Managing Director, BRP Onesta – 21st Century Perspectives

What SBA loan should I apply for?

Although small business owners are interested in applying for an SBA loan, routinely they do not know where to start? In this article, we describe the different types of SBA loans and offer a list of lenders who directly fund SBA loans.

By Thomas Tramaglini, Managing Director at BRP Onesta
About Thomas Tramaglini

SBA Loans – What type is best for you?
SBA loans have grown in popularity, especially since the pandemic. The number of small businesses who received funding from popular programs such as the Payroll Protection Program and the Economic Injury Disaster Loan, a previous analysis we did suggests that nearly 1 in 2 business owners have received funding from an SBA product.

However, don’t be fooled! Just because you received an EIDL or PPP loan does not mean you will qualify for a traditional SBA loan.

In fact, in 2021 the SBA reported that there were 32 million small businesses in the United States and only about 12,000 received an SBA 7(a) loan. So, about 0.038% of small businesses in the country did not receive an SBA loan. Since only about 12,000 SBA loans (7(a)) were doled out in 2021 it would suggest that banks are not so motivated to lend to small businesses.

Because this number is so low many small business owners choose to borrow using online or alternative lending options.

If you are a small business owner and you want loan options that are similar to an SBA but without the barriers of SBA, contact our team of advisors now.

Yet, if you are going to apply for an SBA loan, you should know what you are applying for.

Here are different SBA loan products which small business owners can apply for:


Before I get into the other SBA loans, at least 5 times a day we are asked by small business owners if they can apply for the EIDL or if there is another round of PPP coming.

Currently, EIDL is still an active program. However, the date for new applications ended on December 31, 2021, and the SBA is only funding those who applied before that date. The majority of the EIDL applications being considered at this time are those who were declined originally and are in the reconsideration process.

If you are a small business owner and had your EIDL application declined: We have a high success rate of working with small business owners getting their declined EIDL applications funded – contact us and one of our advisors will go over your file.

The PPP program had 2 draws and small business owners would love to get another draw of forgivable funds. To date, there are no plans on providing another draw of PPP funds.

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The difference between EIDL and SBA loans

The major difference between EIDL and other SBA loans is that the EIDL directly comes from the US Department of Treasury and the other loans come from approved lenders. True SBA loans are loans from approved lenders guaranteed up to a certain amount (program dependent) by the federal government.

SBA 7(a) and Express Loan (same guidelines)

SBA 7(a) loans are the most common loan program offered by SBA. The SBA suggests that the 7(a) can be used for business real estate purchases, as well as short- and long-term working capital, refinancing current business debt, as well as the purchase of furniture, fixtures, and supplies. The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. SBA 7(a) loans are not forgivable.

SBA 504

The Certified Development Companies/504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation. 504 loans are available through SBA’s community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA. SBA 504 are repayable over 10 – 20 years and pegged to an increment above the current market rates. SBA 504 loans are not forgivable.


The SBA microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000. SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers.

What are the most prevalent banks for SBA loans?

The US Small Business Administration keeps a list of their 100 most active SBA lenders on their website. So, if you are going to apply for an SBA loan, you need to know who to apply for the loan from. While this list changes frequently, here is a list of SBA’s most active 100 banks.

Not all banks are created equal

In 2021, 1,189 lenders funded SBA 7(a) loans. We work with over 100 SBA banks, and it is important that one knows what these banks are looking for. One does not simply just call the bank and apply for an SBA loan. Lenders can be particular in who they want to fund.

  • Some of the SBA lenders prefer that you do your banking with their bank
  • Some SBA lenders prefer to work with certain industries
  • Some SBA lenders only serve a region or a small area

Almost always better to use an Agent for an SBA loan

Using a specialist may be one of the best ways to attain an SBA loan. Specialists or “Agents” understand what goes into an SBA loan application. Agents like BRP Onesta specialize in both knowing what is needed for approval for an SBA loan and can help a small business owner prepare what is needed for the bank. In the end, small business owners will save a lot of time and money using an agent. If you have any questions or would like to apply for an SBA loan, we will help you.

Do you want to apply for an SBA loan? Do you think you are ready to qualify now? Do you want to find out if you can get pre-approved for an SBA loan before you apply?

If you answered YES to any of these questions, please contact our team at any time for a free, no-obligation phone consultation with one of our specialists. We will set up a time with you and go over what you are looking for, what we think you can qualify for, and what we can do to get you to the finish line.

We also have a host of small business funding opportunities, from equipment loans to small business grants which we keep updated each week (click here)

SBA EIDL Loan Data:
SBA PPP Loan Data:
SBA Office of Advocacy Data:
SBA Loan Descriptions:

Dr. Thomas Tramaglini is the Managing Director for BRP Onesta, a company that supports small businesses. By offering a host of important and affordable services that small business owners tend to not have time to do themselves, the team at BRP Onesta can help small businesses grow infinitely. Although located in on the famous Jersey shore, BRP Onesta serves clients in all 50 states, Puerto Rico, Mexico and Canada.

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