Interim or Bridge financing (Limited)

SBA 504 loans may be used to repay short-term bridge or interim financing (typically three years or less), when that financing was used to cover eligible project costs prior to permanent funding through the 504 program.

What SBA 504 loans cannot be used for.

Because SBA 504 loans are intended to support long-term capital investment, they come with strict limitations on how borrowers can use the proceeds. These restrictions are especially important in distinguishing SBA 504 loans from more flexible SBA loan programs.

Here’s what SBA 504 loans cannot be used for:

Working capital and operating expenses

• Day-to-day operating expenses
• Payroll, rent, utilities, or marketing costs
• Inventory, supplies, or raw materials
• Short-term cash flow needs

Debt refinancing (with some exceptions)

• Refinancing existing business debt not tied to eligible fixed assets
• Refinancing for the purpose of freeing up working capital
• Revolving or short-term debt structures

Investment or passive real estate

• Rental or investment properties
• Property not primarily occupied by the operating business
• Speculative real estate purchases

Intangible assets

• Business goodwill
• Software or cloud-based services
• Intellectual property

Land speculation or excess land

• Purchasing vacant land for future development
• Acquiring land in excess of current operational needs
• Land intended for resale or lease to third parties

Ownership interests (with some exceptions)

• Purchasing stock or ownership interests unless the transaction is structured to acquire eligible real estate or fixed assets
• Any portion of a transaction that is attributed to goodwill or excess value must be financed separately

Clarifying SBA 504 vs. SBA 7(a) uses of proceeds.

Many SBA rules around use of funds vary by program. SBA 504 loans do not allow working capital, inventory purchases, or operating expense financing, even though these uses are often permitted under SBA 7(a) loans.

This distinction matters because:

• SBA 504 loans are asset-focused and fixed-structure by design
• SBA 7(a) loans are more flexible and can support broader business needs

While you can use SBA 7(a) loans for several allowed uses for SBA 504 funds, the reverse isn’t usually true. Understanding this boundary helps ensure you pursue the right SBA program based on the purpose of financing, not just loan size or rate.

Learn more about SBA 504 loans vs. SBA 7(a) loans.

The SBA 504 program is structured to promote:

• Long-term business stability
• Job creation
• Owner-occupied property ownership
• Capital investments with lasting economic impact

Because of this mission, SBA 504 loans are intentionally not designed for short-term liquidity or operational flexibility. If your business is seeking flexible capital for day-to-day needs, you might want to consider alternative SBA programs or non-SBA financing options.

SBA 504 loan eligibility: High-level requirements.

SBA 504 loans are designed for established small businesses making long-term, asset-based investments. While exact approval criteria will also vary by lender and Certified Development Companies (CDCs), the SBA has several program-specific requirements that borrowers must meet.

This section outlines the eligibility considerations unique to SBA 504 loans, not the full SBA program eligibility criteria.

Program-specific eligibility criteria for SBA 504 loans.

Owner-occupancy requirement

SBA 504 loans are limited to owner-occupied properties.

• For existing buildings, the operating business must generally occupy at least 51% of the property.
• For new construction, required owner occupancy is typically 60%, with the expectation that owners will occupy 80% within 10 years.

This requirement ensures 504 financing supports active business operations rather than passive real estate investment.

Eligible project type

SBA 504 loans are reserved for long-term, fixed-asset projects, such as:

• Purchasing or constructing owner-occupied commercial real estate
• Expanding or renovating existing facilities
• Acquiring fixed equipment with a long useful life

Projects focused on working capital, short-term expenses, or speculative investment do not meet SBA program requirements.

Business stage and stability

SBA 504 loans are most commonly used by growth-stage businesses that:

• Have established operations
• Are planning long-term expansion
• Can support extended repayment terms

While newer businesses are not automatically excluded, additional equity or documentation may be required depending on project structure and lender review.

Financial review and repayment ability

Rather than relying on a single qualification metric, SBA 504 loans are typically evaluated using a holistic financial review, which commonly considers:

• Business financial performance and cash flow trends
• Personal and business credit history
• The long-term viability of the project being financed

Exact requirements vary by lender and CDC.

Eligibility rules that apply to all SBA loans.

In addition to the program-specific considerations above, SBA 504 borrowers must also meet the SBA’s general eligibility requirements, which address factors such ass:

• Business type and lawful operation
• Ownership and guarantor standards
• Use of loan proceeds
• Ability to obtain credit elsewhere on reasonable terms

Because these rules apply across multiple SBA programs, they are covered in detail in our comprehensive guide to SBA loan eligibility requirements.

When an SBA 504 loan may not be a fit.

An SBA 504 loan may not be appropriate if a business:

• Needs working capital or flexible funding
• Plans to purchase investment or rental property
• Does not meet owner-occupancy requirements
• Is seeking short-term or revolving credit

In these cases, other SBA loan programs or financing options may better align with the business’ needs.

SBA 504 economic development eligibility requirements (program-level).

In addition to standard SBA eligibility rules, all SBA 504 projects must meet at least one SBA-defined economic development objective. These requirements are specific to the 504 program and are evaluated at the project level, typically by the Certified Development Company (CDC), rather than solely by the borrower. 

This section explains how SBA 504 projects satisfy those program requirements at a high level.

Economic Development Objectives for SBA 504 projects.

Under SBA regulations, a 504 project must achieve at least one of the following economic development objectives to be eligible.

Job creation or job retention

Most SBA 504 loans qualify by demonstrating job creation or job retention.

• Projects must generally support the creation or retention of at least one job opportunity per $90,000 of SBA-backed debenture.
• For small manufacturers and energy-related projects, the threshold is higher.
• Job retention may be used when a CDC can reasonably demonstrate that jobs would be lost if the project were not completed

Job opportunities do not need to be located directly at the project facility, however the majority of jobs must typically benefit the local community where the project is located.

Alternative Economic Development or Public Policy goals

If a project does not meet job creation or retention benchmarks, it may still qualify by advancing other SBA-approved public policy or community development goals. 

