Loans, guarantees and microfinance
50 answers. Written by the celerfunding.com editorial team from official sources. Each answer shows where it applies and when its sources were read.
How does the Canada Small Business Financing Program work?
It is a federal program under which banks, credit unions and caisses populaires issue term loans and working-capital lines of credit to eligible small businesses. You apply to the lender, and the lender decides.
You present a business plan to the financial institution. Key tests include offering products or services to the public, carrying on business in Canada, and estimated gross annual revenue of $10 million or less. Farming businesses, holding companies, trusts, donation-only entities and rental-only real-estate purchasers are excluded. Rules also cover eligible asset and cost types and repayment capacity.
A lender taking part in the program is not obliged to approve any request.
Before you apply, read the program guidelines and ask the lender how it applies them to your case.
This is general information, not an eligibility decision.
Next: Canada funding resources
Sources (read 2026-10-31): Borrower application route; CSBFP; ISED guidelines, sections 2.2–2.3
What can an SBA microloan be used for, and who do I apply to?
SBA microloans go up to $50,000 and are made by SBA-approved nonprofit intermediary lenders, not by SBA directly. The intermediary makes the credit decision and sets terms.
They can pay for working capital, inventory, supplies, furniture and equipment. They cannot be used for real estate or to repay existing debt.
They are open to small businesses and certain nonprofit childcare centers. Because service areas differ, find an intermediary that serves your location.
The SBA page's general eligibility wording refers to operating for profit, so a nonprofit childcare center should confirm with the intermediary.
Nothing here predicts approval. A sensible next step is to open SBA's microloan page, find a local intermediary, and ask about its requirements and terms.
Next: SBA microloans
Sources (read 2026-10-31): microloans
What is an SBA 7(a) loan and does SBA lend the money?
An SBA 7(a) loan is a loan from a participating lender that SBA partly guarantees. SBA does not lend directly.
As of 2026-11-01, SBA's page says it provides a loan guarantee to lenders, and that borrowers apply through a local lender and work with that lender, not SBA. The guarantee reduces the lender's risk if the loan is not repaid, but you remain responsible for repaying the loan.
SBA lists the maximum 7(a) loan at $5 million. The lender decides whether to approve you and on what terms, within SBA limits.
To start, SBA's Lender Match tool connects businesses with participating SBA lenders.
This is general information, not an offer or a promise of approval. CELER is not a lender or an SBA partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: What can I use an SBA 7(a) loan for?
Sources (read 2026-11-01): SBA lending
What can I use an SBA 7(a) loan for?
7(a) proceeds can cover a wide range of business purposes. As of 2026-11-01, SBA lists these uses: buying, refinancing or improving real estate and buildings; short and long-term working capital; refinancing existing business debt; buying and installing machinery and equipment; buying furniture, fixtures and supplies; and complete or partial changes of ownership. Loans can combine several purposes.
SBA's page also refers to AI-related expenses within equipment. The lender must still agree that your use fits the program and your repayment ability.
Some uses and businesses are excluded, so ask the lender to confirm in writing before you rely on a use.
The borrower must be an operating for-profit business located in the US that meets SBA size standards and is creditworthy.
Check SBA's page for changes and talk to a participating lender about your purpose.
Next: SBA 7(a) loans
Related: What is an SBA 7(a) loan and does SBA lend the money?
Sources (read 2026-11-01): SBA lending
Who is eligible for an SBA 7(a) loan?
You must be an operating, for-profit business located in the US that meets SBA size requirements and is not an ineligible business type. The SBA page also says you must be unable to get the credit you want on reasonable terms from non-federal, non-state and non-local sources, and be creditworthy with a reasonable ability to repay.
That last point is a lender judgment. Lenders look at your finances and repayment ability, so SBA eligibility does not mean approval.
SBA rules on ownership and citizenship have been updated at times, and the page version read here does not set them out. Ask your lender to confirm the current rules for your owners.
Start with SBA's Lender Match, then ask a lender what documents it needs.
This is general information and not an eligibility decision. As of 2026-11-01.
Next: SBA 7(a) loans
Related: What is an SBA 7(a) loan and does SBA lend the money?
Sources (read 2026-11-01): SBA lending
How much of an SBA 7(a) loan does SBA guarantee?
It depends on the loan type and size. As of 2026-11-01, SBA's lender page says the standard 7(a) guarantee is 85% for loans up to $150,000 and 75% above $150,000. SBA Express is 50%. Export Express is 90% for loans of $350,000 or less and 75% above that, and export working capital loans are 90%.
The guarantee is a protection for the lender, not for you. If the business does not repay, you can still be pursued for the debt according to your loan documents.
These figures can change, so use SBA's current page and your lender's terms.
Ask the lender which 7(a) variant it is offering and what that means for your rate, fees and collateral.
This is information only and not a quote or approval.
Next: SBA 7(a) terms
Related: What is an SBA 7(a) loan and does SBA lend the money?
Sources (read 2026-11-01): SBA: 7(a) loan terms, conditions and eligibility (lender page)
What is the maximum interest rate on an SBA 7(a) loan?
SBA caps the rate lenders can charge, but the actual rate is negotiated. As of 2026-11-01, the SBA lender page shows these maximums for variable-rate 7(a) loans, added to a base rate: up to $50,000, base plus 6.5%; $50,001 to $250,000, base plus 6.0%; $250,001 to $350,000, base plus 4.5%; over $350,000, base plus 3.0%.
Fixed-rate maximums are published separately by SBA. A lender can charge less than the cap.
Because the base rate moves, the all-in number changes over time. Ask for the full rate, all fees and the annual percentage cost in writing and compare at least two offers.
SBA Microloans use a different formula based on the intermediary's rate.
This is general information, not a quote.
