SBA loans aren't one product — they're six distinct programs with different caps, uses, and lenders. Here's how 7(a), 504, Microloan, CAPLines, and Disaster Loans actually differ.
"SBA loan" gets used as if it's one product. It isn't. The U.S. Small Business Administration backs at least six distinct loan programs, each with its own loan-size cap, eligible uses, guarantee structure, and lender network — and picking the wrong one wastes weeks of a process that's already slow.
This guide breaks down the SBA loan menu the way an underwriter actually sees it: 7(a) for general-purpose lending, 504 for real estate and equipment, Microloan for small-dollar and startup capital, CAPLines for revolving cash-flow needs, and Disaster Loans for federally declared disaster areas — plus what changed when the SBA doubled its cumulative loan limit in mid-2026.
SBA 7(a) is the program most people mean when they say "SBA loan." It's general-purpose — working capital, equipment, owner-occupied real estate, business acquisitions, partner buyouts, and debt refinancing all qualify. The SBA doesn't lend directly under 7(a); private lenders originate and fund, and the SBA guarantees a percentage (85% on loans up to $150K, 75% above that), which is why 7(a) pricing beats what most small businesses could get on a conventional loan alone.
Two 7(a) variants matter for specific situations: SBA Express caps at $500,000 but gives participating lenders delegated underwriting authority, cutting the SBA's own review to 24–36 hours (the trade-off is a lower 50% guarantee, which some lenders price for). The 7(a) Working Capital Pilot, launched in 2024, caps maturity at 60 months and is built specifically for short-term working-capital needs that don't fit the standard 7(a) shape.
SBA 504 is purpose-built for owner-occupied commercial real estate and long-life equipment — and it's structurally different from 7(a). A 504 deal stacks three pieces: a conventional bank loan (50% of the project, first lien), a Certified Development Company debenture backed by the SBA (40%, second lien), and a borrower equity injection (10%, sometimes 15–20% for startups or special-purpose buildings like hotels and gas stations). The CDC portion carries a fixed rate pegged to the 10-year Treasury, which is what makes 504 the cheapest capital available for these specific uses.
SBA Microloan is the smallest program and the one most likely to fit a business that can't yet clear a bank's underwriting bar. The SBA doesn't lend directly here either — it funds nonprofit intermediary lenders, typically Community Development Financial Institutions (CDFIs), who set their own credit standards within SBA limits and lend directly to the business.
Eligible uses: working capital, inventory, supplies, furniture/fixtures, and machinery/equipment. Not eligible: paying off existing debt or purchasing real estate. Microloan intermediaries often specialize in underserved markets — women-owned, minority-owned, rural, and veteran-owned businesses — and are typically more flexible on time-in-business and credit history than a 7(a) lender.
CAPLines is an umbrella program inside 7(a) that swaps the lump-sum structure for a revolving line — draw, repay, draw again — sized to a specific, recurring cash-flow pattern. All four CAPLines types share 7(a)'s eligibility rules, rate caps, and guarantee structure; what changes is how proceeds must be used.
Maximum facility size matches 7(a): $5,000,000 (rising to $10,000,000 under the SBA's July 2026 cumulative-cap change — more below), with terms up to 10 years. A term loan makes sense for a one-time acquisition; a CAPLines facility makes more sense when the gap is recurring and tied to a predictable cycle.
Disaster Loans are the outlier on this list — available only to businesses in a federally declared disaster area, and the one SBA program that runs directly through the SBA rather than a bank or lender partner. There are two types: Economic Injury Disaster Loans (EIDL) provide working capital to businesses that suffered economic injury from a declared disaster, up to $2,000,000, with long repayment terms (up to 30 years). Physical Disaster Loans, also capped at $2,000,000, cover repair or replacement of disaster-damaged property, equipment, and inventory, and can be combined with EIDL if both types of damage occurred.
Eligibility requires a federal disaster declaration covering your business's location — this program doesn't apply outside a declared disaster. Apply directly at sba.gov's disaster assistance portal; ClearValue Lending doesn't originate Disaster Loans.
The SBA doubled the cumulative amount a single borrower can access across 7(a) and 504 combined, from $5M to $10M, effective July 4, 2026. This doesn't change either program's per-loan maximum — a single 7(a) loan still caps at $5M and a single 504 loan still caps at $5M — what changed is that the two programs are now decoupled, so a qualified borrower can use up to $5M through 7(a) and $5M through 504 independently.
This mainly matters for established businesses with capital needs above $5M — manufacturing, construction, logistics, energy, and food production come up most often — and for borrowers who previously hit the old $5M combined ceiling on prior SBA loans. See our full breakdown of the $10M cumulative cap change for who benefits and what to prepare before applying.
ClearValue Lending is a small business funding platform, not an SBA-approved lender. We route eligible applications to lender partners in our network — including SBA-approved 7(a), Express, and 504 lenders, and, for Microloan-fit files, either a partner with Microloan intermediary status or the SBA's own microlender locator. For Disaster Loans specifically, the SBA processes those applications directly — we don't originate that program. If you're not sure which SBA type fits your situation, our SBA eligibility resources walk through the documentation each program expects before you apply.
SBA financing is six programs wearing one name. Match the program to what you're actually funding — general purpose to 7(a), real estate/equipment to 504, small-dollar/startup to Microloan, speed to Express, recurring cash-flow cycles to CAPLines, and disaster recovery to EIDL/Physical — and you'll cut weeks off a process that's already slow by nature. For the full financing menu beyond SBA, see our complete guide to business financing.
Six main programs: SBA 7(a) (general-purpose, up to $5M), SBA 504 (real estate/equipment, up to $5M), SBA Microloan (up to $50,000), SBA Express (a 7(a) variant up to $500,000 with faster SBA response), SBA CAPLines (revolving lines under 7(a), up to $5M), and SBA Disaster Loans (EIDL and Physical Disaster Loans, up to $2M each, available only in federally declared disaster areas).
SBA 7(a) is general-purpose — working capital, equipment, acquisitions, refinancing — with a variable rate and up to $5M. SBA 504 is purpose-built for owner-occupied commercial real estate and long-life equipment, using a fixed-rate 10/50/40 structure (borrower/bank/CDC), also up to $5M.
Each SBA loan program has its own per-loan cap: $5M for 7(a), $5M for 504, $500,000 for SBA Express, and $50,000 for Microloan. As of July 4, 2026, the SBA also allows a combined cumulative cap of $10M per borrower across 7(a) and 504 together, up from the prior $5M combined ceiling.
SBA Microloan is the most accessible option for startups — intermediaries are often more flexible on time-in-business than a bank. Standard 7(a) and 504 lenders typically want 2+ years of operating history and profitable financials, though strong projections and industry experience can sometimes offset a shorter track record.
Standard 7(a) and 504 loans typically take 30–90 days from application to funding (faster with a Preferred Lender, longer for complex 504 real estate deals). SBA Express cuts the SBA's own review to 24–36 hours, though total time to funding still depends on the lender's own underwriting. Disaster Loans run on their own timeline set by the SBA.
No. ClearValue Lending is a funding platform, not an SBA-approved lender. We route eligible applications to SBA-approved lender partners in our network. Final approval, loan amount, rate, and funding speed are determined by the lender, not by ClearValue Lending.