Friday, June 12, 2026New York · LondonSOFR 5.32Prime 8.50
Capital Desk · OpenVol. VII · No. 26
MCA vs SBA Loan.
An MCA buys a slice of your future revenue at a fixed factor rate; an SBA 7(a) is a bank term loan partially guaranteed by the federal government. They sit at opposite ends of the speed/cost spectrum — and a lot of borrowers should be looking at the middle.
| Dimension | SBA 7(a) Loan | Summit |
|---|---|---|
| Pricing | Prime + 2.75–4.75% (~11–13% APR today) | Factor 1.15–1.49 (~30–80% APR) |
| Loan range | $50K – $5M | $10K – $2M |
| Time to fund | 30–90 days | 24–72 hours |
| Term | 5–25 years | 3–18 months |
| Credit minimum | 680+ FICO, strong PFS | 500+ FICO, 3+ months bank deposits |
| Collateral / PG | Personal guarantee + collateral on loans >$25K | PG only, no hard collateral |
| Best for | Real estate, partner buyouts, long-cycle growth | Bridge cash, payroll gaps, inventory, fast opportunity capital |
Verdict
If your file qualifies for SBA and you can wait 60 days, take SBA — the cost difference is enormous. If you need money this week or your file won't survive bank underwriting, an MCA bridges you. A broker desk will tell you honestly which category you're in and price the alternatives (term, LOC, equipment) in between.