Examples include projects that support:

• Community development initiatives
• Rural development
• Business district revitalization
• Expansion in underserved or special geographic areas
• Certain energy efficiency or sustainability objectives

Energy Public Policy projects (special category)

Some SBA 504 projects qualify under energy-related public policy goals, which follow additional SBA guidance.

At a high level, eligible energy public policy projects may include those that:

• Reduce existing energy consumption by at least 10%
• Generate more than 15% of the energy used at the project facility from renewable resources
• Incorporate sustainable design elements that reduce environmental impact

These projects must be supported by third-party documentation, such as an energy audit or engineering report, verifying projected energy usage and savings.

Because these requirements are technical and project-specific, they are typically evaluated and documented by the CDC during the application process.

How Economic Development requirements affect borrowers.

For most borrowers, economic development eligibility is handled primarily by the CDC, not the business owner, but it’s helpful to know what the CDC will be looking for.

Borrowers will generally be responsible for:

• Providing project details
• Sharing employment estimates or operational impact
• Supporting documentation requested during underwriting

The CDC will use this information to ensure the project aligns with SBA economic development objectives and complies with program requirements.

How SBA 504 loans work (Step-by-Step).

SBA 504 loans follow a structured process because they involve multiple parties. These include a traditional lender, a Certified Development Company (CDC), and the SBA. Exact timelines and requirements vary by lender and project type, but the process generally looks like this.

Step 1: Confirm your project is eligible.

Start by confirming your planned purchase or improvement fits SBA 504 guidelines. This is most commonly owner-occupied commercial real estate or long-term fixed equipment. The SBA 504 program is not intended for working capital, inventory, or investment property.

Step 2: Estimate your total project cost and financing structure.

Next, outline your full project budget (purchase price, construction costs, renovations, equipment, eligible soft costs). SBA 504 projects are financed through a shared structure between the lender and CDC, plus a borrower contribution.

Step 3: Choose a Certified Development Company (CDC).

SBA 504 loans are typically originated through a participating bank or lender and a CDC, which supports the SBA-backed portion of the financing. The CDC also helps document project eligibility and economic development objectives. You can find a CDC in your state via the SBA’s list of certified development companies, and they will typically discuss your project with you and help you find a participating bank or lender. You can also use the SBA’s Lender Match tool to find SBA-approved lenders participating in the 504 program.

Here is a guide to typical 504 financing structures based on business type or project purpose.

Step 4: Prepare your application package and documentation.

You’ll typically provide business and project documentation used for underwriting and SBA program review, such as:

• Business financial statements and tax returns
• A current debt schedule
• Information about owners and guarantors
• Project details (property, equipment specs, construction plans, budgets)

Exact documentation requirements will vary by lender, CDC, and transaction complexity. You can visit the SBA's 504 Authorization File Library to find the documents you will need for your loan package.

Step 5: Underwriting and eligibility review.

The lender and CDC will evaluate your application package to confirm:

• The business and project meet SBA 504 requirements
• Repayment ability and overall creditworthiness
• Project structure and collateral considerations
• Required program elements (such as owner occupancy and economic development objectives)

Step 6: SBA authorization and loan approval.

After underwriting, the CDC submits the required documentation for SBA authorization. Once approved, the financing moves towards closing.

Step 7: Close the loan and disburse funds.

At closing, the project is funded according to the approved structure. For construction or renovation projects, funds may be disbursed in phases based on project milestones.

Step 8: Begin repayment and meet ongoing reporting requirements.

After disbursement, repayment begins under the agreed term and structure. For SBA 504 loans, CDCs may also track program-related outcomes (such as job impacts) as part of SBA reporting requirements.

Pros and Cons of SBA 504 Loans.

SBA 504 loans offer meaningful advantages for certain long-term business projects, but they also come with limitations. Understanding both sides can help businesses determine whether this program aligns with their financing goals.

Pros of SBA 504 loans

• Designed for long-term asset purchases - 504 loans are specifically structured to support major investments, making them ideal for expansion projects with lasting value.
• Fixed interest rates - The SBA-backed portion of the loan is commonly offered at a fixed rate, which helps provide predictable monthly payments over the life of the loan.
• Long repayment terms - Depending on the asset being financed, SBA 504 loans feature extended repayment periods, commonly from 10-25 years, which can help spread costs over time for large purchases.
• Lower down payment requirements- In many cases, 504 loans require less upfront equity compared to traditional commercial real estate financing, although specific contributions will vary by project and borrower.
• Supports economic development goals - The program is designed to encourage job creation, community growth, and long-term business investment.

Cons of SBA 504 loans

• Limited use of proceeds- SBA 504 loans cannot be used for working capital, inventory, or most short-term business expenses.
• More complex loan structure - Because SBA 504 loans involve multiple parties, including a traditional lender and a CDC, the process can be more involved than single-lender loans.
• Longer approval timelines - Layered review and authorization processes often result in longer timeframes compared to non-SBA or conventional financing options.
• Owner-occupancy requirements - Only owner-occupied properties qualify, which excludes investment or rental real estate projects.
• Not ideal for early-stage or short-term needs - Businesses seeking quick access to capital or flexible funding may need to explore other loan programs.

How to decide whether an SBA 504 loan fits your project.

• If your business is purchasing or constructing owner-occupied commercial real estate, then an SBA 504 loan is commonly used to finance long-term property investments tied directly to business operations.
• If your business is expanding, converting, or renovating an existing facility it actively operates from, then SBA 504 financing may be relevant for the fixed-asset portion of that project.
• If your business is purchasing long-term, fixed equipment that will be installed at a specific location and used over many years, then an SBA 504 loan may help finance those assets.
• If your project involves energy-efficiency upgrades or on-site renewable energy improvements that can be documented through an energy audit or engineering report, then the project may qualify under SBA 504 energy public policy goals.
• If your business is planning a large, long-term investment and prefers predictable payments through fixed interest rates, then SBA 504 financing may align with that goal.
• If your business needs working capital, inventory funding, or short-term operational support, then an SBA 504 loan is typically not a fit, since the program is designed for fixed assets rather than flexible business expenses.
• If your project involves investment or rental property that will not be primarily occupied by your operating business, then SBA 504 financing is generally not appropriate.

Bottom line: is an SBA 504 loan right for your business?

