SBA-Alternative Term Loans
Long-term structure without the SBA timeline
An SBA-alternative term loan is conventional amortizing debt sized for expansion, refinancing, or acquisition. It costs more than a guaranteed SBA loan and closes in days instead of weeks, which is the entire trade.
- Amount
- $50,000 – $1,000,000
- Term
- 12 – 60 months
- Cost of capital
- 8% – 28% APR
- Speed
- Decision in minutes, close in 2 – 5 business days
Underwriting
How sba-alternative term loans is underwritten and priced
What the model reads
Two years of revenue trend where available, debt service coverage against existing obligations, tax and financial statement data for larger requests, ownership structure, and the same live bank feed used across every product.
How the trade-off is priced
An SBA 7(a) is cheaper because a government guaranty absorbs part of the loss. Without that guaranty, price reflects full credit risk. What is bought back is time: no guaranty package, no agency queue.
When this is the wrong product
If the use of funds can wait 45 to 90 days and the file is clean, a genuine SBA loan is usually the lower-cost answer. This product exists for closings that cannot wait.
Mechanics
How the structure operates, step by step
- 01
Full file built
Bank, tax, and statement data assemble into one underwriting file.
- 02
Coverage tested
Debt service coverage is tested against all existing positions.
- 03
Structure issued
Amount, term, and amortization schedule are returned together.
- 04
Close and fund
Signature, verification, and disbursement in 2 – 5 business days.
Eligibility snapshot
What qualifies for this product
- Time in business
- 24+ months
- Annual revenue
- $500,000+
- Personal credit
- 650+ FICO
- Documentation
- 3 months of statements plus 2 years tax returns
- Guaranty
- Personal guaranty required
Criteria are directional, not absolute. Files near a threshold are reviewed by a credit analyst. Average decision time across products is 4m 12s.
Restaurants, clinics, contractors, and online sellers — funded every day.
Questions
SBA-Alternative Term Loans questions, answered directly
- How is an SBA-alternative loan different from an actual SBA loan?
- An SBA loan is originated by a lender and partially guaranteed by the U.S. Small Business Administration, which lowers the lender's risk and therefore the rate, but requires an agency-compliant package that commonly takes 30 to 90 days. An SBA-alternative term loan carries no guaranty and no agency process, so it prices higher and can close in days. Structure — amortizing fixed payments over a multi-year term — is comparable.
- Can I refinance an SBA-alternative loan into an SBA loan later?
- Often, yes. Businesses frequently use fast term capital to close a time-sensitive transaction, then refinance into cheaper long-term debt once the SBA package clears. Confirm that your loan has no prepayment penalty before planning that path — CanFund term loans carry no prepayment penalty.
- What can an SBA-alternative term loan be used for?
- Expansion into a new location, buying out a partner, acquiring a business, consolidating higher-cost short-term positions, or a large capital project. It is designed for uses whose payback period runs longer than a short-term working capital gap.
More questions are answered on the full FAQ.
Related products
Get a priced sba-alternative term loans offer
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