#sba
SBA loan programs, applications, and small business resources
As of March 1, 2026, the SBA eliminated the mandatory FICO SBSS score prescreen for 7(a) Small Loans of $350,000 or less, replacing the single national cutoff (most recently 165) with lender-specific credit models and a new 1.1x minimum debt service coverage ratio — here's what changed, why approval criteria now vary by bank, and how to prepare your financials before applying.
A term loan charges interest on the full lump sum from day one; a line of credit only charges for what you draw. This guide compares 2026 rates (bank term loans 6.8%–11%, SBA 7(a) 9.75%–13.25%, bank lines 8%–14%), qualification bars, and a three-question framework for choosing the right product.
The SBA's $50 million Manufacturing in America E2G grant funds ~10 intermediary organizations — not manufacturers directly. Here's how small manufacturers access the free training, technical assistance, and government-contracting help it pays for, plus how it pairs with the Made in America 7(a) loan enhancement.
The SBA's 90% Grocery Guarantee, launched May 2026, raises the federal guarantee on food-supply-chain loans from 75% to 90% — up to $5 million over 25 years — and approved $30 million in its first month. Here's who qualifies, how it differs from a standard 7(a) loan, and what lenders need to see in your books before you apply.
The SBA's 2026 Grocery Guarantee raises its loan guarantee from 75% to 90% for roughly 20 qualifying food-supply-chain NAICS codes, covering loans up to $5 million with terms up to 25 years, and backed 19 loans totaling more than $30 million in its first month.
The SBA has waived upfront fees on 7(a) and 504 loans for manufacturers through September 2026 and launched MARC, a revolving credit line up to $5 million for NAICS 31-33 businesses, after issuing its first $3.5 million in MARC loans to four manufacturers in December 2025.
The SBA's Made in America enhancement raises the 7(a) International Trade Loan guarantee to 90% on loans up to $5 million for manufacturers and waives guarantee fees through fiscal year 2026, cutting a lender's unguaranteed exposure on a $3 million loan from roughly $750,000 to $300,000.
Building business credit from zero follows a fixed sequence — form an LLC, get an EIN, obtain a D-U-N-S number, open vendor accounts that report to bureaus, then add a business credit card — with PAYDEX and FICO SBSS scores following naturally from on-time payment history.
The Fed held rates at 3.50%-3.75% for a fourth consecutive meeting in June 2026, keeping the prime rate at 6.75% and SBA 7(a) variable rates near 9-11.5% APR, so refinancing into a fixed rate can pay off once you account for SBA prepayment penalties (5%/3%/1% in years one through three) and lender fees.
Effective March 1, 2026, SBA 7(a) and 504 loans require 100% of direct and indirect owners to be U.S. citizens or nationals with a U.S. principal residence — green card holders no longer qualify — and the FICO SBSS score is retired in favor of a 1.10 minimum debt service coverage ratio and full commercial credit analysis. Here's who's affected and how to prepare.
No legitimate grant ever requires an upfront fee — the FTC reports nearly 30% of 2026 scam victims were first contacted on social media with losses topping $2.1 billion, and fake grant offers follow a predictable four-step script from unsolicited contact to escalating "release fees."
As of July 4, 2026, the SBA has decoupled its 7(a) and 504 loan programs, replacing their shared $5 million cap with independent $5 million limits each — giving qualifying small businesses access to up to $10 million in combined SBA-guaranteed financing.