Next: SBA 7(a) terms
Related: How much of an SBA 7(a) loan does SBA guarantee?
Sources (read 2026-11-01): SBA: 7(a) loan terms, conditions and eligibility (lender page)
Does an SBA 7(a) loan require collateral?
Often, but not for the smallest loans. As of 2026-11-01, SBA's lender page says standard 7(a) loans are fully secured when the lender holds security interests in the assets acquired or improved and available fixed assets, up to the loan amount.
For 7(a) Small, no collateral is required for loans of $50,000 or less. For $50,001 to $500,000, the lender follows its own collateral policy, but cannot decline solely for inadequate collateral. SBA Express has no collateral requirement up to $50,000, and above that the lender's policy applies with the same rule.
The page read here does not cover personal guarantees, so ask your lender what guarantees it will require from owners.
Collateral rules differ by loan type, so confirm in writing which one you are being offered.
This is not a promise of approval.
Next: SBA 7(a) terms
Related: What is an SBA 7(a) loan and does SBA lend the money?
Sources (read 2026-11-01): SBA: 7(a) loan terms, conditions and eligibility (lender page)
How long can I take to repay an SBA 7(a) loan?
Repayment terms are set to fit your ability to repay, and are generally 10 years or less, up to 25 years including extensions for real estate. That is from SBA's lender page as of 2026-11-01.
Other terms listed there include up to 10 years for SBA Express revolving lines and a maximum of 60 months for the 7(a) Working Capital Pilot, per SBA's 7(a) page.
A longer term lowers the payment but can increase total interest, so ask for an amortization schedule.
The actual term you get is agreed with the lender and depends on the use of funds and the business.
This is general information and not an offer.
Next: SBA 7(a) terms
Related: How long can I take to repay an SBA 7(a) loan?
Sources (read 2026-11-01): SBA: 7(a) loan terms, conditions and eligibility (lender page); SBA lending
Is there a prepayment penalty on an SBA 7(a) loan?
Only on longer loans, and only for substantial early payoffs. As of 2026-11-01, SBA's lender page says the penalty applies to 7(a) loans with maturity of 15 years or more, and only if you prepay 25% or more of the balance within the first three years.
The amount is 5% of the prepayment in year one, 3% in year two and 1% in year three.
Shorter loans are not covered by that rule. Your loan documents control, so read the prepayment clause before you sign and ask the lender in writing.
If you plan to sell or refinance, factor the possible cost in.
This is general information, not advice on a specific loan.
Next: SBA 7(a) terms
Related: How long can I take to repay an SBA 7(a) loan?
Sources (read 2026-11-01): SBA: 7(a) loan terms, conditions and eligibility (lender page)
Who pays the SBA guarantee fee on a 7(a) loan?
The lender pays the upfront guarantee fee to SBA but may pass it on to you. As of 2026-11-01, SBA's lender page says the lender's annual service fee cannot be charged to the borrower.
The page does not give the fee amounts. It says SBA publishes them each fiscal year in an Information Notice, so check SBA's current notice or ask your lender for the exact figure in dollars.
Other fees may apply under your loan documents. Ask the lender for a written list of every fee, when each is due and whether it can be financed.
Compare the total cost across offers, not only the headline rate.
This is general information and not a quote.
Next: SBA 7(a) terms
Related: What is the maximum interest rate on an SBA 7(a) loan?
Sources (read 2026-11-01): SBA: 7(a) loan terms, conditions and eligibility (lender page)
Can I still apply for a Paycheck Protection Program loan?
No. SBA says the PPP ended on May 31, 2021, so new PPP loans are no longer available. This is as of 2026-11-01.
Existing borrowers can still deal with forgiveness. Since March 13, 2024, all borrowers can use SBA's Direct Forgiveness Portal or work through their lender. SBA says borrowers can apply up to five years from the date SBA issued the loan number, and should apply within 10 months after the covered period ends or loan payments resume.
Borrowers who miss the conditions may be treated as in default and referred for Treasury collection steps. For loan status, contact your lender.
Be wary of any offer of a new PPP loan, which would not be an SBA program.
This is information, not advice on your loan.
Next: SBA COVID relief
Related: What can I do if I have a COVID EIDL loan and cannot make payments?
Sources (read 2026-11-01): SBA COVID relief
What can I do if I have a COVID EIDL loan and cannot make payments?
COVID EIDL is in servicing, and SBA offers a hardship option for eligible borrowers. As of 2026-11-01, SBA says eligible borrowers can cut payments by 50% for six months, once every five years, and interest still accrues. For loans over $200,000 you request help by emailing the SBA servicing address on its page.
Eligibility conditions on the page include that the loan is current or less than 90 days past due, the business is operating, no owner is in active bankruptcy and the hardship is temporary.
SBA says loans can be referred to Treasury offset after 120 days of delinquency. Manage the account through SBA's loan portal, and note that paper checks are no longer accepted as of October 1, 2025.
SBA's page does not say whether new COVID EIDL applications are accepted, so check with SBA.
Contact SBA early.
Next: SBA COVID relief
Related: Can I still apply for a Paycheck Protection Program loan?
Sources (read 2026-11-01): SBA COVID relief
Are SBA disaster loans grants, and who can apply?
SBA disaster loans are low-interest loans, not grants. As of 2026-11-01, SBA says businesses of all sizes, homeowners, renters and private nonprofit organizations may apply, though some programs are narrower. For example, Economic Injury Disaster Loans are limited to small businesses, and the business must be located in a declared disaster area.
SBA says loans can repair or replace damaged property for losses not covered by insurance, or provide working capital to businesses with substantial economic injury.
You can apply online at SBA's disaster loan site or by phone. Check SBA's page for current declarations before you apply.
Beware of anyone who contacts you offering disaster grants for a fee.
This is information only.
