Overview
SBA loans are government-backed financing solutions designed for established businesses with strong credit, consistent cash flow, and complete documentation. The application and underwriting process is more rigorous than alternative financing, but qualifying businesses may benefit from longer terms and more sustainable structures. Appropriate Capital helps businesses understand whether an SBA program fits their situation and prepares the file accordingly.
- SBA 7(a) and 504 loan programs for qualifying businesses
- Longer terms and potentially lower payments than short-term alternative financing
- Can support business acquisition, real estate, equipment, and working capital needs
- Government-backed financing with structured underwriting and documentation
Under SBA SOP 50 10 8, Merchant Cash Advance and factoring arrangements became ineligible for SBA debt refinancing effective June 1, 2025. Businesses carrying MCA positions should not assume an SBA loan can refinance that debt, and may need to evaluate alternative private, conventional, or asset-based structures.
Explore MCA Buyout OptionsThe SBA package is more extensive than an MCA buyout. Key items include:
- Last 3 years business and personal tax returns (for 20%+ owners)
- 2026 YTD P&L and Balance Sheet, plus 2025 year-end financials
- SBA Form 413 — Personal Financial Statement for each guarantor
- Last 4–6 months business bank statements and liquidity verification
- Business Debt Schedule, ownership breakdown, and entity documents