By James Fliss, Senior Vice President, National SBA Manager for KeyBank

CLEVELAND, OH / ACCESS Newswire / May 20, 2026 / When it comes to running a successful business, many people think it's a simple matter of offering a product or service customers are willing to spend money on and generating profits. Those who run businesses will tell you it's much more nuanced. If you really want to succeed, you need to have a plan for managing every aspect of your operations, especially your finances.

This is particularly true for small business owners who want to grow. Growth, whether purchasing a building, expanding operations, buying equipment, or opening a second location, eventually requires capital that goes beyond what cash flow alone can support.

Having the ability to access credit when your business is growing can be the difference between staying stagnant and moving forward. One of the most powerful and often misunderstood resources to do this is the U.S. Small Business Administration (SBA).

Common SBA loan options for growing businesses

When exploring a credit facility for business growth, talk with a banker. SBA loans are not issued by the federal government directly. They are made by participating banks and lenders and, with the exception of the 504 loan, partially guaranteed by the SBA. This reduces risk for these banks and lenders and helps some businesses qualify for financing they might not otherwise obtain. KeyBank offers SBA loan amounts up to $5 million. KeyBank has been designated as an SBA Preferred Lender for more than 20 years¹.

Understanding how SBA loans work, and how to prepare for them, can significantly improve a business owner's chances of loan application approval. For business owners looking to grow through expansion or real estate ownership, two SBA loan programs are particularly relevant: SBA 7(a) Loans and SBA 504 Loans.

The SBA 7(a) program is the most flexible and widely used SBA loan. It can be used for a broad range of business needs, including:

• Real Estate: Purchasing, constructing, or renovating owner-occupied commercial buildings and land.

• Working Capital: Managing day-to-day operations, inventory, and short-term cash flow needs.

• Equipment: Purchasing or installing new or used machinery, equipment, furniture, and fixtures.

• Business Acquisitions: Financing the purchase of an existing business or partnership buyouts.

• Debt Refinancing: Refinancing existing business debt to improve cash flow.

When real estate is included, loan terms may extend up to 25 years, helping to keep monthly payments manageable. This flexibility makes the 7(a) loan well‑suited for businesses that need a single financing solution to support multiple growth objectives at once.

The SBA 504 program is designed specifically for long‑term, fixed‑asset investments, such as buying or constructing commercial property or purchasing major equipment. These loans typically offer long repayment terms and fixed interest rates, which can provide predictability for growing businesses. The 504 program is commonly used when a company wants to transition from leasing space to owning its own facility, helping stabilize occupancy costs while building long‑term equity.

Both the SBA 7(a) and 504 programs require the business to occupy a majority of the commercial space being financed, reinforcing the SBA's mission of supporting operating businesses rather than real estate speculation.

Why SBA loans matter for local economic growth
From an economic development perspective, SBA loans play an important role in strengthening local communities. When small businesses invest in property, expand their workforce, or modernize operations, the impact extends well beyond the business itself. These investments support job creation, stabilize neighborhoods, and contribute to the overall vitality of regional economies, particularly in rural and small‑town markets.

For business owners, SBA financing can also provide a path to greater financial resilience. Owning a building rather than leasing space can protect against rent volatility, while longer loan terms can free up cash flow for hiring, marketing, and innovation.

How to position your business for SBA loan success

While SBA loans are designed to improve access to capital, they are still credit products that require preparation and discipline. Lenders look for evidence that a business is well‑managed, financially sound, and capable of repaying the loan.

1. Know the numbers. Business owners should have at least two to three years of financial statements readily available, including profit and loss statements, balance sheets, and cash flow reports. Lenders want to see consistent revenue, reasonable margins, and enough cash flow to support debt repayment.

2. Prepare a clear business plan. A strong business plan explains how the loan will be used and how it supports growth. For real estate purchases, this includes explaining why ownership makes sense for the business, how the space will be used, and how the investment supports long‑term operations.

3. Maintain strong personal and business credit. Personal credit is a financial resource. Lenders will look at an owner's personal credit history when they consider extending a loan or a line of credit to a business. Know what your credit score is, and if necessary, talk with your bank about taking it from good to excellent.

4. Build a professional support network. Accountants, attorneys, and SBA‑experienced lenders can all play critical roles in structuring a successful loan application. Their insight can help anticipate questions, avoid pitfalls, and ensure the financing aligns with the business's growth strategy.

Also, be prepared to invest alongside the lender. In fact, SBA loans typically require an equity contribution from the borrower. Demonstrating a willingness to invest personal or business capital into the project signals commitment and reduces risk.

Planning today for tomorrow's growth
SBA loans are not a quick fix, but for businesses thinking strategically about growth, they can be a powerful tool. By understanding available loan options and preparing thoughtfully in advance, small business owners may be able to position themselves to access capital that supports expansion, stability, and long‑term success.

For communities across the nation, thoughtful use of SBA financing helps ensure that local businesses remain competitive, resilient, and deeply rooted in the places they serve.

About the author: James Fliss is Senior Vice President, National SBA Manager for KeyBank. He can be reached at james_fliss@keybank.com.

¹Source: U.S. Small Business Administration (SBA) KeyBank has been designated as an SBA Preferred Lender since August, 1997

This is designed to provide general information only. All credit products are subject to collateral and/or credit approval, terms, conditions, availability and subject to change. ©2026 KeyCorp. All rights reserved. CFMA #260513-4464028

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SOURCE: KeyBank