How Michigan's Highest-Value Industries Secure SBA Financing in 2026: A Complete Guide for Business Owners
If you own a manufacturing plant in Sterling Heights, operate a chain of urgent care clinics in Grand Rapids, or run a successful excavation company serving Metro Detroit, you already know that accessing growth capital in Michigan isn't as simple as walking into your local bank.
The reality? Michigan's most valuable business sectors—from tool & die shops to dental practices, from concrete contractors to automotive care facilities—face a frustrating paradox: They generate strong revenue, maintain real operations, and represent the backbone of Michigan's $600 billion economy. Yet when it comes to securing the $500K to $5M in financing needed to acquire a competitor, purchase commercial real estate, or fund a major expansion, most business owners hit the same wall.
Chase says no. Huntington says no. Even your longtime community bank—the one that's handled your business checking for a decade—says no.
Here's what 20+ years facilitating SBA loans for Michigan businesses has taught us: Getting approved for SBA financing has almost nothing to do with whether your business qualifies. It has everything to do with matching your specific business profile with the right lender from a network most Michigan business owners don't even know exists.
This comprehensive guide breaks down exactly how Michigan's most capital-intensive industries—the ones building real value, creating jobs, and driving economic growth—can successfully navigate SBA financing in 2026.
Why Michigan's High-Value Industries Need SBA Loans (And Why Traditional Banks Keep Saying No)
The Michigan Business Financing Gap
Michigan's economy runs on businesses exactly like yours. According to the latest SBA data:
886,557 small businesses operate in Michigan, representing 99.6% of all Michigan businesses. These businesses employ 1.8 million Michiganders—44.7% of the state's workforce. In Q2 2025 alone, $200+ million in SBA loans were approved with an average loan size of $526,749 and an average interest rate of 9.6% (down from 10.5% in 2024).
Yet here's the disconnect: The industries creating the most value and employing the most Michigan workers face the highest barriers to traditional financing.
The Real Reason Banks Decline Your SBA Loan Application
Let's be brutally honest about what's happening when you apply for SBA financing at major banks:
Big Banks Cherry-Pick Only "Perfect" Deals
Chase, Wells Fargo, PNC, and other mega-banks want 780+ credit scores (yours is 690—completely financeable, but not "perfect"), 5+ years of flawless financials (you had one rough year during COVID), massive collateral cushion (your equipment is valuable but specialized), and industries they "understand" (they don't understand tool & die, remediation, or managed IT services).
They turn down 8 out of 10 SBA applications. That 20% approval rate isn't because businesses don't qualify—it's because big banks only want the easiest deals.
Community Banks Lack Specialized Lending Capacity
Your local Michigan credit union wants to help. Their loan officer genuinely believes in your business. But they have limited capital to deploy on larger loans ($1M+), don't specialize in complex SBA structures (504 loans, business acquisitions, multi-property deals), can't compete with specialized lenders' rate pricing, and often lack experience in capital-intensive industries like manufacturing, healthcare, or government contracting.
Most Business Owners Waste 60-90 Days Going Bank-to-Bank
The typical Michigan business owner contacts 15-20 different lenders, fills out the same application repeatedly, submits the same documents over and over, gets declined for reasons they don't understand, and gives up, thinking they "don't qualify."
The truth: You probably do qualify. You just haven't found the right lender for your specific situation.
The Industries We Specialize In: Michigan's High-Value Business Sectors
Over two decades facilitating $1+ billion in business financing, we've developed deep expertise in Michigan's most capital-intensive and valuable industries. These aren't businesses looking for $50K working capital lines. These are established operations seeking $500K to $5M+ to fund meaningful growth.
Manufacturing & Industrial Operations
Industries We Serve: Automotive parts suppliers and tier 1/2/3 manufacturers, tool & die shops, metal fabrication and machining, injection molding and plastics manufacturing, CNC machining operations, industrial equipment manufacturing, food processing and packaging, and custom manufacturing operations.
Why SBA Loans Work for Michigan Manufacturers:
Michigan manufacturing businesses face unique financing challenges. Your equipment is highly specialized—a $2M injection molding machine or custom CNC equipment has tremendous value to your operation but limited value to a bank's liquidation department. Traditional lenders don't understand this. SBA lenders who specialize in manufacturing do.
Recent Success Stories: $2.8M SBA 504 loan for Sterling Heights metal fabricator purchasing 45,000 sq ft facility + new CNC equipment. $1.4M SBA 7(a) loan for Grand Rapids injection molding company acquiring competitor. $3.2M USDA B&I loan for rural Michigan food processing expansion creating 28 jobs.
