Qualifying
How do I get a $1 million business loan?
$1 million requires SBA 7(a), SBA CDC/504, or a conventional bank commercial loan. Qualification floors are 720+ personal FICO, 3+ years in business, $2M+ annual revenue, a 1.35×+ DSCR, 3 years of tax returns, and real property collateral. Non-bank options rarely exceed $500K; $1M financing is a bank relationship business.
The full picture
What $1 Million Funds
$1 million is major capital — commercial real estate purchase or major renovation, a multi-location expansion, a significant business acquisition, a full manufacturing equipment line, a franchise system-wide rollout, or 2–3 years of payroll for a growing 20-person operation. At this level, lenders treat the deal as a commercial transaction — expect a formal credit memo, underwriting committee, and 90–120 day close for SBA or bank products.
What Lenders Look For at $1 Million
- 720+ personal FICO (credit at this level is a binary qualifier, not just a pricing lever)
- 3+ years in business with audited or CPA-reviewed financial statements
- $2,000,000+ annual revenue — lenders typically want 2–2.5× annual revenue coverage
- DSCR of 1.35×+ — most banks won't approve under 1.25×, and competitive pricing starts at 1.35×
- Real property collateral strongly preferred; business assets alone rarely cover $1M
- 3 years of business and personal tax returns, year-to-date financials, accounts receivable/payable aging
- Personal financial statement and net worth verification (net worth typically ≥ loan amount for SBA)
- Environmental assessment for real estate-backed deals
Which Products Fit $1 Million
- SBA 7(a) loan (maximum $5M; prime + 3.0% at this size — SBA's lowest-spread tier, for loans over $350,000; 10-year working capital / 25-year real estate)
- SBA CDC/504 (real estate or major equipment — 40% bank / 50% CDC fixed rate / 10% equity; 20–25 year terms)
- Conventional commercial real estate loan (CRE, LTV up to 75–80%, 5–7 year balloon or 20–25 year amortization)
- Conventional commercial term loan (non-CRE; 5–7 year term, 720+ FICO, 3+ years seasoning)
- USDA B&I (rural; 80% guarantee, up to 30-year real estate terms)
Worked example — $1M SBA 7(a) repayment
SBA 7(a): $1,000,000 at 9.75% APR (prime + 3.0%, SBA's lowest-spread tier for loans over $350,000; prime is 6.75% as of August 2026) over 25 years (real estate) = $8,911/month, total cost ≈$2,673,412. Or over 10 years (working capital) = $13,077/month, total ≈$1,569,243. Guarantee fee on $1M at 3.75% ≈ $28,125 (typically financed in). SBA 504: $1M deal — bank funds $400K at market rate + CDC funds $500K at fixed ≈6.2% over 20 years ($3,616/month on CDC portion). 504 is cheaper on fixed-asset deals but requires 10% equity injection ($100K cash).
Non-bank lenders rarely fund $1M
Most non-bank/online lenders cap at $500,000. Products marketed as '$1M business loans' at high factor rates are uncommon and extremely expensive — effective APRs can exceed 40%. At $1M, the cost differential between SBA (≈9–11% APR) and non-bank (40%+ APR) is hundreds of thousands of dollars over the loan term. This is a bank/SBA deal. Build the relationship and prepare the documentation.
Sources
- SBA 7(a) maximum loan amount is $5 million; for loans exceeding $350,000, lenders must use standard 7(a) processing (not Express or PLP), which typically adds 45–90 days to closing. — SBA — 7(a) Loan Program
- SBA CDC/504 program funds fixed assets; the CDC portion is funded via SBA-guaranteed debentures and carries a fixed rate set at debenture pricing (historically 80–100 bps above 10-year Treasury). — SBA — 504 Loan Program
- Federal Reserve SBC Survey 2024 found only 22% of loan/line-of-credit/cash-advance applicants at large banks received full approval, versus 51%–52% at small banks and credit unions (the survey does not break approval rates out by requested loan amount). — Federal Reserve SBC Survey 2024
- FRED data: prime rate is 6.75% as of August 2026. SBA 7(a) pricing for loans over $350,000 with longer maturities is capped at prime + 3.0% (the SBA's lowest tier), placing all-in rates at approximately 9.75%. — FRED — Prime Rate
Key takeaways
- $1 million is a bank/SBA deal — non-bank lenders rarely go this high, and those that do charge rates that add $400K+ in cost vs. SBA.
- 720+ FICO, $2M+ annual revenue, 3 years of tax returns, and real property collateral are the hard gates. Address these well before applying.
- SBA CDC/504 is the lowest-rate path for fixed assets — plan 10% equity injection ($100K) and a 90–120 day close.
- DSCR of 1.35×+ is needed for competitive pricing — document your net operating income from tax returns, not projections.
- Apply at Find my match — ClearValue Lending routes qualified borrowers to SBA-aligned lender partners.
Frequently asked questions
Can a non-bank or online lender fund a $1 million business loan?
Rarely. Most non-bank and online lenders cap funding at $500,000. Products marketed as '$1M business loans' at high factor rates are uncommon and extremely expensive, with effective APRs that can exceed 40% versus roughly 9–11% APR for SBA — a difference worth hundreds of thousands of dollars over the loan term. At $1M, this is a bank/SBA deal.
What revenue does a business need to qualify for a $1 million loan?
Lenders typically want $2,000,000+ in annual revenue, providing 2–2.5x coverage of the loan amount, along with a DSCR of 1.35x or higher for competitive pricing.
How long does it take to close a $1 million SBA loan?
Expect 90–120 days for SBA or bank products at this size. Loans exceeding $350,000 must use standard 7(a) processing rather than Express or PLP tracks, which typically adds 45–90 days to closing.
Is SBA 504 or SBA 7(a) cheaper for a $1 million real estate or equipment purchase?
SBA 504 is generally cheaper for fixed-asset deals — in a worked $1M example, the CDC portion prices around 6.2% fixed over 20 years versus 7(a)'s prime + 3.0% lowest-spread tier (roughly 9.75% APR) — but 504 requires a 10% equity injection ($100,000 cash) that 7(a) does not.
How much personal net worth do I need for a $1 million SBA loan?
SBA guidelines expect personal net worth to typically be at or above the loan amount, verified through a personal financial statement, alongside 720+ personal FICO and 3+ years in business with CPA-reviewed or audited financials.
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Published 2026-05-22 · Updated 2026-08-19 · https://clearvaluelending.com/answers/how-to-get-a-1-million-business-loan