Exchange Bank SBA Loans — 7(a), 504, and Microloan Programs for Small Business
Exchange Bank offers SBA-backed loan programs that give small businesses access to longer repayment terms, lower down payments, and government-guaranteed financing that conventional loans cannot match. Whether you are starting a business, purchasing equipment, buying commercial property, or refinancing existing debt, the SBA programs available through Exchange Bank are designed to make capital more accessible. Call (800) 397-3962 to speak with an SBA specialist.
Exchange Bank offers three SBA programs: the SBA 7(a) loan (up to $5 million, up to 25 years for real estate, 85% SBA guarantee on loans up to $150K), the SBA 504 (up to $5.5 million CDC portion for fixed assets, 10–25 year terms, 10% down payment), and the SBA Microloan (up to $50,000, up to 6 years). All programs require the business to be for-profit and U.S.-based. Personal guarantees from all 20%+ owners are required. For program details visit sba.gov/funding-programs/loans.
SBA Loan Programs
Government-Backed Financing Offered Through Exchange Bank
Each SBA program targets a different business need. Understanding how they differ helps you apply for the right product and avoid unnecessary delays.
The SBA's Most Versatile Small Business Loan
The SBA 7(a) is the agency's flagship loan program and the one most small businesses encounter first. It functions as a general-purpose commercial loan with the SBA providing a guarantee to Exchange Bank — 85% on loans up to $150,000 and 75% on larger amounts. The guarantee reduces the bank's risk, which is why lenders can approve 7(a) loans to businesses that might not qualify for conventional financing alone.
Use of proceeds is broad: working capital, inventory, equipment, business acquisition, partner buyout, debt refinancing, leasehold improvements, and commercial real estate purchase. Maximum loan amount is $5 million. Repayment terms reach 10 years for working capital and equipment, and 25 years for commercial real estate. Interest rates are capped by the SBA and tied to the prime rate plus a negotiated spread, keeping rates competitive.
- Maximum loan: $5,000,000
- Terms: up to 10 years (working capital/equipment); up to 25 years (real estate)
- SBA guarantee: 85% up to $150K; 75% above
- Down payment: typically 10–20%
- Uses: working capital, equipment, real estate, acquisition, refinancing
Low Down Payment Financing for Fixed Assets and Real Estate
The SBA 504 loan program is structured for long-term fixed asset acquisitions — commercial real estate and major equipment. The unique three-party structure combines Exchange Bank financing (typically 50% of the project), a Certified Development Company (CDC) that provides 40% through an SBA-debenture, and a borrower contribution of just 10%. This means a $2 million building purchase requires only a $200,000 down payment.
The 504 is particularly valuable for owner-occupied commercial real estate transactions. The CDC portion carries a long fixed interest rate set at the time of debenture sale, providing certainty on a significant portion of the debt service. Exchange Bank's portion carries separate terms. Loan sizes through the CDC portion can reach $5.5 million for standard projects and $5.5 million per project for energy-efficient or manufacturing businesses.
- Project structure: 50% Exchange Bank / 40% CDC / 10% borrower
- Minimum down payment: 10% (15% for new businesses or special-purpose properties)
- CDC portion: up to $5.5 million, 10 or 20-year fixed rates
- Eligible uses: owner-occupied real estate, heavy equipment, major renovations
- Job creation or retention requirement applies
Small Amounts, Real Impact for Early-Stage Businesses
The SBA Microloan program provides small loans — up to $50,000 — through nonprofit intermediary lenders. Exchange Bank partners with SBA-approved microloan intermediaries to help early-stage businesses, sole proprietors, and underserved entrepreneurs access capital that falls below conventional loan minimums. The average SBA microloan is around $13,000.
Microloans can be used for working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. Real estate purchase and refinancing of existing debt are excluded. Repayment terms extend up to 6 years. Interest rates are negotiated between the borrower and the intermediary lender, typically in the 8–13% range. Some intermediaries also provide business training and technical assistance alongside the loan.
- Maximum loan: $50,000
- Average loan size: approximately $13,000
- Terms: up to 6 years
- Uses: working capital, inventory, equipment, supplies
- Ideal for: startups, sole proprietors, underserved business owners
Program Comparison
SBA Loan Programs Available Through Exchange Bank
A side-by-side look at the three SBA programs Exchange Bank supports. For current SBA interest rate maximums and guarantee fee schedules, visit sba.gov/funding-programs/loans.
| SBA Program | Max Amount | Max Term | Down Payment | Eligible Use | SBA Guarantee % |
|---|---|---|---|---|---|
| SBA 7(a) | $5,000,000 | 25 years (real estate); 10 years (other) | 10 – 20% | Working capital, equipment, real estate, acquisition, refinancing | 85% (≤$150K); 75% (>$150K) |
| SBA 504 | $5,500,000 (CDC portion) | 10 or 20 years (CDC); up to 25 years (bank portion) | 10% (15% new biz or special purpose) | Owner-occupied real estate, heavy equipment, major renovations | 40% via CDC debenture |
| SBA Microloan | $50,000 | 6 years | Varies by intermediary | Working capital, inventory, supplies, equipment (no real estate) | N/A (intermediary-funded) |
Program terms reflect current SBA guidelines and are subject to change. Contact Exchange Bank for a current program summary and rate sheet.
