Massachusetts small businesses—from Boston tech startups to Worcester manufacturers and Springfield service providers—can take advantage of a variety of SBA-backed loans. These loan programs are designed to help businesses secure funding for expansion, equipment purchases, real estate, and working capital.
This guide breaks down the top SBA loan options available in Massachusetts, their benefits, how to qualify, and tips for choosing the right lender.
SBA loans provide several advantages, including:
Low interest rates and long repayment terms (up to 25 years)
Flexible use of funds for working capital, real estate, refinancing, and equipment
A government guarantee that reduces lender risk
Programs tailored for underserved communities, startups, and growing enterprises
This is the most popular SBA loan program.
Uses: Real estate, payroll, inventory, equipment, debt refinancing
Maximum Loan Amount: $5 million
Terms: Up to 10 years for most uses; up to 25 years for real estate
Best For: General business purposes, expansions, or new ventures
Massachusetts businesses often work with local SBA-preferred lenders such as Eastern Bank, Rockland Trust, TD Bank, and Enterprise Bank to streamline applications.
Designed for asset-heavy projects, the SBA 504 loan is ideal for business owners seeking long-term, fixed-rate financing.
Uses: Land or building purchases, facility improvements, and large equipment
Loan Structure: 50% bank lender, 40% Certified Development Company (CDC), 10% borrower
Maximum Loan Size: $5.5 million
Terms: Typically 10–25 years
Best For: Real estate acquisition or construction, manufacturing equipment
One of the most active CDCs in Massachusetts is CDC New England, known for supporting large-scale development projects.
These small-dollar loans help startups and small businesses fund early operations.
Uses: Equipment, supplies, inventory, marketing, and working capital
Maximum Loan Amount: $50,000
Average Loan Size: Around $13,000
Terms: Up to 6 years
Best For: Early-stage businesses, small upgrades, and underserved entrepreneurs
Microloans are delivered through local nonprofit intermediaries and Community Development Financial Institutions (CDFIs).
This program supports businesses in underserved areas by offering streamlined access to capital.
Loan Amount: Up to $250,000
SBA Guarantee: Up to 85% for loans up to $150,000; 75% for loans above that
Eligibility: Must operate in underserved markets and work with approved mission-based lenders
Best For: Women-, minority-, and veteran-owned businesses or businesses in low-income areas
Define your funding need (e.g., real estate, equipment, working capital)
Choose the appropriate SBA loan product
Gather key documents: business plan, financials, and projections
Select a preferred SBA lender or CDC in Massachusetts
Submit your application
Complete underwriting and review
Close the loan and access your funds
Here’s a look at some of the most active SBA lenders and community loan providers in the state:
Eastern Bank – Preferred SBA lender with strong local presence
Rockland Trust – Known for fast 7(a) processing
TD Bank – Offers both 7(a) and 504 options statewide
Enterprise Bank – Provides 7(a), 504, and microloan support
BankFive – Offers Express loans for smaller needs
CDC New England – Specializes in 504 real estate and equipment loans
Massachusetts CDFIs – Deliver Microloans and Community Advantage funding to underserved businesses
Recent updates have improved accessibility for small business owners:
SBA 504 loans now include more refinancing options
Non-bank fintech lenders can now issue SBA 7(a) loans
Greater transparency and data tracking helps underserved applicants receive fairer access
These changes mean faster approvals and more flexible options—especially for new or underserved entrepreneurs.
| Loan Type | Pros | Cons |
|---|---|---|
| SBA 7(a) | Large loan amounts, broad uses, low interest | Requires strong financials and collateral; slower to fund |
| SBA 504 | Fixed rates, great for real estate and heavy equipment | Involves coordination with CDC and bank |
| Microloans | Fast, flexible, great for startups | Loan sizes limited to $50K or less |
| Community Advantage | Ideal for underserved communities, easier requirements | Only available through certain lenders |
Maintain a personal credit score of at least 680
Keep 2+ years of clean, well-documented financials
Create a strong business plan with clear use-of-funds
Get vendor quotes for equipment or property upgrades
Prequalify with multiple SBA lenders
Work with local advisors like SCORE, SBDC, or your local SBA office
Business: GreenTech Supply Co., Boston
Goal: Expand into warehouse and delivery services
Financing Strategy:
Secured a $1.25 million SBA 504 loan to purchase a facility
Used a $100,000 7(a) loan for staffing and marketing
Partnered with a local CDC and SCORE mentor for guidance
Outcome:
35% year-over-year growth
Added 12 employees
Expanded to regional distribution within 18 months
SBA Massachusetts District Office – Offers training, lender connections, and application help
Massachusetts Small Business Development Center (MSBDC) – Free business advising
SCORE Boston – Volunteer mentors who help entrepreneurs build strong loan applications
CDFIs – Provide alternative access to SBA microloans and technical assistance
Massachusetts businesses—from early-stage startups to established companies—can find significant value in SBA loan programs. With low rates, long repayment terms, and accessible funding pathways, these loans support sustainable business growth across every industry.
Whether you need $20,000 for marketing or $2 million for a real estate project, there’s an SBA solution to meet your needs.
Choose the SBA loan product that best matches your business goal
Contact a local SBA-preferred lender or CDC for a prequalification
Gather your documents and submit your application
Leverage local resources like SCORE or SBDC to strengthen your application
Secure funding and grow your business with confidence