SBA 504 loans are a specialized financing program designed to support long-term, fixed-asset investments such as owner-occupied commercial real estate and permanent equipment. By combining a traditional lender, a Certified Development Company (CDC), and SBA-backed financing, the program helps eligible small businesses fund large projects tied to expansion, job creation, and economic development.

Because SBA 504 loans are purpose-built for asset-based growth, they are best evaluated based on project type, business stage, and long-term operational goals, rather than short-term funding needs.

Key Takeaways.

• SBA 504 loans are designed for fixed assets, not working capital. They are commonly used for owner-occupied real estate, construction, renovations, and long-term equipment.
  
• Eligibility is project-driven, meaning both the business and the proposed project must meet SBA program guidelines, including owner-occupancy and economic development objectives.
  
• The loan structure is unique, involving a lender, a CDC, and SBA-backed financing, which can provide long repayment terms and predictable payments for qualifying projects.
  
• SBA 504 loans differ from SBA 7(a) loans, particularly in use of proceeds, flexibility, and structure. Choosing the right program depends on how the funds will be used.
  
• SBA 504 financing is typically best suited for growth-stage businesses planning long-term investments, rather than early-stage companies or businesses seeking short-term or flexible capital.

Businesses considering SBA financing often compare multiple loan programs before moving forward. Understanding how each option works—and when it applies—can help ensure the chosen financing aligns with long-term business goals.

Related resources.

Learn more about SBA loans:

• SBA Loan Eligibility Requirements
  
• SBA Loan Interest Rates Explained
  
• SBA Guarantee Fees Guide

Compare SBA financing options:

• SBA 7(a) vs SBA 504 Loans

SBA loans are a flexible, affordable funding option for small businesses, but they often take weeks or months to process. This is largely due to an extensive application process, strict requirements, and a high demand for these loans.

While you’re waiting for more permanent funding to come through, you might want to consider a business bridge loan. These are a fast, temporary solution that keeps business plans moving during the wait.

What is a bridge loan?

A business bridge loan is a short-term funding solution designed to help fill the gap while you wait for long-term, reliable financing to arrive. These loans provide more immediate cash flow for urgent expenses, like rent, payroll, or commercial real estate.

The trade-off for quick funding is that they typically come with high interest rates and shorter repayment terms—often no more than a year. This makes them better as a temporary solution, as opposed to SBA loans, which usually have more favorable terms and rates.

Taking out a bridge loan doesn’t necessarily disqualify you from SBA funding. However, government-backed loan programs often look at your overall financial situation when deciding whether to approve your application. This includes your debt-to-income (DTI) and debt-service coverage ratio (DSCR)—which indicates your ability to repay.

Before applying for a short-term business financing solution, make sure it won’t prevent you from securing a more permanent financing solution like an SBA 7(a) or 504 loan.

Why businesses use bridge financing.

Businesses use bridge loans—sometimes called gap financing—to handle short-term or pressing cash flow needs. They’re a stopgap until a long-term solution, like an SBA loan, comes through.

Bridge loans can help by:

• Covering payroll or operating expenses while waiting for SBA loan approval
• Purchasing inventory or equipment tied to time-sensitive opportunities
• Locking in contracts before SBA funds are ready
• Purchasing or constructing commercial property
• Providing working capital in the midst of a major deal or sale (like an acquisition)

How a bridge loan helps while SBA funds are pending.

SBA loans exist to help small businesses get the funding they need to launch, grow, and thrive. Over the past handful of years, the SBA has provided loans (and grants) to 13 million small businesses.

But SBA loans can take time to process—sometimes around 90 days—and you might not be able to wait. While your application is pending, a business bridge loan can help with:

• Fast approvals and quick funding (often same-day or next-day funding)
• Flexible repayment structures (depending on lender)
• Ability to preserve momentum instead of pausing commercial operations
• Funds to secure an immediate opportunity

Key differences between bridge loans and SBA loans.

Business bridge loans and SBA loans are both designed to help fund your business, but here's how they differ:

• Unlike SBA loans, bridge loans are a short-term business financing solution
• Bridge loans are usually more expensive, with higher interest rates and other lender fees
• SBA loan approval can take weeks or months, whereas bridge loans may be funded within a week or less
• Bridge loans often have short repayment timelines of about a year (up to three years when used for real estate) vs. longer SBA terms (10 to 25 years)
• Bridge loans don’t come with a federal guarantee, so lenders assess risk differently (and may charge more)

Know that both bridge loans and SBA loans can be used for an array of business needs, including:

• Short-term working capital (and long-term for SBA loans)
• Financing equipment, inventory, machinery, etc.
• Purchasing property

Bridge loans may be either secured or unsecured. Some lenders require collateral—like property in the case of real estate acquisitions—in exchange for funds. SBA loan programs vary, but loans above $50,000 may require collateral or a personal guaranty.

What lenders look for in bridge loan applicants.

With any form of business financing, lenders want to know you can repay the amount borrowed on schedule. Requirements vary, but here’s what lenders typically look for in an applicant:

• Strong cash flow and the ability to repay quickly
• Clear evidence that an SBA loan is already in progress (especially if you’re planning on using the SBA loan to refinance current business debts)
• Clear financial documentation and up-to-date bank statements
• Good or excellent credit (aim for 740+)
• DSCR of at least 1.25 or DTI below 50%
• Sufficient collateral (like real estate or other assets)

If you’re using the bridge loan for real estate, lenders will also generally review the loan-to-value ratio (LTV). Most lenders only let you borrow up to 80% of the property’s value.

When a bridge loan makes sense.

A bridge loan might make sense for your business if:

• You have a time-sensitive opportunity (like a great real estate deal)
• You need to stabilize cash flow during the waiting period
• You’re confident the SBA loan approval is on track
• You’re sure of your ability to repay the loan in a short period (or else have the means to refinance it)
• The benefits of the loan outweigh the costs
• You have the required collateral

Note: If your business needs help recovering from a declared disaster, an SBA disaster loan may help.

Bridge loans: A possible short-term solution.