Common Use Cases: Acquiring established manufacturing businesses, purchasing industrial facilities (50,000+ sq ft operations), financing specialized equipment ($500K+ machinery), consolidating multiple manufacturing locations, and funding expansion into new product lines.
Medical & Dental Practices
Industries We Serve: Multi-provider physician practices (family medicine, internal medicine, specialty practices), dental practices and dental service organizations (DSOs), urgent care clinics, surgical centers and specialty clinics, veterinary practices and animal hospitals, physical therapy and rehabilitation centers, chiropractic offices, and home health care agencies.
Why SBA Loans Work for Michigan Healthcare Providers:
Healthcare practices generate predictable revenue through established patient bases and insurance contracts. Yet traditional banks struggle to finance healthcare acquisitions due to goodwill and intangible asset valuations, complex partnership structures, equipment with limited resale value, and regulatory concerns they don't understand. SBA lenders specializing in healthcare understand practice valuations, cash flow analysis, and industry-specific risk factors.
Recent Success Stories: $1.8M SBA 7(a) loan for Ann Arbor dental practice acquisition (4-provider DSO expansion). $950K SBA 504 loan for Lansing urgent care purchasing 8,000 sq ft medical building. $2.1M SBA 7(a) loan for veterinary hospital acquisition in Oakland County. $1.2M SBA loan for multi-location physical therapy practice expansion.
Common Use Cases: Physician practice acquisitions and buy-ins, dental practice purchases or partner buyouts, urgent care clinic real estate purchases, veterinary hospital acquisitions, medical office building purchases (owner-occupied), and equipment financing (imaging equipment, surgical equipment).
Construction & Commercial Contracting
Industries We Serve: General contractors (commercial and residential), excavation and site work contractors, concrete contractors and flatwork specialists, HVAC installation and service companies, plumbing contractors, electrical contractors, roofing companies, restoration, remediation, and environmental cleanup, and landscaping and hardscaping companies.
Why SBA Loans Work for Michigan Contractors:
Construction and contracting businesses operate with lumpy cash flow—large projects create seasonal revenue spikes, but banks want to see consistent monthly deposits. Traditional lenders view this as "risky." SBA lenders who understand contracting know how to analyze project-based cash flow, bonding capacity, and backlog.
Recent Success Stories: $1.6M SBA 7(a) loan for Metro Detroit excavation company acquiring competitor with $8M annual backlog. $2.4M SBA 504 loan for Grand Rapids HVAC company purchasing 30,000 sq ft facility + fleet expansion. $890K SBA 7(a) loan for concrete contractor buying out retiring partner. $3.1M USDA B&I loan for restoration company expanding to three Michigan markets.
Common Use Cases: Acquiring established contracting businesses, purchasing commercial buildings and shop facilities, equipment financing (excavators, dump trucks, specialized equipment), working capital for large project deposits and material costs, fleet expansion and replacement, and partner buyouts.
Automotive Services & Dealerships
Industries We Serve: Auto dealerships (new and used), automotive repair and service centers, collision repair and body shops, car washes (automatic, self-serve, and express), tire and wheel shops, fleet maintenance operations, and quick lube and oil change franchises.
Why SBA Loans Work for Michigan Automotive Businesses:
Michigan's automotive sector extends far beyond the Big Three. The state has 2,200+ auto dealerships and thousands of automotive service businesses. Real estate requirements are substantial—most dealerships and large service centers need $1M to $5M+ for facilities. SBA 504 loans offer fixed-rate, long-term financing that conventional lenders can't match for automotive real estate.
Recent Success Stories: $4.2M SBA 504 loan for used car dealership purchasing 3-acre lot with 15,000 sq ft showroom. $1.1M SBA 7(a) loan for car wash acquisition (express tunnel wash, $850K revenue). $2.8M SBA 7(a) loan for collision center acquisition with two Metro Detroit locations. $750K SBA loan for automotive service center expansion.
Common Use Cases: Auto dealership acquisitions, car wash purchases (high ROI, strong cash flow), collision center real estate and equipment, service center facility purchases, and multi-bay shop expansions.
Fuel & Convenience Retail
Industries We Serve: Gas stations with convenience stores, standalone convenience stores, liquor stores, party stores, and truck stops.
