SBA Loans for Small Businesses

An SBA loan is a small-business loan backed in part by the U.S. Small Business Administration — which lets lenders offer lower down payments, longer repayment terms, and more forgiving structures than conventional business loans. The SBA doesn’t lend the money directly; it guarantees a portion of it, and we help you navigate the programs to find the right fit. We work with borrowers across the country.

High leverage is available on the right deal, and we regularly work with borrowers whose credit other lenders turn away.

Who SBA Loans Are For

Business owners buying commercial property for their own operation (owner-occupied real estate is a classic SBA use)
Entrepreneurs acquiring an existing business, including assisted living facilities and other operating companies — and if the acquisition needs a new entity, Sewell Business Services (our sister company) handles the formation
Growing companies that need working capital or equipment financing on reasonable terms
Startups with a strong plan — some SBA programs accommodate newer businesses with solid projections and owner experience
Franchise buyers — many franchises are pre-approved under SBA programs

If your business is real, your plan is solid, and you want better terms than a bank will offer unsecured — SBA deserves a look.

How SBA Loans Work

The two most common programs:

SBA 7(a): The workhorse — used for working capital, equipment, business acquisition, and owner-occupied real estate. Flexible, widely available, and the most common SBA loan in Texas.
SBA 504: Built for major fixed assets — buying commercial real estate or heavy equipment. Typically structured with a bank and a Certified Development Company, with as little as 10% down for qualifying borrowers.

The process:

Eligibility check. We confirm your business type, size, and use of funds fit SBA guidelines — not every business or deal qualifies, and it’s better to know in week one.
Documentation. SBA loans are paperwork-heavy: business and personal financials, tax returns, a business plan or projections, and details on the use of funds. We’ll tell you exactly what’s needed up front.
Underwriting. The lender underwrites the deal with the SBA guarantee in place, which is what makes the terms better than conventional.
Closing. SBA timelines are longer than hard-money timelines — this is a thorough process. We’ll keep it moving and keep you informed.

Terms, rates, and fees are set within SBA guidelines and vary by program and lender. Contact us for current options — we’ll match your situation to the right program rather than forcing a fit.

Why Business Owners Choose SBA Loans

Lower down payments than conventional commercial loans — 10% is common on 504 deals for qualifying borrowers.
Longer repayment terms — up to 25 years on real estate, which keeps payments manageable.
No balloon payments on most SBA structures, unlike many conventional commercial loans.
Accessible to growing businesses that can’t yet command prime bank terms on their own.
A path to ownership — many operators use SBA to buy the building they operate in, turning rent expense into equity.

SBA Loans: What to Know

SBA programs are national, and we work with borrowers across the country. A few things worth knowing:

Texas small businesses are SBA power users — the state’s entrepreneurial economy means local lenders and CDCs know these programs well, which helps timelines.
Owner-occupied commercial real estate (including facilities like assisted living homes where you operate the business) is one of the strongest SBA use cases.
Rural Texas and rural areas nationwide have additional program options worth exploring for qualifying areas.
Be realistic about timelines. SBA is not fast money. If you need to close in three weeks, SBA is the wrong tool — talk to us about bridge or private capital instead, and we can plan an SBA refinance after.

Frequently Asked Questions

How long does an SBA loan take to close? Longer than most borrowers expect — often 60 to 90 days or more from complete application to funding, depending on the program and lender. Start early, and don’t make the purchase contingent on a faster close.

What’s the difference between 7(a) and 504? 7(a) is the flexible general-purpose program (working capital, acquisitions, equipment, real estate). 504 is specifically for major fixed assets like commercial real estate and heavy equipment, with a distinctive low-down-payment structure. We’ll help you pick.

Can I use an SBA loan to buy an assisted living facility? This is a strong use case — you’re acquiring both real estate and an operating business, which fits SBA’s mission well. It’s also our specialty area, so talk to us early in the process.

Do I need perfect credit for an SBA loan? No, but credit matters — for you personally as well as the business. SBA is more forgiving than conventional bank lending, not a free pass. We’ll assess where you stand honestly.

Can startups get SBA loans? Yes, with caveats. You’ll need a convincing business plan, relevant experience, and usually a meaningful cash injection of your own. Some programs are friendlier to newer businesses than others.

Are there fees? Yes — SBA loans carry guarantee fees and standard closing costs, though they can often be financed into the loan. We’ll lay out the full cost picture before you commit.

What businesses don’t qualify? The SBA excludes certain business types (speculative real estate investment, lending, gambling, and a few others). Pure investment-property deals generally don’t qualify — that’s what DSCR and commercial loans are for. We’ll tell you quickly if your deal fits.

See If Your Business Qualifies

SBA paperwork is real, but the terms are worth it for the right deal. We’ll tell you up front whether your business and your use of funds fit — and if they don’t, we’ll point you to what does.

Call 817.862.6922 or email joel@lawtonbuildingandloan.com.

Joel Lawton, NMLS #380245 — Lawton Building and Loan.

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