The U.S. Small Business Administration ended fiscal year 2025 with a milestone that should encourage every entrepreneur considering expansion or launch in 2026: the agency guaranteed a record-breaking $44 billion in loans to small businesses across America. The achievement represents not just a bureaucratic high-water mark but a signal that capital remains accessible for qualified business owners.

For the millions of Americans who run or aspire to run small businesses, understanding what this means—and how to access these programs—could be the difference between growth and stagnation in the year ahead.

Breaking Down the Record

The SBA's fiscal year 2025 lending encompassed two primary programs:

  • 7(a) Loan Program: 77,600 loans totaling $37 billion. This flagship program serves general business purposes including working capital, equipment purchases, debt refinancing, and real estate acquisition.
  • 504 Loan Program: 6,750 loans totaling $7.8 billion. These loans focus on major fixed asset purchases, particularly commercial real estate and heavy equipment.

The numbers represent significant growth over prior years and suggest that despite economic uncertainty, lenders remain willing to extend credit to small businesses when SBA guarantees reduce their risk.

What Makes SBA Loans Attractive

SBA loans aren't directly from the government. Instead, the SBA guarantees a portion of loans made by approved lenders—typically banks, credit unions, and specialized SBA lenders. This guarantee (ranging from 50% to 85% depending on the program) reduces lender risk and enables terms that many small businesses couldn't otherwise access:

  • Lower down payments: SBA loans typically require 10% to 20% down, compared to 25% to 30% for conventional commercial loans.
  • Longer repayment terms: Up to 10 years for working capital, 10 years for equipment, and 25 years for real estate—spreading payments and improving cash flow.
  • Competitive rates: While not the cheapest credit available, SBA rates are regulated and typically more favorable than unsecured business credit.
  • Accessibility: Businesses that might not qualify for conventional bank loans often can secure SBA-guaranteed financing.

Current SBA Loan Rates for 2026

As of early 2026, SBA loan rates reflect the elevated interest rate environment:

  • 7(a) loans: Rates range from 9.75% to 14.75%, depending on loan size, term, and lender
  • 504 loans: Rates typically fall between 5% and 7%, reflecting the fixed-rate structure of the program

While these rates are higher than the ultra-low levels of 2021-2022, they remain manageable for businesses with solid cash flow and growth prospects. The Fed's projected rate cuts later in 2026 could bring modest relief.

New Programs for 2026: The MARC Loan

Manufacturers have a new tool available this year. The SBA recently launched the 7(a) Manufacturers' Access to Revolving Credit (MARC) Loan program—the first SBA loan offering specifically dedicated to manufacturers.

The program provides working capital through revolving lines of credit, allowing manufacturers to draw funds as needed rather than taking a lump sum. The SBA is also waiving guarantee fees for qualifying manufacturers in fiscal year 2026, reducing upfront costs.

The first MARC loans were approved in December, totaling $3.5 million to four manufacturers. As the program scales, it could provide significant liquidity to a sector facing both opportunities (reshoring trends) and challenges (tariff uncertainty).

Who Qualifies for SBA Loans

Eligibility requirements for SBA loans include:

  • Size standards: Your business must meet SBA size definitions, which vary by industry but generally include companies with fewer than 500 employees or under $7.5 million to $41.5 million in average annual receipts, depending on sector.
  • For-profit status: The business must operate for profit in the United States.
  • Owner investment: Owners must have invested their own time and/or money in the business.
  • Other financing unavailable: You must demonstrate that you've been unable to obtain credit on reasonable terms from other sources.
  • Good character: Owners must be of good character, including no recent bankruptcies or criminal history that would affect loan repayment.

How to Apply for an SBA Loan in 2026

The application process involves several steps:

1. Assess your needs: Determine how much capital you need and for what purpose. Different loan programs serve different needs—working capital, equipment, real estate, or disaster recovery.

2. Find an SBA-approved lender: Not all banks participate in SBA programs. The SBA's Lender Match tool (available at sba.gov) can connect you with approved lenders in your area.

3. Prepare documentation: Expect to provide business and personal financial statements, tax returns, business plans, and cash flow projections. The documentation requirements are more extensive than for conventional loans but are standardized across SBA lenders.

4. Apply: Work with your chosen lender to complete the application. Processing times vary by lender and loan type but typically range from a few weeks to several months.

5. Close and fund: Once approved, you'll close on the loan and receive funds according to your agreement terms.

What the Record Lending Means for 2026

The $44 billion in SBA lending during fiscal year 2025 suggests several things about the current environment:

  • Lender confidence: Banks and credit unions remain willing to lend to small businesses when SBA guarantees reduce their exposure.
  • Small business resilience: Despite economic headwinds, entrepreneurs continue to pursue growth and investment.
  • Program effectiveness: The SBA's loan guarantee model continues to successfully bridge the gap between small business needs and lender risk tolerance.

For entrepreneurs, the data should be encouraging. Capital is available for qualified borrowers with solid business plans and reasonable creditworthiness.

The Bottom Line

The SBA's record-breaking $44 billion in fiscal year 2025 lending represents opportunity for small business owners in 2026. Whether you're looking to expand operations, purchase equipment, acquire real estate, or simply strengthen working capital, SBA-guaranteed loans offer terms that many businesses couldn't access through conventional channels. The key is understanding the programs, preparing thorough documentation, and working with experienced SBA lenders who can guide you through the process.