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SBA Week Guide

National Small Business Week, established by the Small Business Bureau, is a way to celebrate small business and the impact they make on the American economy.

Written by
Marlese Lessing
Edited by
Rob Watts
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What to know about SBA Week 

Small business owners play a vital role in supporting local economies, providing jobs and diversifying the business sphere. Whether it’s your local mom-and-pop restaurant, a small-scale farmer, a specialty manufacturer or an e-commerce craft retailer, take some time to appreciate the small businesses that keep America running. 

For more information, check out some of Bankrate’s small business features, as well as exclusive tips for getting a small business loan. 

Fast facts about small businesses

Small businesses play a big role in the American economy. According to the SBA:

  • 99.9 percent of all firms in the United States are small businesses.
  • Small businesses produce 43.5 percent of gross domestic product.
  • Small businesses employ 59 million (45.9 percent) private sector employees, and add a total of $3.2 trillion to the national private sector payroll (39 percent). 
  • Small businesses created 20.2 million net new jobs From January 1995 to June 2023, outpacing large businesses by 7.4 million net new jobs. 
  • Small businesses accounted for 61.1 percent of net new job creation from 1995 to 2023. 

Small businesses also play a crucial role in offering employment and economic opportunities for many demographic groups. According to the US Census: 

  • In 2023, 1.3 million of small businesses (22.6 percent) were minority-owned. 
  • Around 1.3 million (22.3 percent) were owned by women. 
  • Roughly 273,542 (4.7 percent)  were veteran-owned.
  • In 2024, 14 percent of businesses were immigrant-owned.

Small businesses also make a large impact on the local economy, and foster growth in community in the towns and cities they’re based in. 

  • Nearly half (48 percent) of revenue generated at local businesses circulates into the local economy. 
  • Four out every five (80 percent) of small businesses make giving back to their community a part of their mission statement.
  • Two-thirds of businesses (66 percent) donated to local charities in 2022. 
  • In 2022, 64 percent of small business owners said they sponsored or donated their goods or services to local events.
  • In the same survey, 56 percent said they offered discounts to teachers, veterans and other groups.

How to get a small business loan

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1. Determine the kind of loan you need and lender you want to work with

There are a variety of loan products available to businesses, and which one that works best for you will depend on your needs. When looking at financing, it’s important to consider:

  • How much funding you need
  • How you plan to repay the loan
  • Your credit score, revenue and time in business
  • How quickly you need the funds

Shopping around for lenders during the loan search is also important, as you’ll be able to compare different loan terms, fees, interest and your qualification chances. 

Girl with glasses using a computer and mouse

2. Fill out the loan application.

When filling out a loan application, your lender will likely look at multiple factors to determine if you’re eligible for a business loan, including:

  • Time in business
  • Credit score and revenue
  • Your individual business experience 
  • Loan amounts

Your lender may also ask you for a business plan highlighting what your business does, a cash flow statement, your revenue projections and other important information about your business.

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3. After submitting your application

Your next steps will depend on whether you’re approved for a loan or not. If you’re approved, then you’ll receive the funds and be given a repayment plan to adhere to. The sooner you pay your loan off, the more you save, especially as some lenders offer early repayment discounts. 

If you’re denied a loan, you can ask the lender why, as they may have helpful feedback about why you were rejected that you can take into account for a future application. Otherwise, you can look into alternative financing options. 

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Types of business funding available

If you’re looking to finance your small business, there are a few ways you can get the funding you need.

What to know about the SBA

The Small Business Administration (SBA) is a federal agency tasked with promoting the growth and survival of small businesses in the United States. Founded in 1953, the agency conducts studies on the financial health and demographics of small businesses, offers education for entrepreneurs, helps promote government contracts with small businesses and offers funding for small businesses in the form of grants and loans.

  • SBA loans are loans that are guaranteed by the SBA, allowing business owners who may not meet the requirements for traditional loans to access affordable funding. 

    The loans are issued by banks and lenders approved by the SBA and are backed by the administration with federal funding so that, if the loan defaults, the lender is able to recover the money. They also come with capped interest rates, making them more affordable than many private loans. 

    On the downside, SBA loans can take longer to be approved for due to the extra requirements, making it a slower form of funding. They also have a high rejection rate compared to other types of loans. 

    While specific credit and revenue requirements vary depending on the loan size and type, in general, to qualify for an SBA loan, your business must:

    • Be operational.
    • Operate for profit.
    • Be located in the U.S.
    • Be 100% owned by U.S. citizens, U.S. Nationals or Lawful Permanent Residents.
    • Be small under SBA size requirements, according to industry.
    • Be in an eligible industry.
    • Not be eligible for private loans or lending products.
    • Meet credit and repayment requirements.

  • There are several types of SBA loans available, depending on your needs. Working with an SBA lender can help you narrow down which loan is best for you. 

    SBA loan type Requirements Purpose
    Standard SBA requirements Any eligible business purpose
    Standard SBA requirements; must be used for equipment or real estate Long-term financing for real estate and large equipment
    Standard SBA requirements; cannot be used for real estate Any eligible, lower-amount business purpose
    Standard SBA requirements Faster response times
    Business must be in a declared disaster area Business recovery after a natural or economic disaster
    Various Flexible funding, line-of-credit style

How to get a small business loan

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