Below are common funding options available in Virginia. You can compare them by purpose, cost, term length, and underwriting approach to see which may fit your needs.
SBA 7(a) Loan
The SBA 7(a) program is one of the most versatile government-backed small business loans. Lenders issue the loan; the SBA guarantees a portion, which can improve access for qualified borrowers. Common uses include working capital, equipment, refinance of eligible debt, business acquisition, and commercial real estate.
- Typical amounts: up to $5 million
- Terms: up to 10 years for working capital/equipment; up to 25 years for real estate
- Rates: variable or fixed; lenders set rates within SBA guidelines
- Considerations: personal guarantees are common; strong documentation required
Learn more about requirements and structure in this in-depth SBA loan guide. For official details, see the SBA’s 7(a) page at sba.gov. If you’re researching speed-to-funds for smaller amounts, review the SBA Express loan.
SBA 504 Loan (CDC/504)
Ideal for owner-occupied real estate or major fixed assets, SBA 504 loans combine a bank loan, a Certified Development Company (CDC) loan, and borrower equity. The structure is designed for long-term, fixed-rate financing paired with job creation or community development goals.
- Typical uses: purchasing or improving commercial real estate, heavy machinery
- Terms: often 10, 20, or 25 years on the CDC portion
- Potential benefits: longer fixed terms can help stabilize cash flow
More details at the SBA’s 504 page: sba.gov.
Traditional Term Loan
A term loan delivers a lump sum that’s repaid over a set schedule, typically with fixed payments. Best for defined projects with clear ROI.
- Use cases: renovations, equipment, inventory builds
- Terms: 2–7 years commonly
- Rates: vary widely based on credit, collateral, and market conditions
Learn the structure and typical costs in our resource on a Term Loan and a deeper-dive guide to a term loan for small business.
Short-Term Business Loan
Short-term financing is built for quick access and fast repayment, often from 3 to 18 months. These may carry higher costs but can serve short-lived needs.
- Use cases: bridge financing, urgent inventory, time-sensitive opportunities
- Repayment: daily or weekly in some cases
- Key tradeoff: speed versus cost
Review typical features here: Short-Term Online Loan.
Business Line of Credit
A revolving line provides flexible access to funds. Draw only what you need and pay interest on the drawn amount. Lines can be secured or unsecured.
- Use cases: working capital, payroll, unexpected expenses
- Benefit: reusability—when you repay, your available credit replenishes
- Considerations: periodic reviews; covenants may apply
Explore how a line works in our business line of credit guide or product overview: Business Line of Credit.
Equipment Financing and Leasing
Purpose-built financing for machinery, vehicles, and technology. The equipment often serves as collateral. Terms usually align to the useful life of the asset.
- Use cases: construction, manufacturing, medical, logistics, restaurants
- Potential benefits: conserve cash; possible tax considerations
See our guides: Equipment Financing and equipment financing tips.
Invoice Factoring (Receivables Financing)
If slow-paying customers strain cash flow, factoring converts unpaid invoices into immediate working capital. The factor advances a percentage and collects from your customers.
- Use cases: B2B companies with net-30/60/90 customers
- Key driver: invoice quality and customer creditworthiness
Learn the mechanics in our guide to invoice factoring.
Revenue-Based Financing
Repayment is tied to a fixed percentage of monthly revenue until a set amount is repaid. It’s not a loan in the traditional sense, but businesses sometimes use it alongside other products.
- Use cases: SaaS, eCommerce, or recurring revenue models
- Considerations: total repayment cap and cash flow variability
Overview here: Revenue-Based Financing.
Merchant Cash Advance (MCA)
An MCA provides a cash advance repaid via a percentage of daily card sales or fixed debits. Costs are typically higher; speed and accessibility attract some borrowers.
- Use cases: retail, restaurants, service businesses with card volume
- Key tradeoffs: speed, flexible repayment vs. higher total cost
Read the merchant cash advance guide for risks and alternatives.
Microloans
Microloans—often from CDFIs or nonprofits—can help startups and smaller firms fund early needs. They can come with technical assistance and mentorship.
- Loan sizes: often up to $50,000 (varies by program)
- Uses: inventory, supplies, equipment, working capital
Commercial Real Estate Loans
Owner-occupied or investment property loans help acquire, build, or refinance commercial properties. Terms, amortization, and rates vary by lender and property type.
Tip: Align loan structure with the asset’s useful life or revenue pattern. For example, consider a longer-term loan for real estate and shorter terms for fast-turning inventory.