Eligibility at a Glance
Who Qualifies for an SBA Loan Through Exchange Bank?
SBA loans have defined eligibility requirements set by the federal government. Understanding them before you apply saves time and sets realistic expectations.
Business Size and Type
The business must be for-profit, operate in the U.S., and meet SBA size standards — generally fewer than 500 employees or under $7.5M in annual revenue depending on industry. Certain business types are ineligible: speculative investments, gambling, lending, and businesses principally engaged in political or lobbying activities.
Owner Credit and Character
All owners with 20% or more stake must sign a personal guarantee and submit to a personal credit and background review. Exchange Bank looks for a minimum personal credit score of 620–650. Prior bankruptcies do not automatically disqualify an applicant, but timing and circumstances are evaluated. A FICO SBSS score of 155 or above is required for 7(a) loans under $500,000.
Credit Unavailability
SBA loans are intended to supplement — not replace — conventional lending. To qualify, the borrower must demonstrate that conventional financing on reasonable terms is not available. In practice, if Exchange Bank determines the business qualifies for a conventional loan at comparable terms, the SBA program may not be required. Your banker will advise on the most appropriate structure for your situation.
FAQ
SBA Loan Questions — Exchange Bank Answers
Answers to the questions small business owners ask most often when exploring SBA loan programs.
What are the SBA loan eligibility requirements?
To qualify for an SBA loan through Exchange Bank, the business must be for-profit, operate in the United States, meet the SBA size standards for its industry, have reasonable owner equity invested in the business, and demonstrate that other financing is not available on reasonable terms. Personal guarantees from all owners with 20% or more are mandatory. Certain business types — including speculative real estate, gambling, and lending — are ineligible regardless of financial strength.
What credit score is needed for an SBA loan?
Exchange Bank and most SBA lenders look for a personal credit score of at least 620–650. For SBA 7(a) loans under $500,000, the SBA uses the FICO Small Business Scoring Service (SBSS) with a minimum score of 155 as a pre-screen. Loans above $500,000 undergo full manual underwriting. Higher scores — above 680 — generally result in faster approvals and better rate negotiations. Poor credit does not automatically disqualify an application if there is a documented, resolved explanation.
What is the difference between an SBA 7(a) and an SBA 504 loan?
The SBA 7(a) is a general-purpose loan for working capital, equipment, real estate, acquisition, and refinancing — up to $5 million, with terms to 25 years for real estate. The SBA 504 is exclusively for major fixed assets (commercial real estate and heavy equipment) using a three-party structure: Exchange Bank funds 50%, a Certified Development Company funds 40%, and the borrower contributes 10% down. The 504's key advantage is the low down payment on real estate and a long fixed rate on the CDC portion. For conventional lending alternatives, see the business loans page.
How long does an SBA loan application take?
SBA 7(a) loans typically take 2 to 8 weeks from complete application to funding. SBA Express loans (under $500,000) receive an SBA response within 36 hours, though bank underwriting still takes 1 to 3 weeks. SBA 504 loans require CDC involvement and take 45 to 90 days. The most important factor in timeline is application completeness — submitting two years of business and personal tax returns, year-to-date financial statements, a business plan, and proof of collateral at the start cuts weeks off the process.
What collateral is required for an SBA loan?
SBA guidelines require lenders to take available collateral but prohibit declining an otherwise qualified loan solely due to insufficient collateral. Exchange Bank takes a first lien on assets financed with loan proceeds. For loans above $350,000, available personal real estate must also be pledged if business assets do not fully secure the loan. Personal guarantees from all owners with 20% or more stake are always required. For SBA 504 loans, the financed property itself serves as the primary collateral.
Start Your SBA Loan Application with Exchange Bank
Exchange Bank's SBA specialists guide you through program selection, documentation, and the approval process. Fewer delays. Real answers. FDIC insured. NMLS #480228.
Related Services
More Business Lending from Exchange Bank
Business Loans
Conventional term loans, lines of credit, and equipment financing for businesses that qualify outside SBA parameters or need faster conventional approvals.
View Business Loans →Business Checking
A business checking account is required to receive SBA loan disbursements and manage repayments. Exchange Bank makes setup seamless for new borrowers.
View Business Checking →Commercial Real Estate
Conventional CRE financing for investment properties and owner-occupied purchases, often used alongside SBA 504 programs to optimize the capital stack.
View CRE Loans →