Small businesses in America are surging back—and the data proves it. Despite high interest rates and tighter credit conditions, SBA lending activity is hitting record levels in 2025. For startup founders and business buyers, that’s a powerful sign that funding is not only available—it’s growing fast.
Backed by federal momentum and new policy shifts, SBA loans are fueling a new wave of entrepreneurship, particularly among small manufacturers, business acquirers, and first-time founders.
This guide covers the key developments shaping startup funding in 2025, including:
- The return of SBA 7(a) loan fees
- A 74% loan approval spike for manufacturers
- A 42% surge in 7(a) originations overall
- A 21% rise in SBA 504 loan volume
Read on to learn how to navigate the new lending landscape—and how to get funded faster in today’s market.
SBA Loans Are Booming: Mid-Year Data Reveals Record Growth
According to an industry report published in May 2025, SBA 7(a) loan originations have soared 41.6% year-to-date compared to 2024. SBA 504 loans, commonly used for equipment and real estate, are also up 21.0%.
These figures reflect not just economic recovery—but also a reinvigorated belief in American entrepreneurship. Businesses across industries are applying for larger loans, expanding facilities, and hiring staff despite elevated interest rates.
📈 “The numbers speak for themselves—small businesses are expanding rapidly and turning to the SBA to help power their growth,” said an SBA regional administrator.
🔗 See the full report via Bankrate’s SBA lending coverage.
Fee Reinstatements: What It Means for Startup Borrowers
In a notable policy reversal this spring, the SBA reinstated borrower and lender fees on 7(a) loans, ending a temporary pandemic-era waiver.
Why the Change?
To ensure the long-term sustainability of SBA programs, especially the 7(a), the agency restored its “zero-subsidy” model. This protects the program from taxpayer burden and supports future funding access.
What You’ll Pay in 2025:
- Borrower fees: Typically 0.25%–3.5% of loan amount, depending on size and term
- Lender fees: Can be passed along or reflected in higher rates
- Effect on startups: Slightly higher cost of borrowing—but still below-market rates
💡 SBA loans remain among the most affordable capital sources even with fees back in place.
‘Made in America’ Spurs 74% Spike in Loans for Small Manufacturers
Under the Trump administration’s early 2025 Made in America initiative, SBA loan activity for U.S.-based manufacturers has exploded—up 74% compared to early 2021.
This reflects growing demand for:
- Domestic sourcing
- Infrastructure and clean energy projects
- American-made goods and supply chain resilience
Startups in manufacturing, assembly, and fabrication are benefiting from accelerated SBA approvals, local procurement incentives, and expanded loan availability.
🏭 “American manufacturing is roaring back,” said the SBA chief, citing these loan surges as proof of revitalized industrial growth.
SBA 504 Loans: Expansion-Friendly Financing on the Rise
SBA 504 loans—which support fixed-asset purchases like real estate, heavy machinery, or large equipment—have seen a 21% jump in volume year-to-date.
These loans are ideal for:
- Buying warehouses, factories, or storefronts
- Equipment upgrades or expansions
- Energy-efficient retrofitting or construction
Key Features of SBA 504 Loans:
- Long-term fixed interest rates
- Up to 90% financing with 10% down
- Ideal for owner-occupied commercial spaces
🏗️ If your startup needs a physical location or equipment investment, 504 loans offer low, fixed rates even in today’s high-interest climate.
Startup Capital: SBA 7(a) Loans Still Lead the Pack
Despite rising loan activity, the SBA 7(a) remains the go-to option for general startup funding, acquisitions, and working capital.
Highlights of the SBA 7(a):
- Loans up to $5 million
- Terms up to 25 years
- Competitive rates typically below traditional lenders
- Can be used for almost any business need
This versatility, plus SBA backing for lenders, makes the 7(a) ideal for:
- Baby boomers acquiring businesses
- Franchise purchases
- Service or retail startups
✔️ Many borrowers are using 7(a) loans to fund business transitions or early growth phases with favorable repayment structures.
Fintech, CDFIs, and Alternative Lenders: Faster, Flexible Options
Not every startup qualifies for SBA loans—or wants to wait weeks for approval. Fintech and community lenders are stepping in with fast, tech-enabled funding.
Alternative Funding Sources:
- Online term loans: Funding within 24–72 hours
- Revenue-based financing: Great for ecommerce or subscription startups
- Business credit lines: Revolving access for flexible needs
- Community Development Financial Institutions (CDFIs): Support for underserved founders
📊 Fintech lenders are projected to issue 27% more business loans in 2025 than in 2024.
Boost Your Approval Odds: What Lenders Want to See
To qualify for SBA or any small business loan in 2025, you’ll need to come prepared. Here’s how to improve your chances:
1. Polish Your Credit
- Aim for 680+ personal credit score
- Eliminate derogatory marks
- Establish business credit with vendors or DUNS registration
2. Prepare a Winning Business Plan
- Include financial projections
- Clearly define your market and competitors
- Showcase your experience or team’s background
3. Gather Key Financial Documents
- Last 2 years’ tax returns
- Personal financial statement
- Profit & loss projections and business licenses
🗂️ Keep these docs organized and digitized—most lenders now prefer fully online applications.
SBA vs. Alternatives: What’s Right for You?
| Loan Type | Best For | Turnaround Time | Rates |
|---|---|---|---|
| SBA 7(a) | Acquisitions, expansions | 2–4 weeks | 7%–9% |
| SBA 504 | Real estate, equipment | 3–6 weeks | 6%–8% (fixed) |
| Fintech Term Loan | Fast cash, less paperwork | 1–3 days | 9%–25% |
| CDFI Loans | Underserved or local businesses | 1–2 weeks | 6%–15% |
| Business Credit Line | Flexible needs, seasonal expenses | Instant – 1 week | Variable |
📌 Weigh speed, cost, and flexibility based on your business’s goals and timeline.
Conclusion: 2025 Is a Prime Year to Launch or Grow Your Business
With SBA loan originations surging, federal initiatives driving manufacturing, and fintech lenders offering flexible options, 2025 is shaping up to be a powerful year for business founders.
Yes, there are challenges: interest rates are high and lender standards are tighter. But there’s also more funding, more programs, and more energy behind small business growth than we’ve seen in years.
Whether you’re buying a business, expanding your operations, or launching your first venture—there’s never been a better time to get funded.
Take the Next Step with BoomerBiz Loans
Ready to elevate your entrepreneurial journey? BoomerBiz Loans specializes in supporting baby boomer business acquisitions, offering a streamlined 3-step loan application process for fast approvals within 24–48 hours.
With competitive low-interest rates, flexible terms, and loans up to $10M, we’re here to assist both first-time buyers and experienced business owners.
Don’t let funding be a hurdle to your success. Start Your Loan Application today and join the ranks of successful entrepreneurs who’ve experienced the BoomerBiz advantage.
0
20
20
20