Bridge loans help small business owners move forward instead of waiting on lengthy SBA timelines. But they aren’t without risk. As a form of short-term business financing, they generally must be repaid within a few months or years. They also tend to come with higher interest rates and other fees that SBA loans don’t have.

Before choosing a bridge loan, weigh the benefits—like more immediate funds—against the costs. It helps to have a clear plan and exit strategy so you can make the most out of the loan while safeguarding yourself (and your business) against future complications.

Thinking about your business financing options? Check out Lendio’s marketplace today.

Restaurants operate on thin margins, requiring many sales to generate healthy profits. They also have higher startup costs than some other industries, and it’s not uncommon to need funds both early on in the business, as well as later on.

While SBA funding is a common choice, it’s not the only game in town. In fact, some restaurants need the flexibility, speed, and approval odds that are available through other options. Learn about the most common restaurant funding options available, as well as how to know which is right for you.

Where SBA loans fit into restaurant financing.

The Small Business Administration (SBA) is often the first option restaurant owners think of when looking for long-term financing. The SBA 7(a) and 504 loans can offer up to $5 million and have lower rates than other types of funding. Because SBA funds can be used for equipment costs and payroll, they may seem like a natural fit for the challenges restaurants face in any economy.

However, getting approved for an SBA loan can be a long process, with slower approval times and rigorous documentation requirements. The large collateral terms may make them out of reach for new or small eateries.

Even if the SBA loan is the ideal pick, the timeline may force restaurants to look elsewhere to cover them while the loan is being approved. If a fryer breaks, for example, it’s not reasonable to replace it in 30 to 60 days, which is how long a traditional SBA loan can take from application to loan disbursement.  

Restaurants must keep their doors open and welcome new customers, so they’ll need the money faster than this. That’s why it’s good to know the other loan types available to owners with urgent cash needs or who want to take advantage of a quick-turn growth opportunity.

Traditional bank loans.

Starting a restaurant is a big undertaking, but if the owner already has a relationship with a bank, they may want to start there. Restaurants aren’t limited to just those banks they know, however, and can search around to find the right lender to meet their needs.

Advantages of traditional bank funding include competitive interest rates and large loan limits, which can help companies expand or refinance costly debt. Banks tend to work best with established restaurants, meaning it may be difficult for new or small businesses (like food trucks) to get the funding they need. Like SBA loans, the longer timelines could shut out restaurants that need quick cash to repair equipment or boost supply inventory during busy seasons.

Equipment financing.

In the case of a broken fryer or outdated appliances, restaurant owners may find equipment financing a suitable solution. These loans are made specifically for purchases of physical goods like ovens, refrigerators, POS systems, or other specialty restaurant equipment.

Anything bought with the funds becomes collateral for the loan money, so the lender gets some assurance of repayment (or they can take back the equipment). This creates less risk for the financing company, making them more willing to work with new or small restaurants, as well as those with weaker credit histories.

Approval can be very quick and allows restaurant owners to update their locations as needed without delay.

Business lines of credit.

A business line of credit is very flexible and gives business owners a set amount of money they can borrow from again and again. Whether it’s for payroll, inventory, marketing, or other needs, the money remains available as long as the account stays open, and the lender only charges interest on what’s used. It’s similar to a credit card in that way, but it can be taken out as cash.

Lines of credit may be appropriate for restaurants that need cash for seasonal swings or don’t need the large one-time lump sums of a traditional bank loan.

Short-term loans.

When a restaurant only needs cash for a short time, and long loan processes won’t do, a short-term loan can fill the gap. These loans are designed to be paid back quickly, within months, and have a higher interest rate than typical funding programs. They can be used for repairs, staffing shortages, when cash flow gaps appear, and when there’s no time to wait for more comprehensive lender underwriting.

Revenue-based financing.

Revenue-based financing, such as merchant cash advances give restaurants access to funds that are paid back incrementally through credit card transactions. They are best suited for restaurants with high credit card volume, as the repayments happen based on daily or weekly sales.

These loans work aren’t different than other cash advance options, in that they are easier to qualify for but charge higher interest rates.

Invoice financing for catering or B2B accounts.

Limited to catering services and those with large corporate accounts, invoice financing converts part of the value of unpaid invoices into a cash loan. The lender then collects on the invoice, taking some or all of the accounts receivable balance.

Costs for these services vary, and lenders may buy the invoices outright or let you continue to collect yourself (taking a portion of what you receive). The financing may appeal to businesses with uneven cash flow situations or that need more money to expand.

How to choose the right option.

All these funding choices have just one thing in common: they can help food businesses survive in difficult times or tap into potential growth opportunities. Beyond that, they are very different and require you to ask questions to know what’s right for you.

Ask these questions before you begin:

• What do I need money for?
• How much do I need to borrow?
• How quickly do I need it?
• How do I repay the money?
• Will it impact my daily operations?
• What does the financing cost in charges, fees, or interest accrued?
• Can we afford monthly payments?

Since there’s no one-size-fits-all solution, consider bundling multiple funding sources or relying on a different loan type at different parts of your business journey. Lendio can help you cut through the noise and find the lenders best matched to your needs, credit score, and timeline.

Every nonprofit knows their mission matters, but without steady funding, making an impact can feel like a constant struggle. Loyal supporters and fundraising events play an important role, but the right nonprofit financing options can often make a huge difference.

Many nonprofit organizations assume they won’t qualify for a Small Business Administration (SBA) loan, and while this is true in many cases, there are some exceptions. The key lies in which specific SBA loan program you’re applying to and the organization’s activities. Here’s what you need to know.

How the SBA views nonprofits.

The SBA was created to stimulate economic growth by supporting for-profit small businesses. While the organization isn’t opposed to nonprofits, many fall outside its primary lending scope.

However, when a nonprofit’s operations overlap with commercial activities, the doors to SBA funding may begin to open. For example, programs that support job creation, community development, or revenue-generating services may meet SBA criteria.

Scenarios where a nonprofit may qualify for an SBA loan.

There are three common cases where an SBA loan for nonprofits may be possible. If your organization fits into one of these categories, you may benefit from exploring your options in greater detail.