Next: SBA disaster assistance
Sources (read 2026-11-01): SBA disasters
What is the State Small Business Credit Initiative (SSBCI) and do I apply to Treasury?
SSBCI is a Treasury program that funds state, territory and Tribal programs, so you generally look to your jurisdiction. As of 2026-11-01, Treasury describes it as a nearly $10 billion program supporting small businesses with capital and technical assistance.
Treasury provides funds to states, the District of Columbia, territories and Tribal governments, which create their own programs. Types may include equity or venture capital, loan participation, loan guarantees, collateral support and capital access programs.
The page does not say businesses apply to Treasury. It points to jurisdiction-run programs and a list of SSBCI Capital Programs and contacts.
Search for your state or territory program and read its eligibility rules.
This is general information, not a ruling on your eligibility.
Next: Treasury SSBCI
Sources (read 2026-11-01): Treasury SSBCI
Who can borrow under the Canada Small Business Financing Program?
Most start-ups and existing small businesses with gross annual revenues of $10 million or less. The ISED FAQ says for-profit, not-for-profit and charitable businesses can qualify, including corporations, sole proprietors, partnerships and cooperatives. Farming businesses are excluded.
The government does not make the loan. Banks, credit unions, caisses populaires and other participating institutions do, and each decides whether to approve you.
Submit a business proposal directly to a participating lender; ISED does not accept or process applications.
This is general information as of 2026-11-01, not an eligibility decision or an offer. Ask the lender about security and personal guarantees, which the page read does not cover.
Next: Canada funding resources
Related: How does the Canada Small Business Financing Program work?
Sources (read 2026-11-01): CSBFP
Can a CSBFP loan be used to buy an existing business?
Sometimes, but only for assets, not shares. The ISED FAQ says purchasing an existing business's eligible assets may qualify, and financing is limited to the lesser of the purchase cost or the appraised value of those assets.
Share purchases are not eligible, and neither are assets acquired by a holding company.
The lender decides whether to approve the loan and what it needs, such as an appraisal.
This is information as of 2026-11-01. For deal structures, speak to a lender and a professional adviser.
Next: Canada funding resources
Sources (read 2026-11-01): CSBFP
What fees does the Canada Small Business Financing Program charge?
There is a government registration fee of 2% of the loan amount, which can be financed. As of 2026-11-01, the ISED FAQ also says lender set-up, renewal and similar fees match those on conventional loans of the same size. Those lender fees are paid directly to the lender and cannot be financed.
The FAQ lists maximum interest rates: for variable-rate term loans, the lender's prime plus 3%; for fixed-rate term loans, the lender's single-family residential mortgage rate plus 3%; and for lines of credit, prime plus 5%.
Ask your lender for a written cost breakdown before you accept.
This is general information, not a quote.
Next: Canada funding resources
Sources (read 2026-11-01): CSBFP
Is BDC a bank, and does it give grants?
BDC is a Crown corporation and development bank that focuses only on entrepreneurs, and it offers repayable financing, not grants. That is from BDC's financing FAQ as of 2026-11-01. It also provides advisory services.
Because BDC loans are repayable, you need to show you can repay. BDC says approval is not guaranteed and every application goes through due diligence.
Check BDC's site for current products and the terms for your situation.
This is general information and not an offer. CELER is not affiliated with BDC.
Next: Canada funding resources
Related: Can a start-up get a BDC loan?
Sources (read 2026-11-01): BDC financing FAQ
Can a start-up get a BDC loan?
Only if it has some operating history. BDC's FAQ says you need to be based in Canada, have operated for at least 12 months and have a good track record, with about 12 to 24 months of revenue-generating operations depending on loan type. If you have under 12 months, BDC suggests contacting one of its partners.
It also looks for a profitable business and shareholders of legal age with good credit history. Approval is not guaranteed.
Loans start at $10,000 and can reach several million dollars for large growth projects. Online applications are for amounts over $100,000.
This is as of 2026-11-01 and may change; check BDC directly.
Next: Canada funding resources
Related: Is BDC a bank, and does it give grants?
Sources (read 2026-11-01): BDC financing FAQ
What security does a BDC loan require?
It depends on the loan type. BDC's FAQ says no down payment is required for a business loan, though some purchases, such as real estate, may need one. Collateral depends on the loan type, and some loans may require a personal or corporate guarantee instead of assets.
The FAQ does not mention fees, so ask a BDC advisor directly. It describes some loans as non-blended, with fixed monthly principal payments and interest on the declining balance, at a floating base rate plus a variance based on your profile.
Get security terms in writing before signing, and understand what a personal guarantee exposes.
This is general information as of 2026-11-01.
Next: Canada funding resources
Related: Is BDC a bank, and does it give grants?
Sources (read 2026-11-01): BDC financing FAQ
What is the Women Entrepreneurship Loan Fund and how do I apply?
It offers loans of up to $50,000 to women entrepreneurs, delivered by organizations selected by the Government of Canada, not directly by the government. As of 2026-11-01, ISED lists the delivery organizations as WEOC, NACCA, Nventure and Evol, with regional providers by province or territory.
You check whether your business qualifies and apply through a delivery organization's website. The page does not describe the application steps in detail and says the listed organizations are currently accepting applications.
These are loans, which must be repaid.
This is not an eligibility decision.
Next: Canada funding resources
Sources (read 2026-11-01): ISED WELF
Should I pay someone upfront to help me get a government loan?
Be very cautious. USAGov warns that if someone asks for your personal information or money to get a grant or loan, it is probably a scam. USAGov also says each program has its own eligibility rules, process and deadlines, and you apply by filling out forms, usually with proof of income and identification.
Legitimate help, such as a licensed adviser, should disclose fees in writing, and rules on brokers and agents differ by country and program.
Never pay for a promise of approval. Official government sites do not charge you to apply.
