How Many SBA Loans Can You Get? Limits, Rules, and Strategies

As per a 2022 survey, 64% of businesses applying for SBA loans are at least partially approved. This means that your odds of securing funding are better with SBA. 

Small Business Administration loans are partially guaranteed by the government, which reduces the risk for lenders. Since there’s less risk involved for the lending party, you are likely to get more favorable terms if your application is approved. 

Hence why, even though eligibility criteria with SBA is strict, many small business owners consider it for funding. However, one common question arises: how many SBA loans can you get? 

The good news is that SBA loans are not a one-time opportunity, you can apply for more than one under certain conditions. However, there are specific rules, limits, and strategies that business owners must understand before taking on multiple loans. 

This article breaks down everything you need to know about maximizing your SBA loan opportunities.

What are SBA Loans?

SBA loans are financing options backed by the U.S. Small Business Administration (SBA) to help small businesses access capital when they may not qualify for traditional bank loans. The SBA doesn’t directly lend money; instead, it partners with approved lenders such as banks, credit unions, and online lenders. 

The government guarantees a portion of the loan, which reduces the lender’s risk and makes it easier for small businesses to get approved. These loans are popular because they typically offer lower interest rates, longer repayment terms, and higher borrowing limits compared to conventional loans. 

SBA loans can be used for a wide range of purposes, expanding operations, buying equipment, refinancing debt, or working capital. With programs like the 7(a) Loan Program, CDC/504 Loans, and SBA Microloans, there are flexible options tailored to different business needs. 

For many entrepreneurs, SBA loans serve as a stepping stone to growth by providing affordable and accessible financing.

How to Qualify for SBA Loans?

Qualifying for an SBA loan requires meeting both SBA and lender-specific requirements. While the government reduces risk by guaranteeing part of the loan, lenders still evaluate businesses carefully before approving funding. 

Here are the main factors you need to know:

1. Creditworthiness

Both personal and business credit scores play a major role. Most lenders expect a personal FICO score of 620 to 680+. A higher score increases your chances of approval and can secure better terms. Business credit history, if established, is also reviewed.

2. Business Size and Type

Your business must meet the SBA’s definition of a small business, which varies by industry. Additionally, only for-profit businesses operating legally in the U.S. qualify. Nonprofits and speculative ventures (like gambling or real estate investment firms) are generally excluded.

3. Time in Business

Many SBA lenders prefer businesses with at least 2 years of operating history. Startups may still qualify, but usually with stronger personal credit and a detailed business plan.

4. Revenue and Cash Flow

Lenders need to see that your business generates enough revenue to cover loan payments. Financial statements such as profit-and-loss reports and cash flow projections are often required. Demonstrating consistent income reassures lenders of repayment ability.

5. Collateral and Personal Guarantee

Although SBA loans are partially guaranteed by the government, lenders often require collateral (such as equipment, real estate, or receivables). In most cases, business owners must also provide a personal guarantee, making them personally liable if the business defaults.

6. Documentation

Applicants must provide tax returns, financial statements, bank records, business licenses, and a solid business plan. This helps lenders evaluate risk and understand how the loan will be used.

7. No Delinquent Debt

If you have outstanding federal debt, such as unpaid taxes or student loans in default, you’re unlikely to qualify. SBA lenders require businesses to be in good standing with federal obligations.

8. Strong Business Plan

For startups or expansion loans, a detailed business plan is essential. It should outline your market, operations, growth strategy, and how the loan will be used to increase profitability.

How Many SBA Loans Can You Get?

There is no strict limit on the number of SBA loans a business can have at one time. Instead, what matters is your ability to repay and whether the loans serve legitimate business purposes. 

For example, you could have a 7(a) loan for working capital and a CDC/504 loan for real estate or equipment at the same time. Lenders and the SBA will look closely at your debt-to-income ratio, cash flow, and repayment history before approving additional loans.

The key is that each loan request must make sense financially and align with SBA guidelines. Simply stacking loans without demonstrating a strong repayment plan will hurt your chances of approval.

Strategies to secure multiple SBA loans include:

• Diversify loan purposes: Use different SBA loan programs for different needs, such as 7(a) for operations and 504 for real estate.
• Maintain strong financial records: Clean tax filings, accurate profit-and-loss statements, and updated balance sheets show lenders you can handle multiple debts.
• Demonstrate repayment capacity: Lenders need to see that cash flow covers all current and future loan obligations comfortably.
• Build lender relationships: Working consistently with one SBA-approved lender can increase trust and make approvals for subsequent loans easier.
• Plan ahead: Don’t apply for multiple loans at once. Space out applications strategically to show business growth and responsible use of funds.

Conclusion

SBA loans are one of the most valuable tools for small businesses seeking affordable financing with flexible terms. While it’s possible to hold multiple SBA loans, success comes down to eligibility, repayment capacity, and smart planning. 

By understanding the rules and approaching applications strategically, business owners can unlock funding for growth, expansion, and long-term stability.

At ROK Financial, we specialize in helping business owners navigate the SBA loan process with confidence. We work closely with lenders, review your financials, and guide you toward the best loan programs for your unique needs.

Contact us today to learn how ROK Financial can help you secure the best deals on SBA loans now. 

Frequently Asked Questions

1. What are the risks of having multiple SBA loans?

The biggest risk with multiple SBA loans is overleveraging, i.e. taking on more debt than your business can comfortably repay. 

Multiple SBA loans mean higher monthly obligations, which can strain cash flow if revenue dips. Defaulting on any loan can damage your credit, jeopardize future financing, and even put personal assets at risk if a personal guarantee is involved. 

Therefore, it’s important to only borrow what your business can sustainably handle.

2. Can startups qualify for multiple SBA loans?

Yes, startups can be eligible for SBA loans, but it’s more challenging. 

Startups typically lack an established revenue history, so lenders rely heavily on personal credit and the strength of your business plan. Getting one SBA loan is already tough for new businesses, so qualifying for multiple loans usually requires excellent financial preparation, strong projections, and in some cases, collateral or a co-signer.