SBA vs CDFI vs Online Lenders: Comparison Table

Three of the most common paths for small business financing work very differently. Use this table to decide where to start.

	SBA loan (7(a), 504, Express)	CDFI loan	Online lender
Who lends	Banks, credit unions, CDCs with an SBA guarantee	Mission-driven community lenders	Fintech companies
Owner eligibility	All owners U.S. citizens or nationals (2026 rule)	CDFI’s own rules; many serve green card and ITIN holders	Lender’s own rules
Amounts	Up to $5 million (7(a)); $500,000 (Express)	Usually smaller	Small to mid-size
Speed	Weeks to months	Weeks	Days
Cost	Lowest; rates capped by the SBA	Moderate	Highest
Terms	Up to 10–25 years	Usually a few years	Months to a few years
Credit	Many lenders want ~650–680+	More flexible	Flexible, priced for risk
Paperwork	Most	Moderate	Least
Extras	—	Coaching, often in Spanish	Speed and convenience

Which one fits you?

• All owners are citizens or nationals, you have good credit and time to wait: start with an SBA loan. Use our lender finder.
• An owner has a green card or ITIN, or you are very new: start with a CDFI.
• You need money this week for a short, profitable opportunity: consider an online lender, and calculate the full cost.
• You are buying equipment: also compare equipment financing.

Our recommendation

Most owners should try the cheapest path they qualify for first, and use expensive money only as a short bridge. Our quiz routes you to the right path based on your answers.

Use our interactive loan options tool to rank these for your situation.

Frequently asked questions

Which is cheapest: SBA, CDFI or online lender?

SBA loans are usually cheapest, CDFIs are moderate and online lenders are usually the most expensive.

Which option works if an owner has a green card?

A CDFI is often the best first call, since SBA loans now require all owners to be U.S. citizens or nationals.

Which option is fastest?

Online lenders, often in days. SBA loans take weeks to months.