Glossary · The loan itself
Alternative financing
In short
Any method of funding a business that isn't a traditional bank loan, such as crowdfunding, venture capital, or private debt. Buyers should consider these if conventional loans aren't an option.
What it means in a deal
If your deal doesn't fit SBA 7(a) criteria or you need funds quickly, you might explore alternative financing. This could include seller notes (beyond the SBA's standby rules), private investor debt, or even non-SBA conventional bank loans. Understand the higher costs and different terms often associated with these options.
Related terms
Common questions about Alternative financing
- What specific alternative base rates are permissible for variable rate 7(a) loans?
- What alternative base rate options are available for variable rate 7(a) loans?
- What are the current alternative base rate options for variable rate 7(a) loans?
- What are the current alternative base rate options available for variable rate 7(a) loans?
- What alternative credit analysis methods are acceptable for 7(a) Small Loans following the SBSS sunset?
- Which types of businesses are typically ineligible for SBA 7(a) financing?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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