Owning and operating a business is more than simply making ends meet. It’s constantly looking for ways to grow, expand, and succeed. And for many business owners, a U.S. Small Business Administration (SBA) loan can make all the difference in helping them meet those objectives now — and for the long term.
As a preferred SBA lender, and as part of our ongoing commitment to the communities where we live, work, and play, Zions Bank is equipped to lend a hand in helping small business owners get the funding they need to grow and flourish. The first step is to understand exactly what an SBA loan is and how it can help you.
What is an SBA loan?
To put it simply: SBA loans are long-term small business loans backed and partially guaranteed by the government. The U.S. Small Business Administration is a federal agency dedicated to furthering the growth and development of small businesses. It partners with lenders nationwide in their lending programs.
There are several types of SBA loans, but the most common is the 7(a) loan. The primary purpose of a 7(a) loan is to help borrowers who are ready to start, acquire or expand a small business; finance equipment; provide working capital; refinance an existing debt; or purchase real estate.
SBA 7(a) Loan Statistics
According to SBA data for the 2025 fiscal year:
- Nearly 90% of SBA loans are issued through banks
- About 54% of SBA loans are under $150,000
- About 28% of SBA loans are issued to businesses in operation for two years or less
- About 64% of SBA loans are issued to businesses in operation for two years or more
- About 20% of SBA loans are issued to female-owned businesses
- Nearly 24% of SBA loans are issued to Black- or Hispanic-owned businesses
How does an SBA loan work?
In many ways, an SBA loan works similarly to a conventional business loan where you apply through a lender and, if approved, receive funds that must be paid back at scheduled intervals. However, unlike conventional term loans, an SBA loan offers favorable terms unique to the SBA program, such as longer repayment periods and lower credit requirements. This can be especially helpful for new businesses or existing businesses looking to expand.
Why choose Zions Bank for your SBA loan?
Zions Bank is proud to be an SBA-preferred lender. Preferred lender status is awarded to lenders who have demonstrated their commitment to small business and their ability to effectively serve the market. High-volume SBA lenders like Zions Bank are delegated loan approval as well as closing and most servicing authority, enabling them to make loan decisions more rapidly.
But the benefits certainly don’t stop there.
Benefits of a Zions Bank SBA 7(a) loan
- Benefit: 1.5% rate discount on select SBA loans through Dec 31, 2025
Why it matters: A lower rate or rate discount can help borrowers lower their monthly payments, as well as save money in interest payments over the life of the loan. Learn more about SBA rate discounts.
- Benefit: Streamlined process
Why it matters: Our streamlined underwriting process for SBA 7(a) term loans up to $150,000 limits the upfront documentation requirements, helping businesses get funded faster.
- Benefit: Variety of loan uses and terms
Why it matters: From purchasing real estate to refinancing debt, an SBA loan can be used in many helpful ways. Likewise, loan terms can range from 7 to 25 years and are determined by how you plan to use the funds. This makes it easier to find the financing option that works best for you and your business.
- Benefit: Experience
Why it matters: Not only are we a preferred SBA lender, but our experience extends into a variety of industries. This allows us to discuss your needs, your market, and how to best capitalize on your growth opportunities.
Zions Bank is here for you every step of the way
To learn more about our SBA loan program, visit Zions Bank online or stop by a local branch and speak with one of our experienced bankers today.
Content above is offered for informational purposes only and does not constitute tax, legal, financial, or business advice. Contact a specialist about your specific needs and circumstances. Content may contain trademarks or trade names owned by parties who are not affiliated with Zions Bancorporation, N.A. Use of such marks does not imply any sponsorship by or affiliation with third parties, and Zions Bancorporation, N.A. does not claim any ownership of or make representations about products, services, or content offered under or associated with such marks.