CELER is a referral site and is not a lender or a government agency. This record is held for legal review.
Next: CELER funding review
Sources (read 2026-11-01): USAGov guidance
What credit score do I need for an SBA loan?
SBA's public pages do not set one minimum credit score for a 7(a) loan; the lender looks at your credit as part of deciding whether you are creditworthy.
As of 2026-11-01, SBA's rules say the lender, CDC or SBA may consider the credit score or credit history of the applicant, its associates and any guarantors, alongside cash flow and collateral. SBA's 7(a) page also says a business must be creditworthy and show a reasonable ability to repay. SBA's funding guide says that for a new business, eligibility is typically based on the owner's personal credit score, and that poor credit history is a common reason small business loan applications are declined.
Lenders can apply their own stricter standards, so a number that works at one lender may not work at another. Before you apply, check your credit reports for errors and compare lenders, for example through SBA's Lender Match tool.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: Who is eligible for an SBA 7(a) loan?; Can a start-up with no revenue get an SBA 7(a) loan?
Sources (read 2026-11-01): 13 CFR 120.150 (SBA lending criteria); 7(a) loans (SBA); SBA funding guide; SBA lending
Do I have to personally guarantee an SBA loan?
Generally yes: SBA's regulation says owners of 20 percent or more of the business must normally guarantee the loan.
As of 2026-11-01, 13 CFR 120.160 lists personal guarantees among the loan conditions SBA normally requires. The same section says SBA, or a lender using delegated authority, may also require other people or entities to give full or limited guarantees, whatever their ownership share. So a smaller owner, a spouse or a related company could be asked to sign, depending on the lender and the deal.
A personal guarantee means you can be held personally responsible if the business cannot repay. Read the guarantee document closely and ask the lender in writing which individuals must sign and whether any limits apply.
SBA's guarantee protects the lender, not you.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: Does an SBA 7(a) loan require collateral?; How much of an SBA 7(a) loan does SBA guarantee?
Sources (read 2026-11-01): 13 CFR 120.160 (loan conditions)
Can a start-up with no revenue get an SBA 7(a) loan?
A start-up can be considered, but the lender must still be satisfied that you are creditworthy and can repay, and no revenue makes that harder.
As of 2026-11-01, SBA lists starting a business among the uses of 7(a) proceeds, and requires borrowers to be creditworthy and to show a reasonable ability to repay. SBA's funding guide says a new business is typically judged on the owner's personal credit score. SBA's lending criteria also mention cash flow, equity and collateral as factors a reviewer may weigh.
The separate 7(a) Working Capital Pilot is different: SBA says it needs at least a year of operating history, so it is not a route for a brand-new business.
Ask lenders what they need from a start-up before you apply.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: What credit score do I need for an SBA loan?; Can a business that earns income from legal gambling get an SBA loan?
Sources (read 2026-11-01): SBA 7(a) terms, conditions and eligibility; 7(a) loans (SBA); SBA funding guide; 13 CFR 120.150 (SBA lending criteria)
What is the USDA Business and Industry loan guarantee?
The Business and Industry (B&I) program is a USDA Rural Development loan guarantee for rural business projects, made through a lender rather than directly to you.
As of 2026-11-01, the program's regulation (7 CFR part 5001) says it is authorized under section 310B of the Consolidated Farm and Rural Development Act and run by USDA's Rural Business-Cooperative Service. Lenders originate and service the guaranteed loans. The project must be in a rural area, defined as an area outside a city or town of more than 50,000 people and its adjoining urbanized area, with special rules for some territories.
Eligible purposes include land, buildings, equipment, working capital, business acquisitions and start-ups where jobs are created or saved, and certain refinancing. A guarantee is a loan product, not a grant, and you still repay.
Talk to a lender and your USDA Rural Development state office. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: USDA business programs
Related: Can a USDA Business and Industry guaranteed loan refinance existing debt?; What is an SBA 7(a) loan and does SBA lend the money?
Sources (read 2026-11-01): 7 CFR part 5001 (Business and Industry guaranteed loans)
What is Futurpreneur and who can borrow from it?
Futurpreneur is a Canadian non-profit that offers start-up financing and mentoring to younger entrepreneurs; it is not a government grant.
As of 2026-11-01, its site says applicants must be 18 to 39 at the time of application, be Canadian citizens or permanent residents living in Canada, and own more than 50 percent of a business that is not yet operating or has operated full time for 24 months or less (Side Hustle excepted). Futurpreneur says financing is up to $75,000, loan proceeds cannot refinance existing debt, and applicants must authorize a personal credit check. It also lists a complete business plan and cash flow, taxes up to date, and set waiting periods after a bankruptcy or consumer proposal.
Program streams for under-30, Black and Indigenous founders have their own pages and criteria, and the site mentions BDC and RBC as partners.
Check Futurpreneur's pages for current terms. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: Canada funding resources
Related: Can a start-up get a BDC loan?; What is the Women Entrepreneurship Loan Fund and how do I apply?
Sources (read 2026-11-01): Futurpreneur eligibility; Futurpreneur Canada home page
Do CSBFP lenders require personal guarantees or security?
Lenders must take security on the assets financed, and they may also take personal guarantees up to a cap in the regulations.
As of 2026-11-01, the Canada Small Business Financing Regulations require first-ranking security in the assets being financed for the main loan types (with equal ranking allowed where another source also funds the asset). Lenders may also take additional security over other business assets.
Personal guarantees or suretyships must be unsecured, and for loans made after March 31, 2014 their total cannot exceed the original loan amount, plus judgment interest, costs and legal fees. Where there are several guarantees, each must say the combined liability cannot go above that cap. Corporate guarantees may be secured or unsecured.
