Compare
SBA 7(a) vs. a conventional bank loan
Most owners buying a restaurant, a practice, or a contracting business assume the SBA route is automatically better. It often is — but not always, and the trade is real.
Side-by-side comparison
| SBA 7(a) | Conventional bank loan | |
|---|---|---|
| Government guaranty | Yes — SBA guarantees a portion to the lender | None; the bank carries the full risk |
| Equity injection | Typically lower down payment required | Usually a larger owner contribution |
| Term length | Longer terms, especially with real estate | Shorter terms; balloons are common |
| Documentation | Heavier — SBA forms plus the lender's own file | Lighter, but credit standards are tighter |
| Speed to close | Slower; more review layers | Faster when your file is already strong |
| Best when | Thin collateral, acquisition, or long payback | Strong balance sheet, collateral, speed matters |
Where the difference actually shows up
The guaranty is the whole mechanism
SBA 7(a) loans carry a partial government guaranty to the lender. That guaranty is why a bank will look at a borrower it would otherwise decline — thinner collateral, a shorter operating history, an acquisition where the asset is largely goodwill. You are not borrowing from the SBA; you are borrowing from a bank that has been given a reason to say yes. Everything else about the program — the forms, the timeline, the scrutiny — is the price of that reason.
We build the package. The lender makes the decision
Say this plainly: CMA does not approve loans, place loans, or influence credit decisions, and we are not a bank or a broker. What we do is prepare the plan, the driver-based projections, the use-of-funds, and the supporting narrative to the standard underwriters actually apply — for either path. The same core work serves both, which means you do not have to pick the program before the package exists.
When the other option is right
If your business has a strong balance sheet, real collateral, and a clean operating history — or if you are moving on a deadline where weeks matter — a conventional bank loan is very often the better call. It closes faster, carries less paperwork, and does not require you to satisfy a second set of program rules on top of the bank's own. The SBA path exists to bridge a gap; if you do not have that gap, do not pay the timeline and documentation cost to cross it. Your banker and your CPA are the right people to confirm which side of that line you sit on.
FAQ
Common questions
Can CMA get me approved for an SBA loan?
No — and be skeptical of anyone who says they can. The lender makes the credit decision, and the SBA sets the program rules. What we control is the quality and completeness of what lands on the underwriter's desk: a defensible model, sourced market evidence, and a plan built to answer the questions reviewers actually ask.
Do I have to decide between SBA and conventional before we start?
No. The underlying work — the plan, the projections, the use-of-funds — is largely the same for both. We build that first, and it travels with you whichever way your lender steers. Many owners end up submitting to both and letting the terms decide.
What does the plan and package cost?
Business plans start at $6,500, or $2,500 for a raise under $250K, and financial models are scoped from there; larger or multi-entity engagements are fixed-priced after a scoping call. The lender's own fees, closing costs, and any SBA program fees are separate and set by them, not by us.
Or explore Business Plans & Funding.