Yes, the SBA offers loan terms ranging from 10 to 25 years. The 10-year loan term is more commonly seen when financing working capital expenses while the 25-year loan term is typically reserved for fixed assets, like real estate.
| Lender | Best for… | Max. loan amount | Term length | Min. interest rate | Time in business | |
|---|---|---|---|---|---|---|
 | Overall | $5,000,000 | Up to 300 months | 10.50% variable, 12.50% fixed Some lenders may charge lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA. | 24 months (Recommended) | See Business Loan Offers |
| Commercial real estate loans | $5,500,000 | Up to 300 months | Approximately 3.00% of the loan amount | 24 months (Recommended) | See Business Loan Offers |
 | Secured business loans | $100,001+ | 24 to 84 months | Not disclosed | 24 months | See Business Loan Offers |
 | Fast funding | $500,000 | 6 to 60 months | 7.49% | 24 months | See Business Loan Offers |
 | Prequalification | $5,000,000 | 12 to 300 months | 4.99% | 24 months | See Business Loan Offers |
 | Minority-run startups | $250,000 | 12 to 60 months | 8.49% | 12 months | See Business Loan Offers |
 | Established businesses | $500,000 | Up to 144 months | 8.69% | 24 months | See Business Loan Offers |
$5,000,000
10.50% to 14.00%
14.00% for loans $50,000 or less
13.50% for loans $50,001 to $250,000
12.00% for loans $250,001 to $350,000
10.50% for loans above $350,000
Some lenders may charge lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
12.50% to 15.50%
15.50% for loans $25,000 or less
14.50% for loans $25,001 to $50,000
13.50% for loans $50,001 to $250,000
12.50% for loans above $250,000
Some lenders may charge lower rates. Based on the current prime rate of 7.50% + a rate maximum set by the SBA.
Up to 300 months
The SBA (7)a loan is a form of general business financing offered by the Small Business Administration (SBA). It can be used for anything from covering working capital costs to purchasing equipment or refinancing debt. That flexibility, plus its capped interest rates and high maximum loan amount, make it a popular choice among business owners, especially those who may not be able to qualify for a traditional bank loan.
Still, these loans are not the right fit for everyone. Not all businesses can qualify for SBA funding and the Administration’s approval and funding times can be much longer than what you might expect directly from a bank or online lender.
Read our full SBA (7)a loan review.
In order to qualify, you’ll need to meet the SBA’s criteria of:
$5,500,000
Approximately 3.00% of the loan amount
Up to 300 months
If you’re looking for a commercial loan, you may want to consider the SBA CDC/504 loan. Although this loan can only be used to build, purchase or improve major fixed assets – meaning mainly real estate and large equipment – it has a lot of benefits. For one, the interest rate is typically only equal to 3.00% of the loan amount. For another, its available loan amount extends to $5,500,000.
That said, like the SBA (7)a loan, the SBA CDC/504 loan has its limitations. Loan approval and funding times are long. Plus, only certain types of businesses are eligible for this financing.
Read our full SBA CDC/504 loan review.
In order to qualify, you’ll need to meet the SBA’s criteria of:
$100,001+
Not disclosed
24 to 84 months
As a rule of thumb, you might be able to qualify for a larger loan amount if you’re okay with the idea of using collateral to secure your loan. PNC Bank’s secured loans are no exception. Its secured loan amounts start at over $100,000 and generally require equipment or real estate as collateral. Plus, the lender boasts physical branches for those who prefer an in-person element to their lending experience.
However, as a traditional bank lender, PNC might have stricter eligibility criteria than alternative lenders. What’s more, PNC isn’t very transparent about its qualifying requirements, so it can be hard to tell if you’re a good fit.
In order to qualify, you’ll need to meet PNC Bank’s criteria of:
$25,000 to $500,000
7.49%
6 to 60 months
iBusiness Funding’s standout benefit is its fast funding. Borrowers can receive financing in as little as two business days. In addition, the lender provides every applicant with a dedicated account manager, who can answer your questions and assist you through the application process.
Yet, it has a longer time-in-business requirement than some other lenders on this list and it doesn’t disclose its annual revenue requirements, which means it may not be a good fit for some borrowers. Not to mention that its maximum loan amount is much lower than some of our other lender picks, and it requires a blanket lien.
Read our full iBusiness Funding business loan review.
In order to qualify, you’ll need to meet iBusiness Funding’s criteria of:
Up to $5,000,000
4.99%
12 to 300 months
iAdvance Now is one of the only lenders on this list to offer the opportunity to prequalify for one of its loans, which means you can see what business loan interest rate you qualify for without harming your credit score. Plus, if you have a high score, this lender offers affordable interest rates on loan amounts up to $5,000,000.
But, at the same time, its minimum annual revenue requirement is fairly high at $240,000 and its minimum time in business requirement extends to two years. Together, this means that iAdvance Now is likely only going to be a fit for established businesses. Additionally, the lender may charge an origination fee, which can add to your total costs.
In order to qualify, you’ll need to meet iAdvance Now’s criteria of:
$5,000 to $250,000
8.49%
12 to 60 months
Accion Opportunity Fund could be a smart pick for minority entrepreneurs. This nonprofit lender offers startup loans at affordable rates, as well as business coaching and mentoring services to help business owners get their projects off the ground. As a result, its eligibility requirements are much more lenient than you might find with a traditional lender.
Since the fund is dedicated to upending racial and gender inequities in business, it’s likely going to be a good choice for minority entrepreneurs. However, since it’s geared toward those who are just starting out, you may not be able to access as much funding as you may find elsewhere.
