• Accel Business Funding

Can You Take Out Multiple SBA Loans?

Small Business Administration (SBA) loans have some of the best terms available for business owners searching for additional funding. Because of how attractive SBA loans are to many business owners, the question “can you take out multiple SBA loans?” is bound to arise.

It is possible to take out multiple SBA loans provided that each of your loans fits within the SBA’s lending guidelines. It is important to note that if you do get approved for two SBA loans of the same kind within a 90 day period, the SBA may treat it as one loan for underwriting purposes.

Eligibility for Multiple SBA Loans

To be eligible to take out multiple SBA loans, your business must:

  • Stay within the SBA’s maximum borrowing amount ($5 million for SBA 7(a) loans and $5.5 million for SBA 504 loans)

  • Be in good standing on your current SBA loan

  • Continue to meet the SBA eligibility requirements

  • Have collateral for each additional SBA loan

In addition, you need to maintain a strong personal credit score (680+).

How Many SBA Loans Can You Take Out?

There is no hard limit on the number of SBA loans a borrower can take out, as long as they remain within the SBA lending guidelines. Some companies have taken up to 5 SBA 504 loans because of rapid growth.

Why would you need multiple SBA loans?

There are many reasons why a business owner may need to take out multiple SBA loans:

  • Purchasing a new business location

  • Hiring more employees

  • Buying or leasing equipment

  • Expansion

As you can see, multiple SBA loans can be used to cover the expenditures that will improve your business.

Combining different types of SBA loans

There are no restrictions when it comes to combining different types of SBA loans. As long as the borrowing amount does not exceed the $5 million cap, then any combination of SBA loans is allowed.


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