Why SBA Loans Work for Michigan Fuel & Convenience Operators:
Michigan's 5,000+ gas stations and convenience stores face unique financing challenges: environmental concerns (UST compliance), franchise restrictions (branded vs. unbranded), high real estate costs, and equipment requirements (fuel pumps, canopies, coolers). Traditional banks often decline these deals due to environmental liability concerns. SBA lenders with gas station experience know how to structure deals with proper Phase I/II environmental assessments and UST insurance.
Recent Success Stories: $2.9M SBA 7(a) loan for 2-location gas station/c-store acquisition in Oakland County. $1.6M SBA 7(a) loan for liquor store acquisition (high-traffic location, $2.4M revenue). $850K SBA 504 loan for party store real estate purchase. $3.4M SBA loan for multi-unit convenience store operator expansion.
Common Use Cases: Gas station acquisitions (branded and unbranded), liquor store purchases, multi-unit convenience store expansion, real estate purchases for existing operations, and equipment upgrades and modernization.
Professional Services
Industries We Serve: Law firms, accounting and tax practices, engineering firms, architecture firms, management consulting, managed IT service providers (MSPs), marketing and advertising agencies, insurance agencies, financial advisory practices, and property management companies.
Why SBA Loans Work for Michigan Professional Services:
Professional service firms generate strong cash flow with minimal inventory and equipment requirements. However, traditional banks struggle to finance these acquisitions because value is primarily goodwill and client relationships, there are no hard assets for collateral, client concentration concerns exist, and non-compete and transition dependencies matter. SBA lenders specializing in professional services understand how to analyze recurring revenue, client retention, and partner transition plans.
Recent Success Stories: $1.9M SBA 7(a) loan for Detroit law firm acquiring 3-attorney practice. $1.4M SBA 7(a) loan for managed IT service provider acquisition (300+ business clients). $2.2M SBA 7(a) loan for accounting practice acquisition (CPA firm merger). $950K SBA loan for insurance agency expansion.
Common Use Cases: Partner buyouts and succession planning, acquiring books of business or entire practices, real estate purchases for professional office space, multi-location expansion, and technology infrastructure investments.
Hospitality, Fitness & Personal Services
Industries We Serve: Franchise restaurants (QSR and full-service), independent restaurants and breweries, fitness centers and gyms, pet care facilities (boarding, daycare, grooming), RV parks and campgrounds, self-storage facilities, and funeral homes and crematories.
Why SBA Loans Work for These Michigan Service Industries:
Service-based businesses with real estate components are ideal SBA borrowers because they have predictable recurring revenue (memberships, contracts), real property as collateral, established customer bases, and franchise systems with proven models.
Recent Success Stories: $2.7M SBA 7(a) loan for multi-unit franchise restaurant expansion (3 locations). $1.8M SBA 504 loan for fitness center purchasing 12,000 sq ft facility. $2.4M SBA loan for pet boarding facility real estate and construction. $3.8M SBA 504 loan for self-storage development (climate-controlled, 60,000 sq ft). $1.6M SBA loan for funeral home acquisition.
Common Use Cases: Franchise purchases and multi-unit expansion, restaurant real estate acquisitions, fitness center equipment and facility financing, self-storage development and acquisition, and RV park and campground purchases.
Agriculture & Rural Businesses
Industries We Serve: Production farms (row crops, livestock, dairy), agricultural processing and packing, farm equipment dealerships, grain elevators and storage facilities, agribusiness services, rural manufacturing, and broadband and telecommunications (rural deployment).
Why USDA B&I Loans Work for Rural Michigan:
Most Michigan business owners don't realize that 97% of Michigan qualifies as "rural" under USDA guidelines. If you're outside the cores of Detroit, Grand Rapids, Lansing, or Ann Arbor, you likely qualify for USDA Business & Industry loans offering higher loan amounts ($2M to $25M vs. $5M SBA maximum), longer terms (up to 30 years for real estate), job creation incentives (favorable terms for businesses creating Michigan jobs), and eligibility across 97% of Michigan (most of the state qualifies).
Recent Success Stories: $8.5M USDA B&I loan for agricultural processing facility expansion (120 jobs created). $4.2M USDA loan for rural broadband deployment. $3.6M USDA loan for farm equipment dealership acquisition. $2.8M USDA loan for grain elevator expansion.
Common Use Cases: Agricultural processing expansions, farm equipment and machinery, rural manufacturing facilities, food processing and cold storage, broadband infrastructure, and large-scale land and facility purchases.
Understanding SBA Loan Programs: Which One Fits Your Michigan Business?
Michigan businesses have three primary government-backed financing options. Understanding which program aligns with your needs determines your approval odds and ultimate loan terms.