The lender decides what it asks for within these limits, so ask for the security and guarantee terms in writing before you sign.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: Canada Small Business Financing Program
Related: How does the Canada Small Business Financing Program work?; Who can borrow under the Canada Small Business Financing Program?
Sources (read 2026-11-01): Canada Small Business Financing Regulations (SOR/99-141)
Does SBA require hazard insurance on a 7(a) loan?
For larger loans, yes: SBA's regulation requires hazard insurance on all collateral for 7(a) loans over $500,000.
As of 2026-11-01, 13 CFR 120.160 requires hazard insurance on all collateral for 7(a) loans and 504 projects greater than $500,000. For smaller loans, the lender may still ask for insurance under its own policies. The same section says SBA may require appraisals of the applicant's and principals' assets, a survey or a feasibility study.
In practice, the lender will tell you what coverage it needs. Get quotes from your insurance broker early, because a lack of proof of insurance can delay closing. Premiums are your cost as the borrower.
This is a general summary of one regulation. Your lender's loan authorization sets the exact conditions for your loan.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: Does an SBA 7(a) loan require collateral?; Do I have to personally guarantee an SBA loan?
Sources (read 2026-11-01): 13 CFR 120.160 (loan conditions)
Is there a cap on late payment fees on an SBA loan?
Yes: SBA's regulation caps a lender's late payment fee at 5 percent of the regular loan payment.
As of 2026-11-01, 13 CFR 120.221 lists the only fees and expenses a lender may collect from an applicant or borrower unless SBA loan program requirements allow otherwise. Besides the late fee cap, it permits reasonable packaging and other service fees, necessary out-of-pocket costs such as filing fees, and hourly legal charges. Extraordinary servicing fees need SBA's prior written approval and cannot exceed 2 percent a year of the balance concerned.
So a late charge of, say, 5 percent of a $2,000 monthly payment would be at most $100. Your note and loan authorization show what applies to your loan. If a fee looks wrong, raise it with the lender first and then with SBA.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: Who pays the SBA guarantee fee on a 7(a) loan?; Is there a limit on fees a loan packager or broker can charge for an SBA loan?
Sources (read 2026-11-01): 13 CFR 120.221 (fees Lender may collect from Applicant)
What are the current 7(a) upfront guarantee fee amounts?
The exact upfront fee changes each fiscal year, so check SBA's current notice; the regulation sets ceilings.
As of 2026-11-01, SBA's lender page says it publishes the Upfront Fee and the lender's Annual Service Fee each fiscal year through an information notice. Lenders may pass the Upfront Fee to borrowers, but the Annual Service Fee cannot be charged to the borrower. That page gave no dollar or percentage amounts, and none are stated here.
For context, 13 CFR 120.220 caps the guaranty fee on the guaranteed portion of loans over 12 months at up to 2 percent for loans of $150,000 or less, up to 3 percent from $150,000 to $700,000, and up to 3.5 percent above $700,000, plus an extra 0.25 percent above $1,000,000.
Ask your lender for the fee on your specific loan in writing.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: Who pays the SBA guarantee fee on a 7(a) loan?
Sources (read 2026-11-01): SBA 7(a) terms, conditions and eligibility; 13 CFR 120.220 (fees that Lender pays SBA)
Is there a limit on fees a loan packager or broker can charge for an SBA loan?
There is no fixed dollar cap in the rules I read, but SBA can force a packager or agent to cut and refund a fee it finds unreasonable.
As of 2026-11-01, 13 CFR 103.5 says applicants, agents and packagers must sign and give SBA a compensation agreement. If SBA finds compensation unreasonable, the agent or packager must reduce the charge, refund any excess to the applicant and stop collecting it. Lender-side service providers cannot charge their pay directly to the applicant or borrower.
Separately, 13 CFR 120.221 lets a lender charge reasonable packaging fees consistent with what similar lenders charge locally, and requires the lender to tell you in writing that unwanted services are optional.
Get any fee agreement in writing, ask what exactly you are paying for, and report concerns to SBA. See also the earlier answer on paying upfront for help.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: Should I pay someone upfront to help me get a government loan?; Is there a cap on late payment fees on an SBA loan?
Sources (read 2026-11-01): 13 CFR 103.5 (agent and packager compensation); 13 CFR 120.221 (fees Lender may collect from Applicant)
Can a passive real estate landlord or a business located abroad get an SBA loan?
Generally not: SBA's rules list passive businesses owned by developers or landlords, and businesses located in a foreign country, as ineligible.
As of 2026-11-01, 13 CFR 120.110(c) makes ineligible passive businesses owned by developers or landlords that do not actively use the assets, except Eligible Passive Companies under section 120.111, which I did not read. Section 120.110(e) makes ineligible businesses located in a foreign country. The same list also covers financial businesses that mainly lend, life insurers, pyramid plans, private clubs and government-owned entities.
So a company that only holds property and rents it out may not qualify, while a structure where an operating business uses the property can be treated differently. Structure and tax implications matter, so speak to an accountant or lawyer and ask your lender early.
This is general information, not an offer or a promise of approval. CELER is not a lender, an SBA partner or an adviser, and you can send CELER an enquiry if you want help understanding the options.
Next: US funding resources
Related: Who is eligible for an SBA 7(a) loan?
Sources (read 2026-11-01): 13 CFR 120.110 (ineligible businesses)
Can a business that earns income from legal gambling get an SBA loan?
Not if gambling is a large share of revenue: SBA's rules make ineligible a business that earns more than one-third of its gross annual revenue from legal gambling.
As of 2026-11-01, 13 CFR 120.110(g) says so. The same section also makes ineligible businesses engaged in any illegal activity under federal, state or local law, and businesses presenting prurient sexual live performances or earning more than a de minimis amount from prurient sexual products, services or displays.