Community Development Corporations (CDC)

The SBA 504 loan program helps finance major fixed assets, such as real estate or equipment. Nonprofits working through Certified Development Companies (CDCs) may qualify for funding if their projects support economic development goals, such as creating jobs or revitalizing underserved areas.

For example, a nonprofit that plans to purchase a building that will house workforce training programs or community services tied to job placement may meet the criteria.

Fee-based social enterprise.

A nonprofit that operates a revenue-generating arm, such as a café, thrift store, or consulting firm, may qualify as a small business affiliate if it is structured as a separate taxable entity. This earned income model may help demonstrate business viability, which could potentially also strengthen the funding application.

Real estate tied to economic development.

Nonprofits that own or plan to acquire real estate for economic development purposes may qualify. Some examples include affordable housing development, business incubators, or community facilities that create jobs or serve low-income populations.

Qualification challenges for nonprofits.

Unless they fall into one of the scenarios above, most charitable, religious, and community organizations will generally not meet SBA lending standards. This is particularly true for SBA 7(a) loans, which provide small businesses with funding for working capital and equipment financing. Since nonprofits aren’t profit-seeking by definition, it’s common for them to be automatically precluded from qualification.  

For nonprofits with a revenue-generating function, qualification for SBA financing may be possible, but only if you can also demonstrate business viability and an ability to repay the loan.

Many nonprofits are better served by exploring other funding solutions, applying for grants, or seeking philanthropic funding to support their mission and programs.

How to strengthen your nonprofit application.

If your nonprofit falls into a qualifying category, the right preparation may help improve your chances of approval. Keep in mind that you’ll need to present your organization in a way that makes it look and feel like a business. Start with these tips.

Provide strong financial statements.

SBA lenders need to see organized financial records. This makes clean, accurate bookkeeping a top priority. If your books aren’t current and up to standard, fix this before you apply.

Demonstrate stable revenue.

Make sure you can show that you have a track record of consistent income. This may include government contracts, grants, membership fees, and income earned from programs. The more predictable your revenue, the more comfortable lenders may feel about approving the loan.

Prepare a clear impact plan.

Many SBA loans require applicants to present a business plan. When submitting an SBA loan nonprofit application, be prepared to show how the funding will strengthen your programs or expand community impact. Since SBA-backed loans must be tied to economic benefit, focus on measurable outcomes such as the number of new jobs created, people served, or facilities improved.

Gather your documentation.

Applying for an SBA loan requires more documentation than many grant applications. As you prepare your application, gather the following items:

• IRS designation letter: Proof of your 501(c)(3) status and tax-exempt classification.
• Board resolutions: Official statement from the board providing authorization to pursue financing.
• Financial statements: Year-to-date financials, plus two to three years of financial statements.
• Cash flow projections: Projected cash flow for the term of the loan, demonstrating a clear ability to make required payments.
• Organizational budget and funding sources: A breakdown of where the organization’s money comes from and how it’s spent.
• Program descriptions tied to economic outcomes: Detailed explanations of how your programs create jobs, support businesses, or drive community development.

Missing documentation is a common reason for denial, so take the time to double-check your file before submitting.

Explore your nonprofit financing options.

Nonprofits face unique financing challenges, and traditional banks aren’t always the right solution. However, if your organization runs programs that align with SBA goals, you may have more options than you think. If you’re unsure whether you may qualify, it may make sense to explore both SBA programs and other nonprofit financing options.

Business loan credit score requirements vary based on many factors. Different lenders (even non-traditional lenders) might look at the same  business loan requirements and weigh their importance differently. 

It’s also true that your relationship to your lender may open more opportunities for you, even with a credit score that’s less than perfect. If you have a long relationship with your bank or credit union, or use a platform or service that provides financing to customers, these relationships can open the door to business loans not available to the general public.

Before you go into the bank, you’ll want to know where you stand with these four very important metrics:

1. Your credit score—both your personal and business score
2. Years in business—most banks want to see two or more
3. Your annual revenues—more is better than less
4. Your collateral—there are different types of collateral, depending upon the type of loan you’re looking for

Credit score is number one for a myriad of reasons. It’s the most important metric and is the cause of most rejections. Although there is hope for business owners with less-than-stellar credit, those options come with a cost. Minimum credit score requirements vary by loan type and lender, but you'll have the most options available to you with a minimum credit score of 650.

Minimum credit score by loan type.

Here are the minimum personal credit score requirements for each type of business financing to get an idea of the options available to you.

Minimum credit score by lender type.

Here are the minimum personal credit score requirements for each type of business financing to get an idea of the options available to you.

Why does credit score matter?

Credit scores play an influential role in securing a business loan. This three-digit number quantifies your fiscal responsibility and reliability, providing lenders with a quick, objective assessment of your credit risk. 

In essence, a good credit score signals to lenders that you've consistently fulfilled your financial obligations to other lenders on time and are likely to repay their loans promptly. Consequently, businesses with higher credit scores are often offered more favorable loan terms, including lower interest rates and longer repayment periods. 

Conversely, a bad credit score could denote a higher risk proposition for the lender, potentially leading to a rejected application or a higher interest rate and stringent loan conditions.

About personal credit scores.

One of the most commonly used personal credit scores is the FICO Score, developed by the Fair Isaac Corporation. The FICO Score is calculated based on five main components, each weighted differently:

1. Payment history (35%) - This represents whether you've paid past credit accounts on time.
2. Amounts owed (30%) - This includes the total amount of credit and loans you're utilizing compared to your total credit limit, also known as your credit utilization ratio.
3. Length of credit history (15%) - This considers the age of your oldest credit account, the age of your newest credit account, and an average of all your accounts.
4. New credit (10%) - This comprises the number of new accounts you've opened or applied for recently, including credit inquiries.
5. Credit mix (10%) - This takes into account the diversity of your credit portfolio, including credit cards, retail accounts, installment loans, mortgage loans, and others.

FICO credit scores range from 300 to 850. Here's a general classification of FICO scores:

Bad credit: 300-579

Within a credit score of 300-579, you'll struggle to qualify for business financing. Once your score gets above 500, you may qualify for a revenue-based financing, equipment financing, or invoice factoring depending on the lender and whether you meet other requirements.

