SBA loans come through SBA-participating lenders, Certified Development Companies or intermediary lenders, and SBA program rules apply on top of the lender's own; for 7(a) loans the SBA provides a loan guarantee to the lender. Rockstone Lending, a small-business funding broker in Yuma, Arizona, is not an SBA lender and does not arrange SBA loans. It helps owners compare other options: (928) 436-5545.
Rockstone Lending and the SBA
To be clear from the start: Rockstone Lending is a broker that connects businesses with lending partners for working capital, term loans, lines of credit, equipment financing and merchant cash advances. We are not an SBA lender, we are not affiliated with or endorsed by the SBA, and we do not arrange SBA loans.
This page is here because many owners ask how SBA loans compare with other funding, and the comparison is useful whichever route you take. If you want to pursue an SBA loan, the SBA's own website, an SBA-participating lender and the Arizona Western College SBDC are the right places to go. The SBA describes a tool on its site, Lender Match, for connecting with SBA-approved lenders.
How SBA loans work
For its main loan programs, the SBA works through lenders rather than lending directly. In the SBA's words, the 7(a) program "provides a loan guarantee to lenders," and the SBA tells borrowers, "You will always work directly with your lender and not with SBA." You apply through a lender, the lender evaluates the application, and SBA program rules apply on top of the lender's own requirements.
Program rules, eligibility and limits are set by the SBA and can change, so check sba.gov for current details rather than relying on summaries, including this one.
The main SBA loan programs
7(a) loans
The SBA calls 7(a) its primary business loan program. The uses it lists include short- and long-term working capital, refinancing current business debt, buying machinery and equipment, acquiring or improving real estate, furniture, fixtures and supplies, and changes of ownership.
504 loans
The SBA describes 504 loans as long-term, fixed-rate financing available through Certified Development Companies (CDCs), which originate them together with a senior lender. They are for major fixed assets: buying, building or renovating buildings or land, and long-term machinery and equipment. The SBA states they cannot be used for working capital or inventory.
Microloans
The SBA's microloan program provides smaller loans to small businesses, and certain nonprofit childcare centers, through intermediary lenders. They are often discussed as an option for early-stage businesses; see the SBA's loan programs page for current limits and how to find an intermediary.
Where Arizona owners can learn more
- SBA Arizona District Office: no SBA office is listed in Yuma. The Arizona District Office at 4041 N. Central Avenue, Suite 1000, Phoenix, lists Yuma County in its service area and says it helps with SBA services including funding programs, counseling, federal contracting certifications and disaster recovery.
- Arizona Western College SBDC: the Small Business Development Center in Yuma, (928) 317-6151, offers no-fee advising on financing and capital needs. It is a practical first stop for preparing an SBA application.
- sba.gov: program pages for 7(a), 504 and microloans.
SBA loans compared with other options
| Option | Who provides it | Commonly used for | Worth knowing |
|---|---|---|---|
| SBA 7(a) loan | An SBA-participating lender, with an SBA guarantee to the lender | Working capital, equipment, real estate, refinancing, changes of ownership | SBA eligibility rules apply in addition to the lender's own |
| SBA 504 loan | A Certified Development Company together with a senior lender | Buildings, land and long-term machinery and equipment | Not for working capital or inventory |
| SBA microloan | An intermediary lender | Smaller needs, often for early-stage businesses | Check sba.gov for current limits and intermediaries |
| Working capital, term loan or line of credit | A lending partner, not SBA-backed | Operating gaps, planned investments, recurring needs | The partner sets its own criteria and terms; see business loans |
| Equipment financing | An equipment lender or lessor | Vehicles, machinery and other equipment, by loan or lease | Usually secured by the equipment; see equipment financing |
| Merchant cash advance (not a loan) | A funder that buys future receivables | Short-term needs in businesses with steady card sales | Total cost can be high; see MCA vs. loan |
The comparison is general. Every lender, CDC, intermediary and funder sets its own terms within whatever rules apply to it.
How to decide which route to explore
A few questions point in one direction or the other:
- What is the money for? Buying or building real estate or long-life equipment is the kind of project the 504 program is designed around. Inventory and day-to-day costs are not eligible for 504.
- Does your business meet SBA eligibility rules? Those come on top of the lender's requirements; sba.gov and the SBDC can help you check.
- What paperwork can you produce? Our documents checklist covers what lenders commonly request, SBA or not.
- How do the offers compare? Whatever you are offered, compare the total amount you will repay, the payment schedule, fees, collateral and guarantees. The loan payment calculator can help.
You don't have to choose before you start. Some owners talk to an SBA lender and explore other options at the same time, then compare what is actually offered.
Where Rockstone Lending fits
Rockstone Lending connects you with lending partners; partners make credit decisions and set rates and terms. Those partners offer working capital, term loans, lines of credit, equipment financing and merchant cash advances. They do not include SBA loans through us. If one of those options is worth exploring alongside, or instead of, an SBA loan, we'll talk it through with you. See how the process works or start an application.
By Rockstone Lending · Updated
