A Business Owner's Primer on the SBA Loan Program
If you're running a business in Utah, chances are you've heard about SBA loans. But what are they, really? And are they worth exploring for your company? What is important to know?
What Is the SBA Loan Program?
First, let's unpack the program itself.
SBA loans are not loans directly from the government. Instead, they are loans made by banks and other lenders but backed by the U.S. Small Business Administration (SBA). This guarantee reduces risk for lenders and helps more small businesses access capital on favorable terms.
Without the SBA program, it's likely small businesses would have an even harder time accessing capital. They step in to help lenders better serve our community.
Understanding the Most Common SBA Loans
The most common SBA loan is the 7(a) loan. It can be used for everything from working capital to equipment purchases to buying real estate. Loan amounts can range from a few thousand dollars to $5 million, with repayment terms from 7 to 25 years, depending on the use of funds. Interest rates are typically competitive, depending on what kind of loan products you're comparing it to.
Another popular option is the SBA 504 loan, which is designed for major fixed asset purchases like real estate or large equipment. These loans are typically structured with a partnership between a traditional lender and a Certified Development Company (CDC).
These programs were designed to support small businesses that might otherwise struggle to secure conventional financing, and they continue to serve that role today.
Is an SBA Loan Right for You?
So, is an SBA loan right for you? Here are a few signs it might be:
You're investing in growth but need longer repayment terms.
You’ve been turned down by traditional banks due to lack of collateral or short operating history.
You are either profitable enough to service debt, or have strong enough assets to secure it.
You're looking for a loan with lower down payments and reasonable interest rates.
Like all capital, SBA loans come with paperwork and patience. The application process can be lengthy and detailed. And it's important to call out that SBA loans require a personal guarantee. What is that? Essentially, you're personally on the hook for the loan, even if the business fails or shuts down, or struggles to make its payment. So it's a serious commitment.
But for many Utah entrepreneurs, SBA loans are key to accessing affordable, long-term capital.
At Durable, we regularly hear from founders who’ve used SBA financing to level up — from acquiring new locations to smoothing out cash flow to refinancing more expensive debt options.
If you’re considering an SBA loan, reach out. We’re happy to connect you with peers who’ve been through the process and local lenders who know how to make it happen.
📚 Additional Resources
National Resources:
SBA Loans — Funding Programs
Durable Finance, one of Durable's sister companies, is a fractional CFO and accounting firm that regularly helps clients navigate SBA financing and can introduce you to trusted local lenders.
Utah-Specific Resources:
Beyond online resources, we believe the best way to learn is through real conversation with people who’ve done it before.
That’s why we’re bringing together some of the most experienced voices in SBA lending for a candid, no-fluff discussion. It’s part of our mission at Durable — to make business ownership less isolating and more informed by connecting you with the right people at the right moment.
📅 A Fireside Chat with Experts
Wednesday, October 29, 2025 | 7:00–9:00 PM
SLX HAVN — 470 West 200 North, Salt Lake City, UT
Securing capital is one of the most intimidating parts of starting, buying, or growing a business. For many entrepreneurs, SBA loans are a powerful but often misunderstood tool.
Moderated by Chase Murdock of Decada Group and Durable, panelists include:
John Gygi, District Counsel at U.S. SBA
Matthias Smith, CEO of Pioneer Capital
Heather Johnson, Portfolio Manager at Brighton Bank
Whether you’re exploring your first loan or scaling through acquisition, this event will help you cut through the noise and move forward with confidence.
Learn more and RSVP here.