SBA loan basics
Short answer
The SBA typically guarantees between 75% and 85% of the loan amount to the lender, depending on the loan size.
For loans up to $150,000, the SBA guarantees 85%. For loans over $150,000 up to the maximum of $5 million, the guaranty is typically 75%. This percentage applies to the lender, not the borrower.
A $100,000 loan would have an 85% SBA guaranty, meaning the SBA would pay the lender $85,000 if the borrower defaults. A $500,000 loan would have a 75% guaranty, meaning $375,000.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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