The one-third test is about gross annual revenue, so a business with a small gambling side line, such as a venue with a few machines, is a question for the lender to look at. I did not read SBA's detailed guidance on how revenue is counted.
Ask the lender early how it applies these limits to your revenue mix.
This is general information, not an offer or a promise of approval. CELER is not a lender, an SBA partner or an adviser, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: Can a passive real estate landlord or a business located abroad get an SBA loan?
Sources (read 2026-11-01): 13 CFR 120.110 (ineligible businesses)
How much can I borrow under the Canada Small Business Financing Program, and how much can go to working capital?
The regulation caps outstanding CSBFP borrowing at $1,000,000 per borrower, with smaller limits for some costs.
As of 2026-11-01, the Canada Small Business Financing Regulations say that for loans in paragraphs 5(1)(a) to (d), the outstanding loan amount for the borrower cannot exceed $1,000,000. Of that, no more than $500,000 may be for purposes other than real property, and no more than $150,000 of that may be for intangible assets and working capital. For lines of credit under paragraph 5(1)(e), no more than $150,000 may be for working capital costs.
So the headline figure is not all available for working capital. The lender decides whether and how much to lend. Check the current ISED program page for any change.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: Canada Small Business Financing Program
Related: How does the Canada Small Business Financing Program work?; Do CSBFP lenders require personal guarantees or security?
Sources (read 2026-11-01): Canada Small Business Financing Regulations (SOR/99-141)
Can a USDA Business and Industry guaranteed loan refinance existing debt?
Sometimes: the B&I regulation allows refinancing in set conditions, but it is not a general debt-consolidation tool.
As of 2026-11-01, 7 CFR 5001.102(d) allows refinancing of debt owed to another creditor with no percentage cap when a new lender is involved. Refinancing debt owed to the applicant lender is capped at 50 percent of total use of funds, must have been current for the past six months, and must give better rates or terms. For existing businesses where refinancing is the main purpose, the borrower must show historical debt service coverage of at least 1.1 times. Refinancing existing lines of credit is also an eligible purpose.
These are summary points from part of the regulation; I did not read every section. Ask your lender and your USDA Rural Development office how they apply to your case.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: USDA business programs
Related: What is the USDA Business and Industry loan guarantee?
Sources (read 2026-11-01): 7 CFR part 5001 (Business and Industry guaranteed loans)
Can an owner or associate with a criminal charge or incarceration block an SBA loan?
It can: SBA's rules make a business ineligible if an associate is incarcerated or under certain indictments.
As of 2026-11-01, 13 CFR 120.110(n) lists as ineligible a business with an associate who is incarcerated, under indictment for a felony, or under indictment for financial misconduct or false statements. The same section also makes ineligible businesses owned or controlled by people who previously caused a loss to the government on a federal loan, unless waived.
The rule does not say any past conviction automatically bars you, and the lender and SBA apply more detailed forms and procedures than the regulation. Answer every question on the application truthfully, because false answers carry their own serious consequences.
If this affects you, speak to a lawyer and the lender before applying.
This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA 7(a) loans
Related: Who is eligible for an SBA 7(a) loan?; Can a passive real estate landlord or a business located abroad get an SBA loan?
Sources (read 2026-11-01): 13 CFR 120.110 (ineligible businesses)
Can the interest rate on my SBA 7(a) loan change after closing?
Yes, if your lender uses a variable rate. Ask whether yours is fixed or variable.
As of 2026-11-01, 13 CFR 120.214 lets lenders use variable rates on SBA-guaranteed loans. The first change can come on the first day of the month after the first disbursement, and after that no more often than monthly. The rate moves with a base rate, which is the prime rate or SBA's Optional Peg Rate, and SBA may allow other widely used base rates and will publish notice. If the loan has a ceiling and a floor, the ceiling cannot sit farther above your starting rate than the floor sits below it. Payments may be recomputed as rates move, but SBA does not allow balloon payments.
The maximum spread over the base rate depends on loan size and is covered in a separate answer.
Ask the lender for the base rate, reset schedule, any floor or ceiling and a sample payment if rates rise. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA loan programs
Related: What is the maximum interest rate on an SBA 7(a) loan?; How long can I take to repay an SBA 7(a) loan?
Sources (read 2026-11-01): 13 CFR 120.214 (conditions for variable interest rates)
Can an SBA 7(a) loan pay my back taxes or pay money out to me or my partners?
Generally no. SBA's rules list uses of 7(a) proceeds that are not allowed, and these two are on the list.
As of 2026-11-01, 13 CFR 120.130 says loan proceeds may not pay past-due federal, state or local payroll taxes, sales taxes or similar taxes that you must collect and hold in trust for a government. Proceeds also cannot pay or lend money to Associates of the applicant, except ordinary compensation for services rendered or payments that facilitate a change of ownership allowed by SBA's rules. The same section bars refinancing debt owed to certain investment companies, floor plan financing or revolving credit outside the specific programs that allow it, property bought mainly for sale, lease or investment (with exceptions), and any purpose that does not benefit the small business. It also covers replacing funds already spent on those purposes.
Tell your lender your intended uses early and ask for written confirmation. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA loan programs
Related: What can I use an SBA 7(a) loan for?; Does SBA require hazard insurance on a 7(a) loan?
Sources (read 2026-11-01): 13 CFR 120.130 (restrictions on uses of proceeds)
Is there a limit on total SBA loan guarantees if I have more than one SBA loan?
Yes. SBA caps the total guaranty to one borrower, and affiliated companies count together.
As of 2026-11-01, 13 CFR 120.151 says the SBA portions of all loans to a single borrower, including the borrower's affiliates as defined in 13 CFR 121.301(f), must not exceed a guaranty amount of $3,750,000, except as the law separately authorizes for a specific program. The maximum amount for any one 7(a) loan is $5,000,000. For example, a 75 percent guaranty on a $5,000,000 loan is $3,750,000. A loan to an Eligible Passive Company counts against the limit of both that company and its Operating Company.
