SBA loan basics
Short answer
The SBA generally guarantees up to 85% for loans of $150,000 or less, and up to 75% for loans over $150,000, with a maximum guarantee of $3.75 million.
The percentage of the loan guaranteed by the SBA is tiered. This guarantee reduces the risk for the lender, making them more willing to lend to small businesses that might not qualify for conventional financing. The maximum dollar amount the SBA will guarantee is $3.75 million (75% of the $5 million maximum loan).
A $100,000 loan would receive an 85% SBA guarantee ($85,000). A $1,000,000 loan would receive a 75% SBA guarantee ($750,000).
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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