Fair credit: 580-669

With a fair credit score of 580-669, you'll meet most minimum credit score requirements for revenue-based financing, invoice factoring, or equipment financing. If your score is 600 or above, you're more likely to qualify for a line of credit or term loan.

Good credit: 670-739

Within this credit range, you'll likely meet all lender's minimum credit requirements for term, SBA, commercial real estate, and bank loans.

Very good credit: 740-799

Exceptional credit: 800-850

About business credit scores.

A business credit score, much like a personal credit score, is a numerical representation of a business' creditworthiness. It provides a quick, objective snapshot of the financial health of a business and its ability to repay debts on time. The score is generated by credit bureaus such as Dun & Bradstreet, Equifax, and Experian, and ranges typically from 0 to 100.

The calculation of a business credit score considers several factors, including:

1. Payment history - As with personal credit, timely repayment of debts is crucial. Regular, on-time payments to creditors enhance your business credit score.
2. Credit utilization ratio - This measures how much of your available credit your business is currently using. A lower ratio (meaning you're using less of your available credit) can positively impact your score.
3. Length of credit history - Longer credit histories can benefit your business credit score, as they provide more data about your business' long-term financial behavior.
4. Public records - Bankruptcies, liens, and judgments can negatively affect your business credit score.
5. Company size and industry risk - Larger companies and those in industries considered less risky may have higher credit scores.

Lenders will typically review both your personal credit score and business credit score when qualifying you for a business loan.

If your credit score isn’t where you’d like it to be, there are several steps you can take to improve your score both quickly and over time. 7 tips to boost your credit score. 

Depending on how bad your score looks today, you might need to invest some time—but there is hope. Just remember, your credit score is the first thing any lender will look at before they offer you a small business loan. 

Ready to compare business loan options? Apply for a small business loan.

A business line of credit can be one of the most flexible financing solutions available for small business owners. Business lines of credit give you the freedom to draw funds as needed, repay what you use, and borrow again when your company needs access to more cash. Yet before you apply for this useful funding tool, it’s crucial to understand that not all lines of credit work the same way. 

Most lenders offer two primary types of business credit lines: secured and unsecured. The key difference between these financing options has to do with a term known as collateral. When you open a secured line of credit, the lender requires you to provide business (or sometimes personal) assets to back the loan— these assets are collateral. With an unsecured credit line, the money you borrow depends on overall creditworthiness, including your business and personal credit scores, instead. 

Both options have benefits and tradeoffs. Knowing how they work and which solution aligns best with your company’s financial situation can help you make a smart funding choice. Use the guide below to learn what sets secured and unsecured business lines of credit apart, the pros and cons of both types of credit lines, and how to decide which option is the best fit for your funding goals.

Comparing secured and unsecured business lines of credit.

A business line of credit works like a reusable financial safety net—similar to a business credit card in several ways. When you open a new business credit line, the lender sets a credit limit for the account and you decide how and when to draw funds. You also only pay interest on the money you borrow, not the total available credit limit. This structure can make credit lines a great fit for managing cash flow, covering payroll, or handling unexpected expenses. 

Learn more about how a business line of credit works.

Business lines of credit fall into one of two categories: secured or unsecured. The difference between these options comes down to collateral, and that important detail shapes your approval odds, borrowing limits, and cost of financing.

What is a secured business line of credit? 

A secured business line of credit lets you borrow against assets your company already owns or, in some cases, against personal assets. When you open the credit line, you pledge collateral such as real estate, equipment, vehicles, or accounts receivable. The lender evaluates the assets and sets your credit limit based on their value, your financial strength, and other details. 

Collateral provides the lender protection and lowers its risk in the event of a default. If you stop making payments, the lender can take or sell the pledged assets to recover some (or all) of the outstanding balance on your debt. Because this structure reduces the lender’s risk, secured credit lines often feature lower interest rates, higher credit limits, and more flexible repayment terms. But the approval process may take longer due to the need for asset valuation.

Secured credit lines can be helpful for newer companies and startups. This type of financing can also be useful if you’re working to build business credit and for business owners who want to borrow larger amounts at lower rates. For example, a trucking company might use its commercial fleet as collateral to secure a credit line with a higher limit and lower borrowing costs. 

In general, secured credit lines work best for business owners who: 

• Own high-value assets or property.
• Place a priority on lower interest rates, higher credit limits, or longer repayment terms. 
• Need to build or strengthen business credit.

What is an unsecured business line of credit?

An unsecured business line of credit gives you access to financing without pledging collateral. Instead of reviewing assets, lenders evaluate your creditworthiness (including personal and business credit scores, annual revenue, cash flow trends, and repayment history).

Because lenders take on more risk, some unsecured credit lines may feature smaller credit limits, higher interest rates, and shorter repayment terms. The qualification requirements for an unsecured credit line may also be stricter. And it’s common for lenders to require a personal guarantee, which connects repayment to your personal credit. However, approval and funding speeds tend to be faster with this type of financing.

Unsecured lines of credit may appeal to established businesses that want quick access to cash without risking assets like equipment or property. For example, a marketing agency with strong monthly revenue and an excellent credit score could use an unsecured credit line to gain quick access to working capital for managing payroll between client payments.

An unsecured business line of credit may work well for businesses who: 

• Have excellent credit and stable revenue. 
• Need smaller credit limits and short-term funding solutions to stabilize cash flow. 
• Prefer to avoid pledging business or personal assets.

Secured vs. unsecured lines of credit.

Below is a side-by-side comparison of secured and unsecured business lines of credit so you can compare the key features of these popular financing options at a glance.

Weighing the benefits and risks: What each option means for your business.

Every financing decision comes with tradeoffs. So, it’s important to carefully consider the pros and cons of each option (secured and unsecured credit lines) before you choose the path that’s right for your business. Both financing options can support cash flow, operations, and growth. But the selection you make will influence your costs and risk exposure.

Interest rates and fees

Providing collateral reduces lender risk. So, lenders typically offer competitive, lower rates on secured credit. Unsecured credit, by contrast, tends to cost more because lenders assume additional risk. In fact, some lenders may be more likely to add on annual or maintenance fees for unsecured credit lines or other unsecured business loans.

