How to Get an SBA Loan in 2025
Tariffs are squeezing small and mid-sized businesses in 2025, with 145% levies on Chinese imports and 10–25% on goods from Canada and Mexico. Costs are spiking. Access to capital? Tighter. For founders navigating this new landscape, the SBA’s 7(a) loan program remains essential—but getting funded is no longer as easy as it was in 2023–2024.
This article breaks down what’s changed, when it takes effect, and how to practically prepare—whether you're running an AI startup or a family bakery.
The 7(a) Loan Program: Then and Now
Then: Since 1953, the SBA’s 7(a) loan program has guaranteed financing through private lenders for businesses that don’t qualify for traditional loans. Borrowers could access up to $5 million in working capital, real estate, or refinancing, with SBA guarantees covering 75–85% (90% for exporters). Terms extended up to 25 years for real estate and 10 for working capital.
In FY 2024, the SBA approved 70,242 loans totaling $31 billion, with an average size of $443,097. The Biden-era “Do What You Do” policy eased underwriting for loans under $500,000, increasing accessibility—but defaults doubled, according to the SBA in April 2025.
Now: The 7(a) loan cap and guarantee percentages remain the same, but SOP 50 10 8 (released April 22, 2025) reintroduces strict underwriting standards—including 10–20% equity injections and full repayment analysis. Lender fees are back to cover a $460 million shortfall.
Sub-programs like SBA Express (up to $500,000, 50% guarantee) and the Working Capital Pilot (up to $5 million) still exist but target more specific needs.
A major shift: all M&A loans must include seller equity rollovers to qualify for a 7(a) guarantee. Zero-down deals are largely gone.
Regulation Status: What’s Final and When It Starts
April 22, 2025: SOP 50 10 8 rules finalized
June 1, 2025: M&A equity rollover and zero-down restrictions begin
January 1, 2025: Beneficial Ownership Information (BOI) required for all new loan applicants
March 2025: Lender fees reinstated
April 1, 2025: CFPB demographic data collection begins for mid-volume lenders
January 17, 2026: All stricter underwriting standards take full effect
Fee details are available via the SBA’s 2025 fee schedule.
What This Means for SMBs: Challenges and Opportunities
Stricter Underwriting
Challenge: Lenders now require 10–20% equity injections. That means a startup seeking $50,000 must show $5,000–$10,000 in cash reserves. Vistage data shows 40% of SMBs face loan access barriers in 2025.
Opportunity: The crackdown protects the $31 billion program’s long-term viability, rewarding applicants with strong financials and consistent cash flow.
Higher Fees
Challenge: SBA reinstated fees in March 2025—expect $2,000–$3,000 in upfront costs for a $100,000 loan. These hit retail and restaurant businesses especially hard.
Opportunity: These fees are sustaining the program. Businesses with stable revenue (e.g., engineering or logistics firms) still benefit from lower rates than conventional credit.
M&A Lending Limits
Challenge: Starting June 1, 2025, seller equity rollovers are required, and zero- down deals are severely limited. A $500,000 acquisition now typically requires $100,000 in buyer equity or rollover.
Opportunity: These changes raise the bar for acquirers, reducing lender risk and improving funding access for well-prepared buyers.
BOI & Demographic Reporting
Challenge: As of January 1, 2025, all 7(a) borrowers must submit a BOI report to FinCEN—30–60 minutes of added admin work. Errors or missed filings can result in $10,000+ fines.
Opportunity: These steps streamline ownership verification and could increase access for minority-owned businesses as lenders track and report lending equity data.
SBA Staffing Cuts
Challenge: In March 2025, the SBA cut its staff by 43%. Approval times for non- preferred lenders have slowed to 8–10 weeks.
Opportunity: Preferred lenders (PLPs) can still approve loans in 2–4 weeks thanks to delegated authority. Strategic lender choice is now mission-critical.