SBA 7(a) Loans: Maximum Flexibility for Michigan Businesses
Best For: Business acquisitions (buying an existing company or franchise), mixed-use financing (real estate + equipment + working capital in one loan), working capital and inventory, partner buyouts, debt refinancing to improve cash flow, and smaller real estate purchases (under $2M).
Loan Details: Amount up to $5,000,000. Terms up to 25 years (real estate) or 10 years (equipment/working capital). Down payment typically 10-15%. Rates currently 10-12% (Prime + 2.5% to 4.5%). Structure is single lender with faster closing (45-60 days typical).
Why Michigan Businesses Choose 7(a): Most versatile—use for virtually any legitimate business purpose. Faster closing than 504 (one lender instead of two). Can include working capital (504 cannot). Ideal for business acquisitions where you need flexibility.
Michigan Industries Using 7(a) Most: Medical/dental practices (acquisitions), professional services (law firms, accounting practices, MSPs), manufacturing companies (business purchases), automotive services (dealerships, repair shops), contractors (equipment + working capital), and retail/convenience (gas stations, liquor stores).
Example 7(a) Deal: Sterling Heights Manufacturing Company secured a $2,200,000 loan to acquire a competitor (tool & die shop with $3.5M revenue). Structure included $1,800,000 for business purchase plus $400,000 working capital. Terms were 10 years at 10.5% rate with 15% down payment. Timeline was 52 days to funding.
SBA 504 Loans: Fixed-Rate Real Estate & Equipment Financing
Best For: Commercial real estate purchases (owner-occupied), building construction or major renovation, large equipment purchases ($500K+), manufacturing facility expansions, and long-term fixed rate (eliminate rate risk).
Loan Details: Amount up to $5,000,000 (up to $5,500,000 for manufacturing/energy projects). Terms up to 25 years (real estate) or 10-20 years (equipment). Down payment as low as 10% (vs. 20-30% conventional). Rates fixed for life of loan, currently 5-7% (SBA portion). Structure is two loans—50% conventional, 40% SBA CDC, 10% down payment.
Why Michigan Businesses Choose 504: Lowest down payment at 10% vs. 15-20% for 7(a) or 25-30% conventional. Fixed rate locked in for 10-25 years (no rate risk). Best for large real estate because structure saves money on deals over $1M. Preserves working capital because lower down payment frees up cash for operations.
Michigan Industries Using 504 Most: Manufacturing (facility purchases, equipment), healthcare (medical office buildings, urgent care facilities), contractors (shop/warehouse facilities), automotive (dealerships, service centers), self-storage and RV parks, and any business purchasing $1M+ owner-occupied real estate.
Example 504 Deal: Grand Rapids Dental Practice secured $1,800,000 to purchase an 8,000 sq ft medical office building. Structure was $900K bank loan plus $720K SBA CDC loan plus $180K down (10%). Terms were 25 years at 6.2% fixed (SBA portion) and 8.5% (bank portion). Monthly payment of $11,400 compared to $14,800 for conventional at 7.5% with 25% down. Timeline was 68 days to funding.
504 vs. 7(a) Decision Guide: When choosing between programs, consider primary use (business acquisition and working capital favor 7(a) while real estate and large equipment favor 504), loan size (under $2M favors 7(a) while over $1M favors 504), rate preference (variable rate that may drop favors 7(a) while fixed rate with no risk favors 504), speed priority (faster closing of 45-60 days favors 7(a) while can wait 60-90 days favors 504), down payment (10-15% acceptable favors 7(a) while want lowest possible at 10% favors 504), and working capital (need it included favors 7(a) while don't need it favors 504).
USDA Business & Industry Loans: Larger Loans for Rural Michigan
Best For: Larger loan amounts ($2M to $25M), rural Michigan locations (97% of the state qualifies), businesses creating jobs, manufacturing and processing operations, and agricultural-related businesses.
Loan Details: Amount from $2,000,000 to $25,000,000. Terms up to 30 years (real estate) or 15 years (equipment). Guarantee up to 80% (allows lenders to take more risk). Rates negotiable, typically 8-11%. Eligibility is rural areas with populations under 50,000.
Why Michigan Businesses Choose USDA: Much larger loans because SBA caps at $5M while USDA goes to $25M. Most of Michigan qualifies outside Detroit/Grand Rapids/Ann Arbor cores. Job creation incentives provide favorable terms for businesses hiring. Flexible uses include real estate, equipment, working capital, and refinancing.