Learn more about average interest rates for business lines of credit.

Asset impact and liability 

A secured credit line requires collateral, which puts your business or personal assets on the line if your company doesn’t repay its debt. If you default, the lender can take the pledged collateral. An unsecured credit line protects your assets, but often features a personal guarantee which can have a negative impact on your personal credit if the business fails to repay. This type of past due debt could harm your credit for many years into the future (possibly up to seven years).

Pros and cons

Secured line of credit

• Pros: Lower interest rates, higher credit limits, easier approval criteria
• Cons: Collateral risk, slower funding speed

Unsecured line of credit

• Pros: No collateral, faster funding, protects assets‍
• Cons: Higher interest rates, smaller credit limits, stricter qualification criteria, personal guarantee

Decision factors: Matching a business line of credit to your situation.

As you compare secured and unsecured business lines of credit, numerous factors may determine the best borrowing solution for your business. Your business goals, financial history, and available resources all have a role to play in the decision making process. 

If you want access to a larger credit line or if you wish to reduce borrowing costs, a secured credit line may serve you better. Meanwhile, for businesses that value fast funding speed and prefer not to risk assets (e.g., equipment, vehicles, property, etc.), an unsecured business line of credit might make the most sense. 

Of course, it’s also important to consider eligibility requirements and the type of credit line you’re more likely to qualify for before you apply. Every business credit line application is different, but lenders commonly evaluate factors such as the following.

• Credit scores: Many lenders require borrowers to have a minimum 600 FICO® Score to be eligible for a business credit line. Unsecured credit lines may feature stricter requirements, especially for larger credit limits. 
• Annual revenue: Minimum revenue requirements are often $100,000 per year, and in some cases as high as $50,000 per month depending on the lender and type of small business loan or line of credit.
• Business age: Some lenders prefer to work with applicants that have been in business for at least one to two years. Yet there are lenders willing to approve borrowers with six months or more of operational history.
• Available collateral: Traditional lenders may prefer for applicants to pledge assets to back their credit lines or loans. Online lenders, however, are often more flexible when it comes to this requirement and may offer more unsecured financing options. 

When to use secured vs. unsecured business lines of credit.

Both types of business credit lines have the ability to be helpful when your company needs a flexible financing solution. See the chart below for a look at several different scenarios and whether a secured or unsecured line of credit makes the most sense.

Remember, strong credit can lower your business line of credit interest rates. But so can offering valuable collateral with a secured credit line. In the end, deciding whether an unsecured or secured credit line is best for your company comes down to identifying priorities and the type of financing you’re more likely to qualify for when you apply.

Bottom line.

A business line of credit can help you manage cash flow, cover expenses, and invest in the growth of your company. But you’ll need to choose which type of credit line makes the most sense for your business. Secured credit lines often reward you with lower interest rates and higher credit limits when you pledge collateral. Unsecured credit lines tend to offer speed and flexibility when you already have strong credit and want to avoid putting assets at risk.

Both options can support your financial goals when you use them responsibly. So, take the time to review your financials, consider your risk tolerance, and compare interest rates and fees before you choose a credit line that works for you. 

From there, explore Lendio’s business line of credit calculator to estimate how much you may be able to afford to borrow and learn how to qualify. When you’re ready, you can compare the best small business lines of credit to review rates, borrowing requirements, and more.

SBA loan rates are tied to a base rate that changes with the market. Lenders can charge borrowers a rate that falls somewhere between the base rate and the maximum set by the government.

Current SBA rate maximums range from 10.00% to 15.00%.

Explore the most popular SBA loan programs and their rate structures to find out which one is the best fit for your company. 

Before we dive in, get familiar with the basics in our SBA loans overview- a great place to start if you're exploring funding options.

How SBA loan interest rates work.

SBA loan rates are regulated by the U.S. Small Business Administration. Private lenders negotiate their own rates with each individual borrower. But the offered loan rate cannot exceed the maximum set by the SBA for each loan program. 

The maximum is tied to a base rate, which can be one of the following:

• Prime rate: The most commonly used rate, currently at 7.00%
• Optional peg rate: Updated quarterly by the SBA based on market conditions, currently 4.75%

The borrower is then charged a markup (a percentage over that base rate). That varies based on:

• Loan amount
• Type of SBA loan
• Loan maturity date

Current SBA loan rates (December 2025).

Here is how each SBA interest rate breaks down, based on the loan program and other details. 

SBA 7(a) loan rates

SBA 7(a) loans can be used for general working capital needs and have interest rates that can either be variable or fixed. Fixed rates have a higher premium but never change, even if the base rate increases over time.

SBA 7(a) rates range from 3% to 8% above the base rate. Use the following table to compare rates for different loan sizes and term lengths. The current (December 2025) Wall Street Journal Prime Rate is 7.00%.

Historical Prime rates

SBA 504 loan rates

SBA 504 loans are designed to purchase assets that help with job creation or business growth, such as new facilities, machinery, or renovating an existing property. These loans are available through certified development companies (CDCs) and offer fixed interest rates.

You can apply for either a 10-year or a 20-year repayment period. The SBA 504 rates are incrementally pegged above the current rates for 5-year and 10-year U.S. Treasury issues. The rate typically totals 3% of the loan amount. 

Historical U.S. Treasury rates

SBA Microloan loan rates

Microloans from the SBA help newer small businesses with startup or expansion costs. Borrowers can get approved for up to $50,000, although the average loan size is $13,000. The maximum repayment term is six years.

Microloan rates are based on the lender’s cost of funds.

Loans over $10,000: 7.75% over cost of funds

Loans of $10,000 or less: 8.5% over cost of funds

Expect SBA microloan rates to range from 8% to 13%. 

SBA Express loan rates

SBA Express loans allow for a shorter approval time, so you can get faster access to capital. In fact, you'll get an initial response within 36 hours. The maximum loan amount is capped at $500,000 and rate maximums are the same as SBA 7(a) loans.

SBA Community Advantage loan rates

The SBA Community Advantage loan program was created to help businesses in underserved markets. These loans were capped at $350,000. Interest rates were negotiated by the lender but were subject to the SBA's maximums. This program was sunsetted in October 2023.

