Best Large Business Loans ($500K+)

Introduction

Loans above $500K require stronger financials, more documentation, and experienced lenders. The best options depend on whether you need real estate, equipment, working capital, or acquisition financing.

1. SBA 7(a) Large Loan

For loans $500K–$5M, SBA 7(a) Large provides government-backed rates and terms unavailable from conventional sources. **Pros:** Government-backed rate cap; Up to $5M; Long repayment terms **Cons:** 90-day underwriting; Personal guarantee + collateral required **Best for:** Growing businesses needing $500K–$5M for acquisitions, real estate, or major expansion. **Terms:** $500K–$5M; 10–25 years; prime + 2.25–4.75%

2. Commercial Real Estate Loan

For real estate above $1M, conventional commercial mortgages from banks or CMBS lenders offer competitive terms. **Pros:** Matches real estate collateral; Large amounts (no practical ceiling); CMBS for non-recourse options **Cons:** 20–35% down payment; DSCR and appraisal requirements **Best for:** Businesses purchasing commercial property outright or refinancing an existing mortgage. **Terms:** $500K–$50M+; 15–30 years; 6–9% (conventional)

3. Bank Term Loan ($500K+)

Established businesses with strong balance sheets and bank relationships can access term loans above $500K at prime-adjacent rates. **Pros:** Competitive rates for best customers; Flexible use of funds; Full banking relationship **Cons:** Strict qualification thresholds; Collateral typically required **Best for:** Profitable businesses with multi-year bank relationships and clean financials. **Terms:** $500K–$10M; 5–10 years; prime + 1–3%

4. Private Credit / Direct Lending

Non-bank private credit funds lend $1M–$50M to middle-market businesses at higher rates than banks but with more flexible structures. **Pros:** Higher leverage available; Faster than bank approval; Creative structures **Cons:** Higher rates (10–16%); Origination fees (1–3%) **Best for:** Businesses needing $1M+ quickly or with complex structures that banks will not touch. **Terms:** $1M–$50M; 3–7 years; 10–16% floating

5. SBA 504 ($1M+)

For large real estate or equipment purchases, SBA 504 provides fixed-rate financing up to $5.5M with only 10% down. **Pros:** Fixed rate for 20 years; 10% down payment only; Up to $5.5M **Cons:** Fixed assets only; Complex two-lender structure **Best for:** Businesses making large fixed-asset investments wanting maximum leverage at minimum down payment. **Terms:** $500K–$5.5M; 10–20 years; fixed SBA debenture rate

Frequently asked questions

What qualifications do I need for a $1M business loan?

Typically 700+ personal credit, 3+ years in business, $500K+ annual revenue, and sufficient collateral or an SBA guarantee.

Are there business loans over $5M?

Yes — conventional bank loans, CMBS, and private credit funds regularly lend $5M–$100M+ to qualified businesses.

How long does it take to get a large business loan?

SBA loans take 60–90 days. Bank commercial loans take 30–60 days. Private credit can close in 2–4 weeks.