Michigan Cities That Qualify for USDA: Most of Michigan outside the immediate cores of Detroit Metro (but many suburbs qualify), Grand Rapids, Ann Arbor, Lansing, and Flint. Counties with extensive USDA eligibility include virtually all rural counties including Monroe, Livingston, Lenawee, Jackson, Calhoun, Kalamazoo (partial), Muskegon, Ottawa (partial), Kent (partial), Macomb (partial), Oakland (partial), and all of Northern Michigan and the Upper Peninsula.
Michigan Industries Using USDA Most: Food processing and agricultural manufacturing, rural manufacturing operations, large-scale contractors and excavation, broadband and telecommunications, farm equipment dealerships, agribusiness services, and large industrial operations.
Example USDA Deal: Monroe County Manufacturing Company secured $6,800,000 to acquire a 120,000 sq ft industrial facility plus equipment for automotive parts production. The project created 45 full-time positions. Structure was 80% USDA guarantee with 20% lender risk. Terms were 25 years at 9.2% rate. Timeline was 78 days to funding.
Do You Qualify? SBA Loan Requirements for Michigan Businesses
Most established Michigan businesses in capital-intensive industries qualify for SBA financing. Here's what lenders look for:
Basic Qualification Criteria
Time in Business: Minimum of 2+ years under current ownership. Preferred is 3+ years (stronger approval odds). Exceptions exist for startups and franchises with strong parent company support.
Annual Revenue: For 7(a) Loans, $250,000+ (varies by loan size and purpose). For 504 Loans, $500,000+ (for real estate purchases). For USDA B&I, $1,000,000+ (for larger rural projects).
Personal Credit Score: Minimum of 650 (some flexibility with strong compensating factors). Preferred is 680+. Ideal is 700+. If your score is 620-650, we can still work with you if you have strong business cash flow, significant time in business (5+ years), large down payment (20%+), valuable collateral, and industry expertise.
Cash Flow & Profitability: Business generates sufficient cash flow to service debt. Debt Service Coverage Ratio (DSCR) of 1.25x or higher preferred. Positive net income (or path to profitability for acquisitions).
Down Payment: SBA 7(a) requires 10-15% of project costs. SBA 504 requires 10% of project costs. USDA requires 10-20% depending on project.
Collateral: Lenders take security interest in assets purchased with loan proceeds. Additional collateral may be required (business assets, real estate). Personal guarantees required from owners with 20%+ equity.
Industry-Specific Considerations
Manufacturing & Industrial: Equipment appraisals for specialized machinery, environmental assessments (Phase I/II if applicable), customer concentration analysis, and order backlog and contract documentation.
Medical & Dental: Practice valuation (typically 4-6x EBITDA for dental, 3-5x for medical), payor mix analysis (insurance vs. cash pay), provider credentialing and contracts, and patient records and retention analysis.
Construction & Contracting: Bonding capacity, project backlog documentation, license verification, safety record (OSHA, workers comp), and equipment list and condition.
Automotive & Fuel: Environmental assessments (Phase I required, Phase II if concerns), UST compliance and insurance (for gas stations), franchise agreements (if applicable), and EPA and state environmental compliance.
Professional Services: Client concentration (no single client over 15-20% ideal), recurring revenue analysis, partner/key person transition plans, and non-compete agreements.
Common Reasons Businesses Come to Us After Bank Declines
You've been turned down by Chase, Huntington, or your local bank. That doesn't mean you don't qualify—it means you need a different lender. We successfully fund businesses declined for credit score in the 650-680 range (not "perfect" but completely financeable, and we match you with lenders who understand compensating factors), business less than 5 years old (2-4 years in business with strong cash flow, franchise operators with parent company support, and businesses with experienced ownership), industry the bank doesn't understand (tool & die shops, injection molding, specialty manufacturing, managed IT services and technology businesses, restoration and environmental services, and veterinary practices and animal hospitals), complex deal structure (multi-property acquisitions, partnership buyouts with seller financing, business + real estate + working capital in one transaction, and companies with multiple entities), and "unusual" collateral (specialized manufacturing equipment, franchise intangibles, professional practice goodwill, and fleet equipment and vehicles).
The key: Different lenders have different credit boxes, industry focuses, and risk appetites. Your job isn't to change your business—it's to find the lender whose criteria your business fits. That's our specialty.
Why Choose LVRG Business Funding for Your Michigan SBA Loan
We're Not Another Bank. We're Your Access to 25+ Specialized Lenders.