So a second loan, or a loan to a related business, can use up room under the cap. The limits apply to the SBA's guaranteed share, and the loan itself can also have separate program limits.
Before applying for another SBA loan, list every existing SBA loan and affiliate and ask your lender to check the headroom. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA loan programs
Related: How much of an SBA 7(a) loan does SBA guarantee?; Can a passive real estate landlord or a business located abroad get an SBA loan?
Sources (read 2026-11-01): 13 CFR 120.151 (statutory limit for total loans to a Borrower)
What happens if I default on an SBA 7(a) loan?
Your lender can pursue collection and, once conditions are met, ask SBA to buy its guaranteed share. The guarantee protects the lender, not you.
As of 2026-11-01, 13 CFR 120.520 says that for loans approved on or after May 14, 2007, a lender may demand that SBA honor its guarantee when a borrower is in default on any installment for more than 60 calendar days (or less if SBA agrees) and the default is uncured, once all business personal property securing the loan has been liquidated. A lender may also ask SBA to buy a defaulted loan after a federal bankruptcy filing, once 60 days have passed since the last full installment. If you cure the default before the lender requests purchase, that right lapses.
Section 120.530 lets SBA agree to defer payments on a business loan for a stated period. These sections describe steps between lender and SBA. Your own duties sit in your note and any guarantees you signed.
Talk to the lender early and consider legal advice. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA loan programs
Related: Do I have to personally guarantee an SBA loan?; How much of an SBA 7(a) loan does SBA guarantee?
Sources (read 2026-11-01): 13 CFR 120.520 (purchase of 7(a) loan guarantees); 13 CFR 120.530 (deferment of payment); SBA: 7(a) loan terms, conditions and eligibility (lender page)
What is an SBA Preferred Lender?
A Preferred Lender is an SBA lending partner that SBA has trusted to handle loans with less SBA review.
As of 2026-11-01, 13 CFR 120.450 says that under the Preferred Lenders Program, designated lenders process, close, service and liquidate SBA-guaranteed loans with reduced documentation to, and prior approval by, SBA. Under 13 CFR 120.440, SBA decides whether to grant or renew delegated authority by looking at the lender's ability to evaluate, process, close, disburse, service and liquidate loans, its SBA performance, rule compliance, corrective actions, regulatory concerns and other risk factors. Authority runs for a limited term of up to two years, and one year or less for lenders with under three years of SBA lending. SBA's lender page says 7(a) Small and standard 7(a) loans can be processed under Preferred Lender Program authority or without delegation through SBA's processing center.
Preferred status describes how the lender may process loans. It does not decide your eligibility. Ask any lender whether it holds delegated authority. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA loan programs
Related: What is an SBA 7(a) loan and does SBA lend the money?; Who is eligible for an SBA 7(a) loan?
Sources (read 2026-11-01): 13 CFR 120.450 (Preferred Lenders Program); 13 CFR 120.440 (how a 7(a) Lender obtains delegated authority); SBA: 7(a) loan terms, conditions and eligibility (lender page)
What happens if I cannot repay a Canada Small Business Financing Program loan?
The lender must demand repayment and try to recover before it can claim from the government. Your agreement and any guarantees remain the starting point for what you owe.
As of 2026-11-01, the Canada Small Business Financing Regulations treat a borrower as in default when it fails to comply with a material condition of the loan agreement, and the outstanding amount becomes due. The lender must demand repayment within a stated period. If unpaid, it must take the measures that cut its loss, such as collecting, realizing security and guarantees, claiming on insurance, completing a compromise settlement, and suing where the likely recovery exceeds the cost. For a sole proprietor or partnership, judgments against personal assets other than the business's assets are capped at the original loan amount (for loans made after March 31, 2014) plus judgment interest and costs. The lender must file its claim for loss within 60 months of the last payment, unless extended.
If you are struggling, speak to the lender early and get legal advice. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: Canada funding resources
Related: Do CSBFP lenders require personal guarantees or security?; How does the Canada Small Business Financing Program work?
Sources (read 2026-11-01): Canada Small Business Financing Regulations (SOR/99-141)
What is the USDA Intermediary Relending Program?
It is a USDA Rural Development program that lends to local intermediaries, which re-lend to rural businesses. You borrow from the intermediary, not from USDA.
As of 2026-11-01, USDA says IRP gives 1 percent loans to intermediaries such as nonprofits, cooperatives, tribes and public agencies. The intermediary term is up to 30 years, and an intermediary's total IRP debt cannot exceed $15 million. A final borrower can be an individual or an organization if US citizens or permanent residents hold majority ownership, it owes no delinquent federal debt, it cannot get affordable commercial financing for the project, and the project is in an eligible rural area. The loan to a final borrower is the lesser of $400,000 or 50 percent of the intermediary's loan, on rates and terms the intermediary sets. Uses include start-ups, equipment, working capital and real estate.
USDA's page says the FY2027 notice is awaiting clearance under a continuing resolution. For a loan, contact your USDA state office and ask which intermediaries are lending. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: USDA Rural Development business programs
Related: What is the USDA Business and Industry loan guarantee?; What is the Rural Microentrepreneur Assistance Program?
Sources (read 2026-11-01): USDA Rural Development: Intermediary Relending Program
What is the Rural Microentrepreneur Assistance Program?
RMAP is a USDA Rural Development program that funds local microlenders. A small rural business borrows from the microlender, not USDA.
