Ohio entrepreneurs—from Cleveland startups and Columbus tech firms to rural small businesses—rely on SBA-backed loans to access affordable capital, fuel expansion, and weather unexpected challenges. Here’s a strategic overview of how Ohio business owners can effectively use SBA loans, including expert tips and local insights.
SBA 7(a) loans
Up to $5 million, flexible uses like working capital, equipment, or real estate purchase.
Longer repayment terms and competitive interest compared to conventional financing
SBA 504 loans
Designed for property and equipment investments.
Structured with a bank (50%), CDC (40%), and borrower (10%) contribution, offering long-term fixed rates
SBA Microloans & Community Advantage loans
Microloans up to $50K; Community Advantage up to $250K.
Easier and faster for startups, underserved businesses, and smaller projects
Ohio SBA providers funded over 3,420 businesses in fiscal year 2023, totaling $936 million
Of that amount, small-dollar loans under $150K saw a notable 46% increase since 2020, totaling $1.2 billion in FY2024
In 2023, banks issued $2.6B in small business loans under $100K in Ohio
Top lenders in Ohio include Huntington, Live Oak Bank, Bank of America, U.S. Bank, and TD Bank
Huntington Bank is Ohio's top SBA 7(a) lender and a nationally recognized leader .
Live Oak Bank rated best overall by analysts for SBA loans, though it operates online only
Maintain a credit score of 650+ and provide at least 2 years of clean financials .
Prepare a concise business plan and clear use-of-funds narrative
Gather vendor quotes, lease terms, and personal/business tax returns.
Prequalify with multiple lenders—SBA lenders, credit unions, and nonprofits—to compare offers.
Use the SBA’s Lender Match tool and reach out to local Small Business Development Centers (SBDCs) and SCORE chapters for free prep help
Partner lenders such as Huntington provide dedicated SBA experts and streamlined processes
Access to SBA-backed disaster relief loans—up to $2M with low rates and deferred payments—is available for droughts and other
Recent 7(a) rule changes have led to increased early defaults that may impact borrower credit if not managed carefully Barron's.
Compare SBA loans to conventional options—SBA offers better rates and terms, but underwriting can be slower .
Define funding need: startup capital, expansion, equipment, or recovery
Select loan type: 7(a), 504, microloan, or Community Advantage
Identify a preferred lender: bank, credit union, or community lender
Prepare docs: credit, financials, business plan, quotes
Prequalify & compare terms with multiple lenders
Submit application with complete documentation
Close the loan and strategically deploy funds
| Advantages | Considerations |
|---|---|
| Lower down payments, longer repayment terms | Full documentation required; processing time can be 4–8 weeks |
| Flexible use—including real estate, equipment | May require personal guarantees; early default risk if cash flow isn't managed well |
| SBA disaster loan options for emergencies | Changes in program rules can affect borrower obligations |
| Dedicated local support (SBDCs, SCORE) | Not the fastest—alternative lenders may be quicker for small loans |
In Knox County, a rural small business secured five SBA loans in 2024. Across Ohio, SBA-backed loans expanded overall by 46% since 2020, with small-dollar lending driving growth and increased support for diverse entrepreneurs
Ohio entrepreneurs have extensive access to SBA-backed capital—ranging from $50K microloans to $5M 7(a) and 504 loans. By choosing the right loan type, partnering with preferred local lenders, preparing thoroughly, and utilizing program supports, small businesses can effectively grow, innovate, and weather challenges.
Identify your financing goal—expansion, equipment, startup, or recovery
Choose the correct SBA product (7(a), 504, microloan)
Prequalify with two or more preferred lenders
Prepare clear documentation and comparison-ready offers
Apply and execute your growth strategy