Complete Guide to SBA Loans in Los Angeles (2026)

For small business owners in Los Angeles and across North America, securing capital is often the biggest hurdle to growth. Whether you're looking to open a new location in Santa Monica, buy a warehouse in the Arts District, or expand your operations anywhere in the US or Canada, an SBA Loan is often the best financing product available.

In this guide, we'll break down exactly how SBA loans work, the specific requirements for 2026, and how businesses can qualify.

What is an SBA Loan?

Contrary to popular belief, the Small Business Administration (SBA) does not lend money directly to businesses. Instead, they provide a guarantee to lenders (like banks and credit unions) that covers a portion of the loan if the borrower defaults. This guarantee lowers the risk for lenders, encouraging them to offer loans with lower interest rates and longer repayment terms than traditional commercial loans.

Types of SBA Loans for Businesses

SBA 7(a) Loan

The 7(a) program is the SBA's most popular loan product. It is incredibly versatile and can be used for:

• Working capital
• Purchasing inventory or equipment
• Refinancing existing business debt
• Buying a business

Maximum Loan Amount: $5 Million
Terms: Up to 10 years for working capital, up to 25 years for real estate.

SBA 504 Loan

The 504 loan is designed specifically for major fixed asset purchases. If you want to buy a building for your business or purchase heavy machinery, this is the loan for you. It typically involves a lower down payment (often just 10%) and fixed interest rates for up to 25 years.

Requirements to Qualify in 2026

Qualifying for an SBA loan requires preparation. Lenders will look for:

• Credit Score: Typically 680+ for the primary business owners.
• Time in Business: Usually 2+ years of operation.
• Profitability: Tax returns showing the business can service the debt.
• Collateral: While not always mandatory for smaller amounts, collateral is often required for larger loans.

Why Choose an SBA Loan?

The biggest advantage is the cost. SBA loans have interest rate caps that keep them affordable, even when market rates rise. Additionally, the long repayment terms mean your monthly payments are lower compared to short-term online loans or merchant cash advances.

The Application Process

Applying for an SBA loan can take time—often 30 to 90 days. It involves gathering financial statements, tax returns, and a business plan. Working with a specialist like PMF LA can streamline this process, as we know exactly what local lenders are looking for.

If you're ready to take your business to the next level, an SBA loan might be the fuel you need.