Good credit business loans.

A three-part structure: a bank funds 50%, a Certified Development Company funds 40% at a long-term fixed rate tied to Treasuries, and you put down 10%. The cheapest long-money in the market if you are buying a building you will occupy.

Max amount

$5.5M (CDC portion)

Speed

45–120 days

Cost

~5.5%–6.5% fixed (CDC tranche)

Time in business

2 years

Watch out: Cannot be used for working capital or inventory. Two closings, two sets of fees, and a slower clock than 7(a).

The workhorse of federally guaranteed lending. The SBA guarantees 50–85% of the balance, so partner banks can lend to businesses that would fail a conventional credit box. Longest terms and lowest legal cost of capital available to a small business, in exchange for the heaviest paperwork.

Max amount

$5.0M

Speed

30–90 days

Cost

9.5%–11% APR (prime + 2.5–3%)

Time in business

2 years

Watch out: Packaging and closing costs run 2–3.75% in guarantee fees. Prepayment penalties apply in years 1–3 on terms of 15 years or more.

Underwritten on the asset first and the sponsor second. Debt service coverage ratio and loan-to-value drive the entire quote; a 1.25x DSCR at 70% LTV is the conventional benchmark.

Max amount

$20M+

Speed

30–60 days

Cost

8%–12% APR

Time in business

2 years

Watch out: The balloon is the risk, not the rate. Plan the refinance exit before you sign the note.

The asset secures the loan, so the equipment's resale value carries much of the credit decision. This is why a 560 FICO can finance a titled truck at rates a 700 FICO cannot get on an unsecured loan.

Max amount

$5.0M

Speed

3–10 days

Cost

7%–9% A-tier / 10%–18% B–C tier

Time in business

1 year

Watch out: Section 179 and bonus depreciation can materially change after-tax cost — model the deal net of the deduction, not gross.

SBA turnaround compressed to 36 hours for the agency's portion, with the lender using its own underwriting. You trade a lower guarantee (50%) and a higher rate for a decision measured in weeks instead of months.

Max amount

$500k

Speed

10–30 days

Cost

12%–14% APR (prime + 4.5–6.5%)

Time in business

2 years

Watch out: The rate premium over standard 7(a) is real — roughly 300 bps. Only worth it when timing genuinely drives the deal.

A lump sum with a fixed amortization schedule. Simple, predictable, and the correct instrument whenever the use of funds has a known cost and a known payback — a build-out, a hire cohort, a marketing push with measurable CAC.

Max amount

$1.0M

Speed

3–14 days

Cost

8%–30% APR

Time in business

1 year

Watch out: Online lenders quote in 'total payback' rather than APR. Always convert to APR before comparing against a bank term sheet.

Approved capacity you draw against and repay repeatedly, paying interest only on the outstanding balance. The single most useful instrument for seasonality, payroll timing, and inventory cycles — and the one businesses most often apply for too late.

Max amount

$500k

Speed

3–10 days

Cost

8%–30% APR on drawn balance

Time in business

6–12 months

Watch out: Draw fees, maintenance fees, and annual renewal fees can add 2–5% to the effective cost even in months you never draw.

Expensive money with a short fuse, priced on certainty of exit rather than borrower credit. Correct when a sale, refinance, or receivable is contracted and dated; wrong when the exit is a hope.

Max amount

$5.0M

Speed

7–21 days

Cost

11%–15% APR + 1–3 points

Time in business

1 year

Watch out: Extension fees are punitive. Budget for the exit landing 60 days later than you expect.