As of 2026-11-01, USDA says RMAP provides loans and grants to Microenterprise Development Organizations, which can be nonprofits, tribes or higher education institutions. USDA loans of $50,000 to $500,000 capitalize a revolving microloan fund, with total debt capped at $2.5 million, a maximum 20-year term and a two-year payment deferral. Grants of up to $100,000 a year pay for training and technical assistance and need at least 15 percent matching funds. Microloans to businesses with 10 or fewer full-time employees in an eligible rural area are up to $50,000, at a fixed rate, limited to 75 percent of project cost. Uses include working capital, refinancing, equipment and real estate improvements.
The page says the FY2027 notice is pending under a continuing resolution. Ask your USDA state office which microlenders operate near you. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: USDA Rural Development business programs
Related: What is the USDA Intermediary Relending Program?; What can an SBA microloan be used for, and who do I apply to?
Sources (read 2026-11-01): USDA Rural Development: Rural Microentrepreneur Assistance Program
Can USDA guarantee a loan for solar panels or energy-efficiency upgrades at a rural business?
Yes. USDA's Rural Energy for America Program (REAP) can guarantee lender loans for renewable energy systems and efficiency upgrades at eligible rural small businesses and agricultural producers.
As of 2026-11-01, USDA's page says guaranteed loan applications may be submitted, but it is not accepting REAP grant applications at this time. Guarantees can cover loans up to 75 percent of eligible project costs. Grants, when open, cover up to 50 percent, with combined funding up to 75 percent. The loan term cannot exceed 40 years, and interest is negotiated, fixed or variable, with variable rates adjusting no more often than quarterly. USDA lists an initial guarantee fee of 1 percent of the guaranteed amount and an annual 0.25 percent retention fee. Businesses must be in a rural area, meet SBA size standards, and owe no delinquent federal debt. Efficiency projects need an energy audit or assessment.
A guarantee is not a grant, and you still repay the loan. Ask a lender and your USDA state office. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: USDA Rural Development business programs
Related: What is the USDA Business and Industry loan guarantee?; How much of a USDA Rural Development guaranteed loan does the guarantee cover, and what fees apply?
Sources (read 2026-11-01): USDA Rural Development: Rural Energy for America Program (guaranteed loans and grants)
How long can a Canada Small Business Financing Program loan or line of credit last?
Term loans can be renewed to a total of 15 years, and lines of credit are registered in five-year blocks.
As of 2026-11-01, the Canada Small Business Financing Regulations require the loan agreement to be signed by lender and borrower and to set out the repayment terms. Term loans must be payable by instalments, with at least one principal-and-interest instalment a year and the first due within a year of the loan. The lender and borrower may amend terms or renew at the end of a term, up to an aggregate maximum of 15 years counted from the first principal-and-interest payment due date.
For a line of credit, before the first five-year period ends they may register an additional five-year term with the registration fee, convert it to a loan of up to 10 years, or repay it with a conventional loan. The same options exist before the added term ends, except another term.
The lender decides the actual term, so ask for it in writing. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: Canada funding resources
Related: How much can I borrow under the Canada Small Business Financing Program, and how much can go to working capital?; How does the Canada Small Business Financing Program work?
Sources (read 2026-11-01): Canada Small Business Financing Regulations (SOR/99-141)
How much of a USDA Rural Development guaranteed loan does the guarantee cover, and what fees apply?
The guarantee covers up to 90 percent of the lender's eligible loss, and a one-time guarantee fee applies, which the lender may pass to you.
As of 2026-11-01, 7 CFR part 5001 sets 90 percent as the maximum guarantee of eligible loss, with USDA announcing the percentage for each program every year in the Federal Register. The guarantee fee is paid once by the lender and may be passed to the borrower. Annual rates are set in the Federal Register and cannot exceed 5 percent for Business and Industry loans or 3 percent for REAP. Lenders may charge reasonable, routine fees similar to those on their other loans, plus routine prepayment and late fees if stated in the loan documents. Late fees, default charges and penalty interest are not covered by the guarantee. For B&I, a borrower's total guaranteed loans are limited to $25 million, with rare exceptions up to $40 million for certain cooperatives.
Ask your lender for a written fee list. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: USDA Rural Development business programs
Related: What is the USDA Business and Industry loan guarantee?; Can a USDA Business and Industry guaranteed loan refinance existing debt?
Sources (read 2026-11-01): 7 CFR part 5001 (Business and Industry guaranteed loans)
Does an SBA 7(a) loan have to come from a bank?
No. SBA works with several kinds of lenders, though each must be approved to make 7(a) loans.
As of 2026-11-01, SBA's lender page says banks, savings and loans, credit unions and other specialized lenders take part in the 7(a) program. It also lists Small Business Lending Companies, which it describes as non-depository institutions authorized by SBA to make 7(a) loans, and mission-oriented Community Advantage Small Business Lending Companies, which are primarily nonprofit intermediaries. To take part, a lender must have a continuing ability to evaluate, process, close, disburse, service and liquidate loans, be open to the public, keep a good character and reputation, and be supervised and examined by a state or federal regulator satisfactory to SBA, or apply as a Small Business Lending Company or Non-Federally Regulated Lender.
SBA also runs Lender Match, a referral tool for lenders and borrowers, but using it does not mean approval. Ask any lender to confirm in writing that it is an SBA 7(a) lender. This is general information, not an offer or a promise of approval. CELER is not a lender, government agency or program partner, and you can send CELER an enquiry if you want help understanding the options.
Next: SBA loan programs
Related: What is an SBA 7(a) loan and does SBA lend the money?; What is an SBA Preferred Lender?
Sources (read 2026-11-01): SBA: 7(a) loan terms, conditions and eligibility (lender page)
What CELER is and is not. celerfunding.com is operated by Celer Merchants Corporation. We are not a lender, grantmaker, government agency, investment portal or licensed adviser, and we are not an official partner of the programs mentioned here. This page is general information, not legal, tax, investment or credit advice. A CELER enquiry is not an official grant or loan application.