$5 million is exactly the SBA 7(a) program maximum, which makes this the most contested size in commercial lending. Above this number you leave government-guaranteed lending behind for conventional bank credit, private credit and structured capital — so the structure matters as much as the rate.
Loan size
$5M
Typical rates
8% – 11% APR
Fastest close
3 – 6 weeks
Structures
5 options
This size suits established businesses with a specific, sizable move to fund.
Typical terms by structure. Ranges are indicative — lenders price the specific credit.
| Structure | Typical rate | Term | Time to close |
|---|---|---|---|
| SBA 7(a) — at the program cap | 8% – 11% APR | Up to 25 years | 6 – 12 weeks |
| SBA 504 (real estate / equipment) | Below market fixed | 10 – 25 years | 8 – 14 weeks |
| Conventional bank term loan | 8% – 12% APR | 5 – 10 years | 4 – 10 weeks |
| Private credit / direct lender | 10% – 16% APR | 3 – 7 years | 3 – 6 weeks |
| Mezzanine or seller financing | 12% – 18% (or equity kicker) | 3 – 7 years | 4 – 10 weeks |
A sample of the $5M lenders and advisors in our network.
Shore Capital Partners
Private Equity
Chicago, IL
Shore Capital Partners provides healthcare & services private equity from Chicago, IL for small and mid-sized businesses and practices.
View profileFernCreek Capital
Private Equity
Orlando, FL
FernCreek Capital provides small business private equity from Orlando, FL for small and mid-sized businesses and practices.
View profileAscend Partners
Private Equity
New York, NY
Ascend Partners provides healthcare private equity from New York, NY for small and mid-sized businesses and practices.
View profileNot through the 7(a) program, which caps the gross loan at $5 million. The SBA 504 program can support larger real estate and equipment projects, often paired with a bank first mortgage. Anything above that is conventional, private credit or structured capital.
Plan on 6 to 12 weeks for SBA, 4 to 10 weeks for a conventional bank term loan, and 3 to 6 weeks with a private credit fund. Appraisals on real estate are usually the longest single step.
Conventional lenders typically want EBITDA at roughly 15% – 25% of the loan amount depending on leverage and collateral — often $750,000 to $1.25M for a $5M facility. Real-estate-secured deals can stretch higher because the property carries the risk.
One facility is usually cheaper and simpler to manage, and it gives you a single lender relationship and covenant package. Multiple loans can make sense when they are secured by different assets or when you want to preserve an existing low-rate mortgage.
Rates, terms and timelines reflect typical market ranges and vary by lender, credit profile and collateral. Nothing here is an offer or a commitment to lend.
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