Lenders under this program are now licensed as Community Advantage Small Business Lending Companies in the 7(a) loan program and will continue to provide access to financing to underserved communities.

Typical SBA loan fees

In addition to paying interest on SBA loans, borrowers may also pay an upfront SBA Guaranty Fee.

Upfront fee on SBA 7(a) loans

This fee is based on the approved loan amount, including both the guaranteed and the unguaranteed portions.

To calculate monthly payments for your SBA loan, visit our SBA loan calculator. Need help finding the best interest rate for your SBA loan or other business term loan?

Apply with Lendio today!

You might consider an SBA microloan if you’re trying to start or expand a small business.

But how exactly does getting a microloan through the SBA work? What do you need to meet the requirements? What do terms look like? How do you get started with an application?

We’ll answer  all these questions in more in our guide to SBA microloans. We’ll explain how it all works, highlighting requirements, current interest rates, microloan lenders, alternatives, and how you can apply today.

What is an SBA microloan?

The SBA microloan program consists of small loans funded by the Small Business Administration. However, these loans don't come directly from the SBA to the borrower. Instead, the SBA provides the funds to a network of intermediary lenders, such as community based nonprofit lenders.

This network then provides microloans to eligible small businesses and certain childcare centers. Participants in the nonprofit lender network are selected not only for their experience in lending, but in management and technical assistance as well, so that these intermediaries can administer the microloan program effectively.

SBA microloans provide financing to traditionally underserved businesses, such as startups, women-owned companies, and minority-owned businesses.

Eligible businesses can borrow up to $50,000, but according to the SBA, the average microloan is around $13,000.

What can SBA microloans be used for?

Microloans can be used for many purposes, affording small businesses flexibility when needing to rebuild, re-open, repair, or improve their business.

Seeking an SBA microloan might be a solution if you are looking to:

• Access working capital
• Purchase or replenish inventory or supplies
• Replace or purchase furniture or fixtures in your business
• Purchase new machinery, or secure equipment upgrades

However, you can not use an SBA microloan to pay existing debts, settlements of lawsuits, trade disputes, fines or penalties, or purchase real estate. You also can’t use the SBA microloan for personal, non-business use.

SBA microloan requirements

The SBA microloan loan program is geared for early-stage businesses and startups, but all for-profit small businesses and certain nonprofit childcare centers are eligible.

Because SBA microloans target early-stage businesses and underserved business segments, the requirements for qualification are less stringent than other types of traditional loans. Even if you have limited credit history or lower income, you may qualify.

Of course, each intermediary lender will have its own eligibility requirements, but most will ask for some or all of the following:

• Collateral and/or a personal guarantee from the business owner
• Minimum credit score - 620 or higher is good to have, but intermediary lenders may accept lower scores
• Owner’s Personal finance history
• Business finance history, with current cash flow or cash flow projections
• A certain location within the lenders geographic service area
• A minimum amount of time in business

SBA microloan rates, fees and repayment terms.

Although the SBA places certain restrictions on intermediary lenders, such as not exceeding $50,000 in loan amounts, interest rates and fees are up to your specific lender.

The interest rates will vary depending on your lender, but they typically range between 8% and 13%. And repayments terms are available for up to seven years.

SBA microloans also cannot be made as a line of credit - the microloan is structured as a term loan.

Pros and cons of SBA microloans

Pros

• Easier to qualify for: If you’re a startup or don’t have much business history, it can be hard to qualify for a business loan. Microloans, on the other hand, come with less stringent requirements, having been built to provide financing to businesses that traditionally struggle to find funding. 
• Faster funding: If you apply for a traditional SBA loan, the application and funding process can take months to complete. In comparison, you could receive funding through your microloan in just 30 days. 
• Low interest rates: Like all SBA loans, microloans come with low interest rates. The rates will vary depending on your lender, but the average rate is between 8% and 13%.
• Flexible loan terms: SBA microloans come with repayment terms of up to 7 years, so your monthly payments are more affordable. 

Cons

• Small loan amounts: If you need to borrow more than $50,000, the microloan program might not be the best option for you. 
• Spending restrictions: SBA microloans do come with certain spending restrictions. For instance, you can’t use the funds to pay down existing debt or purchase real estate. 
• Lenders may charge fees: The SBA caps its fees, but individual lenders can charge their own fees. For instance, you may have to pay an application fee, loan processing fee, or closing costs.
• Availability is limited: Since SBA microloans are offered by nonprofit intermediary lenders, these loans can be harder to find. These lenders don’t have the resources and staff that larger lenders have, so these loans might not be available in your area.

Finding SBA Microloan Lenders

The SBA has hundreds of lending partners located across the country, and provides a comprehensive list of microloan lenders to help you find a match. 

Most lenders will require you to either speak to a lending specialist over the phone or apply in person. 

The lender you work with will inform you about any necessary paperwork and documentation to apply. In addition, some lenders may require that you complete a workshop or training program as part of the application process. 

As part of your paperwork, you’ll need to provide a range of information, including:

• Proof of identity
• Description of collateral
• Balance sheet data (income and expenses)
• Personal and business tax records
• Business details (industry, licensing, assets, leases, etc.)

Once you’ve submitted all the required paperwork, your application is complete, and your lender will review and process the loan.

Alternatives to SBA microloans

If you’re not sure if an SBA microloan is the right fit for your business, here are some alternatives to consider:

• SBA 7(a) loans: SBA 7(a) loans are a good choice for businesses that need larger loan amounts. These loans are available for up to $5 million, but the qualification criteria are more strict. 
• Business credit cards: A business credit card can be used for any business purchase, and the application process is relatively easy. If you go this route, look for a card with an introductory 0% APR. 
• Invoice factoring: If you have a lot of cash tied up in your unpaid invoices, invoice financing allows you to leverage your outstanding invoices to get access to capital. 

The bottom line

SBA microloans can help startups and small businesses access the capital they need. These loans are a good option for traditionally underserved borrowers, like women and minorities, or low-income community businesses. If you’re interested in exploring your loan options, you can use Lendio to quickly compare loan offers from multiple lenders.