In order to qualify, you’ll need to meet Accion Opportunity Fund’s criteria of:
$20,000 to $500,000
8.69%
Up to 144 months
For businesses that can meet the lender’s eligibility requirements, BHG Financial has plenty of benefits. Its interest rate is fairly affordable and its loan terms extend all the way to 12 years. What’s more, you don’t have to put up any personal collateral to secure the loan, so you won’t be on the hook for repayment if your business defaults.
With that in mind, though, BHG Financial is likely going to be the best fit for established businesses. At $1 million, its annual revenue requirement is pretty high and you have to have been in business for at least two years.
In order to qualify, you’ll need to meet BHG Financial’s criteria of:
As the name suggests, long-term business loans are generally small business loans that offer longer than usual repayment terms. Typically, these loan terms can extend anywhere from five to 25 years.The major benefit of a long-term loan is that your monthly payment will be lower and you’ll be given more time to pay off your purchase. But, in exchange, you’ll likely pay more in interest charges over time.
Applying for a business loan doesn’t have to be overly complicated. Usually, this process can be completed in just a few simple steps.
1. Figure out how much financing you need: Before filling out a loan application, take some time to consider how you’ll be using the funds and how much financing you’ll need. Consider using a business loan calculator to get a sense of what your monthly payment could look like with a variety of different loan amounts. Then, choose an amount that is well suited to both your business needs and your budget.
2. Evaluate your eligibility: Once you know how much you need to borrow, it’s a good idea to research common business loan requirements. Typically, lenders evaluate borrowers on criteria such as how long they’ve been in business, the business’s total annual revenue and their personal and business credit scores.
3. Shop around for a loan: Some lenders offer the opportunity to prequalify for a loan, which shows you your loan terms before you submit a formal loan application. Do your due diligence by reading lender reviews and gathering multiple loan offers before committing to compare rates. Taking this step can help you secure the best loan terms for you and may even help you save money over the life of the loan.
4. Apply for a loan: After you’ve settled on the best small business lender for you, it’ll be time to submit a loan application. Typically, you’ll be able to fill out your application online or over the phone. However, as part of the review process, you may be asked to submit some supplemental documentation, such as a business plan or business tax returns.
Also known as a Uniform Commercial Code 1 (UCC-1) filing, a blanket lien is a public, itemized listing of the assets that are being used to secure your financing. This filing gives the lender the right to repossess those assets if you stop making payments on your loan.
Typically, blanket liens cover all of a business’s assets, including real estate, equipment, vehicles, inventory, cash and intellectual property. They also apply to future assets as well as current ones.
Having a blanket lien in place can make it very difficult to be approved for new financing in the future, including things like equipment loans and commercial auto financing. You may also need your lender’s permission to sell your old equipment.
Not all lenders use blanket liens. Before choosing a lender, consider whether you’re likely to need any additional financing in the future.
Once you have a few small business loan offers in hand, make sure you’re using similar metrics to compare them against one another. Here’s a look at what to consider:
Even a one-point difference in an interest rate can make a huge impact on how much you’ll pay.
For example, if you take out a $50,000 business loan with a 10-year repayment term, a 14% interest rate will cost you $31 less each month and $3,642 less over the life of the loan than a 15% interest rate.
Plus, if you can afford to put some extra money toward your loan each month, you’ll be able to pay it off much faster and save even more. For this example, if you put that additional $31 a month towards the 14% loan, you’d pay it off 9 months early and save an additional $3,921.
All numbers are rounded to the nearest dollar.
| 15% Interest Rate | 14% Interest Rate | 14% Interest Rate With Additional Payments | |
|---|---|---|---|
| Monthly Payment | $807 | $776 | $807 |
| Total Interest Charges | $46,802 | $43,160 | $39,239 |
| Total Repayment | $96,802 | $93,160 | $89,239 |
| Time to pay off loan | 10 years | 10 years | 9 years and 3 months |
| Pros | Cons |
|---|---|
Unlike short-term business loans, long-term loans tend to have monthly repayment schedules, which can be easy to budget around. The required payments on long-term loans tend to be smaller than short-term loans. Choosing a term loan can help you build credit over time. | You’ll likely pay more interest over the life of the loan than you would on a loan with a shorter repayment term. Due to their length, the eligibility requirements for long-term loans may be more stringent than other types of business funding. The funding times on long-term loans may be longer than with other forms of lending. |
If you don’t think a long-term business loan will be the right fit for you, think about using one of these alternative options instead.
As you might be able to guess, short-term business loans have shorter repayment terms than long-term business loans. Typically, their repayment windows span anywhere between four and 24 months.
In addition to paying off the loan faster, you’ll likely face a higher repayment amount than you would with a long-term loan and you’ll probably be expected to make daily or weekly payments on the balance, rather than a monthly one.
A business line of credit works more like a credit card than a traditional term loan. With this type of financing, you’re able to borrow funds as needed, up to a preset limit. Once you pay down your balance, you can borrow against the limit again. Additionally, lines of credit only charge interest on the amount that you’ve borrowed.
In contrast, with a term loan, you’ll likely have a fixed, monthly payment that repays a portion of both the principal and interest on the loan. You’ll receive the funds in one lump sum and will owe interest on the whole amount from the beginning of the loan term.
If you’re financing a specific asset, like equipment, vehicles or machinery, you may want to consider equipment financing. This is a specific type of asset-based financing that uses the asset you’re purchasing as collateral to secure the loan.
We reviewed more than 14 lenders to determine the overall best seven long-term business loans. To make our list, lenders must meet the following criteria:
Yes, the SBA offers loan terms ranging from 10 to 25 years. The 10-year loan term is more commonly seen when financing working capital expenses while the 25-year loan term is typically reserved for fixed assets, like real estate.
The biggest benefit of long-term loans is that they can help you keep your monthly payment amount low by allowing you to spread the cost out over time. This can be especially helpful when you need to purchase expensive assets, like property, vehicles or machinery.