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Your business may not qualify for an SBA Loan anymore...

  • Writer: Jonathan Ortega
    Jonathan Ortega
  • Apr 29
  • 2 min read

Updated: Apr 30

If you're a small business owner looking for funding, there's something you need to know: obtaining an SBA loan just got a lot harder.


The U.S. Small Business Administration (SBA) is rolling back several policies that made it easier for businesses to qualify for a 7(a) loan over the past few years. These changes are meant to protect the program. However, for business owners like you, it means stricter rules, longer approvals, and more rejections.


What Changed?


  • Stricter Underwriting Criteria: Lenders now have to follow tighter rules when reviewing SBA loan applications. You’ll need stronger credit, better financials, and more documentation to get approved.

  • Higher Fees for Borrowers: Lender fees were reintroduced in March 2025. SBA loans will carry guarantee fees ranging from 0.25% to 3.75%, depending on the loan amount and term.


Why Is This Happening?


A stylized chart titled “SBA Loan Approvals and Defaults” shows a series of blue bars steadily increasing from left to right, representing rising loan approvals over several years. A bold red line with dots overlays the bars, curving sharply upward to indicate a dramatic rise in loan defaults. The x-axis reads “Over the last few years,” emphasizing the timeframe. The background is off-white with minimal distractions, drawing attention to the visual contrast between approvals and defaults.

Over the last few years, the SBA made it easier to get approved by loosening credit rules and eliminating lender fees. Unfortunately, that led to a spike in defaults, meaning too many businesses couldn’t repay their loans.


Now, the SBA is trying to fix the program before it gets worse. While that's good for the long-term health of SBA loans, it makes it more difficult for small businesses to qualify right now.



What Should You Do?


If you’re planning to apply for an SBA loan, be prepared:

  • Gather strong financials (tax returns, bank statements, business plans).

  • Expect stricter reviews and longer waiting times.

  • Understand that you may still be declined even with a solid application.


Here’s the good news: If the SBA isn’t a fit for you anymore, you have other financing options.


Capital Infusion offers flexible funding solutions designed for small businesses who need fast, reliable capital without jumping through endless hoops. With minimal documentation and no hard credit checks! Whether you need working capital, equipment financing, or funding to expand, we can help you move forward.


Contact us today to learn how we can help you grow — no SBA red tape required.



 
 
 

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