Key Takeaways
- SBA 7(a) rates: prime + 2.25-2.75%; Revenue-based funding: higher effective rate but accessible without citizenship
- SBA terms: 7-25 years; Revenue-based: 12-36 months with revenue-flexible payments
- SBA decision time: 30-90 days; Bankable revenue-based: 48 hours
- SBA citizenship: 100% required as of March 2026; Bankable: zero citizenship requirements
- SBA collateral: often required; Bankable: revenue is the primary security—no hard collateral needed
Until March 1, 2026, non-citizen business owners could access SBA loans at rates that private lenders couldn't match. The SBA's federal guarantee enabled banks to lend at prime + 2.25-2.75%—significantly below market rates—with 10-25 year repayment terms that made monthly payments manageable even for large loan amounts.
That changed on March 1, 2026. Now, the honest comparison for non-citizen business owners is between SBA (blocked) and revenue-based funding (available). This guide makes that comparison on every dimension.
SBA vs. Alternatives: 2026 Comparison
| Option | Citizenship Required | Amount | Decision Time | Approval Rate |
|---|---|---|---|---|
| SBA 7(a) | Yes (100% US citizen/national) | Up to $5M | 30-90 days | Blocked for non-citizens |
| Traditional Banks | Usually required | Varies | 30-60 days | ~20% for non-citizens |
| CDFIs | No (limited capacity) | Up to $250K | 2-4 weeks | 50-60% |
| Bankable | No citizenship required | Up to $5M | 48 hours | 92% revenue-qualified |
Interest Rate and Cost Comparison
| Factor | SBA 7(a) | Bankable Revenue-Based |
|---|---|---|
| Base Rate | Prime rate (currently ~7.5%) | N/A (factor-rate model) |
| Lender Spread | Prime + 2.25-2.75% | Factor rate 1.15-1.35x |
| Effective APR | 9.75-10.25% | Variable by term and revenue |
| Origination Fees | SBA guarantee fee: 0.25-3.75% | Typically 2-4% origination |
| Citizenship Required | 100% US citizen (March 2026) | No |
Term and Repayment Comparison
| Factor | SBA 7(a) | Bankable Revenue-Based |
|---|---|---|
| Repayment Term | 7-10 years (working capital); 25 years (real estate) | 12-36 months |
| Payment Structure | Fixed monthly payment | Percentage of monthly revenue (flexes with business) |
| Early Payoff | Prepayment penalty may apply | Generally no prepayment penalty |
| Collateral | Personal guarantee + collateral for larger loans | Revenue-based; no hard collateral required |
Process and Speed Comparison
| Factor | SBA 7(a) | Bankable Revenue-Based |
|---|---|---|
| Application Time | 2-4 hours (extensive documentation) | 5 minutes online |
| Decision Time | 30-90 days | 48 hours |
| Funding Time | 2-3 months after approval | 5-7 business days after approval |
| Documentation | Extensive: tax returns, business plan, projections, personal financial statements | 3 months of business bank statements + EIN |
The Non-Citizen Bottom Line
For non-citizens blocked by the March 2026 SBA rule, the comparison is academic—SBA is unavailable regardless of its favorable terms. Revenue-based funding from Bankable provides the practical alternative: accessible within 48 hours, up to $5M, no citizenship requirement. The effective cost is higher, but access to capital at any price is better than access to zero capital at the best price. Check your Bankability Score to see what you qualify for.
Frequently Asked Questions
Yes. SBA loans have government-backed rates (prime + 2.25-2.75%) that private lenders cannot match. Revenue-based funding has a higher effective cost. However, SBA is now unavailable to non-citizens, making the cost comparison moot.
A factor rate is a multiplier applied to the funded amount. A factor rate of 1.25 on a $100K advance means you repay $125K total, with payments structured as a percentage of monthly revenue.
SBA 7(a) offers 7-25 year terms with fixed monthly payments. Revenue-based funding offers 12-36 month terms with payments that flex with monthly revenue—slower months mean lower payments.
If the SBA rule changes to allow non-citizens, yes. If you become a US citizen, yes. Otherwise, you would need to refinance into conventional financing when available.
Bankable: 48-hour decision, 5-7 day funding. SBA: 30-90 day decision, then 2-3 months to funding. Bankable is dramatically faster.
No. We evaluate your business based on its demonstrated revenue history, not projections or business plans.
Revenue-based repayment automatically adjusts—lower revenue means lower payments. Bankable works with business owners through revenue fluctuations rather than demanding fixed payments during slow periods.
We primarily evaluate business revenue rather than personal credit score. Non-citizen business owners with strong revenue but average credit can still qualify.
Up to 36 months, though most tranches are structured at 12-24 months. Businesses can access additional tranches as they repay.
Not currently—SBA loans are unavailable to non-citizens under the March 2026 rule. You can combine Bankable funding with CDFI loans and equipment financing.