Self Employed and Independent Contractor or Small Business

The SBA’s 7(a) program is the most popular SBA loan program, and you can borrow up to $350,000 with the 7(a) Small Loan.You may need to provide collateral for these loans.There are other SBA loans you may also be able to qualify for as an independent contractor or self-employed individual. These include the following:
  • The SBA Express loan. Loans of up to $350,000 on an accelerated schedule. The SBA will respond to your application within 36 hours.
  • The SBA Export Working Capital loan. Loans up to $5 million for working capital for businesses that can generate export sales. 
  • The Veterans Advantage program. Provides fee relief to veteran-owned businesses.

Eligibility Requirements for SBA Loans

To qualify for an SBA loan for self-employed workers, independent contractors, and/or small businesses, you must do the following:
  • Operate for profit (in other words, not run a nonprofit)
  • Do business in the US or its territories
  • Have reasonable owner equity to invest in your company
The SBA also requires that you have used other financial resources, such as personal assets, before you apply for an SBA loan.Depending on your specific lender, your personal and business credit scores may be considered, as well as other financial data, during the lending process.

How Much You Can Borrow with an SBA Loan

How much you can borrow with an SBA loan for self-employed workers depends on which program you apply for, as well as your finances. You might be interested in equipment financing or inventory financing.Most standard 7(a) loans have a cap of $5 million. As an independent contractor, however, you might decide to apply for a 7(a) Small Loan, which has a cap at $350,000.If you're in the export business, the Export Express loans allow you to borrow up to $500,000.