Most Michigan business owners approach SBA financing the wrong way: They contact banks one at a time, fill out endless applications, submit documents repeatedly, and get declined without understanding why. Here's the problem: Each bank specializes in different industries, loan types, and credit profiles. Chase might decline your tool & die shop acquisition, but a specialized manufacturing lender would approve it immediately. Huntington might say no to your dental practice purchase, but a healthcare-focused SBA lender sees it as a perfect deal. You don't need one bank. You need the RIGHT bank for YOUR specific situation.
What Makes Us Different
20+ Years Facilitating Michigan Business Financing: We have facilitated $1+ billion in business financing for 10,000+ businesses served nationwide with deep expertise in Michigan's key industries. We are based in Metro Detroit and serve all of Michigan.
Access to 25+ Specialized SBA Lenders: We maintain direct relationships with national SBA lenders with the best rate pricing, regional banks with local market expertise, community development financial institutions (CDFIs), specialty lenders focused on specific industries (manufacturing, healthcare, contractors, etc.), and USDA-approved lenders for rural Michigan. You get lenders you cannot access on your own. Many of our partner lenders don't accept direct applications—they only work through experienced brokers who pre-underwrite and package deals correctly.
Complete Pre-Underwriting & File Packaging: This is where most business owners waste months. They submit incomplete applications, miss critical documentation, or present their business in ways that trigger declines. We handle everything including comprehensive financial analysis and cash flow projections, complete loan package assembly and presentation, pre-underwriting before submission (identify and address issues early), and professional presentation that positions your business optimally. Result: No wasted time with lenders who'll decline you. Faster approvals. Better terms.
White-Glove Advocacy from Application to Funding: Once we submit your loan, we're your dedicated advocate with the lender, we handle every document request, every question, every revision, we manage the entire SBA approval and closing process, and we keep you updated at every stage. You focus on running your business. We handle the financing.
Exclusive Pricing You Can't Get Direct: Because of our volume and long-standing relationships, we've secured special rate pricing that business owners cannot access going direct to banks. You get lower rates than going bank-to-bank, more favorable terms and structures, faster funding timelines, and access to specialized programs most banks don't offer.
All at Zero Cost to You: Here's what surprises most Michigan business owners: You pay us nothing. Zero. Not a dollar. We're compensated directly by SBA lenders through standard broker fees built into every SBA loan—whether you use a broker or not. Banks pay us for bringing them qualified deals. You get better pricing than going direct, expert packaging and guidance, access to 25+ specialized lenders, and white-glove service from application through funding, all at absolutely no cost to your business.
Think of it this way: If you go directly to a bank, they still pay internal broker fees to their loan officers. But you get one bank, one option, whatever rate they quote you. When you work with us, you get 25+ banks competing for your deal, better pricing, and it costs you nothing. There's literally no downside to using us.
Michigan Banks and Credit Unions Refer Their Clients to Us
When local Michigan banks and credit unions can't fund an SBA loan themselves—whether it's outside their credit box, too complex, or simply not their specialty—they send their clients to us. Banks don't refer customers to competitors. They refer to specialists they trust. We've built relationships with community banks throughout Michigan, credit unions serving Michigan businesses, commercial loan officers who trust us with their clients, and CPAs and business attorneys who recommend us. That's the ultimate endorsement.
Our 5-Step Process: How We Get Michigan Businesses Funded
Step 1: Quick Consultation (30 Minutes)
We discuss your financing needs and timeline, your business situation (industry, revenue, time in business), intended use of proceeds, and preliminary qualification assessment. No pressure. No generic sales pitch. Just straightforward discussion about whether SBA financing makes sense for you. Call (855) 998-5874 or email info@lvrgllc.com.
Step 2: Document Gathering & Analysis (3-5 Days)
We collect 3 years business tax returns (1120, 1120S, or 1065), 3 years personal tax returns (1040), year-to-date profit & loss and balance sheet, business debt schedule, and purchase agreement (if acquisition) or project costs (if real estate/equipment). We analyze your financials, identify any potential issues, and determine the best loan structure and lender match for your situation.
Step 3: Expert Packaging & Pre-Underwriting (5-7 Days)
This is where we add massive value: complete loan package assembly, cash flow analysis and debt service calculations, professional business presentation, executive summary highlighting strengths, and pre-underwriting to identify concerns before submission. We present your business in the strongest possible light and eliminate issues that cause delays or declines.
Step 4: Lender Submission & Management (2-4 Weeks)
We submit to the best-fit lenders from our network, manage all lender communication and document requests, negotiate terms and conditions on your behalf, and keep the process moving toward approval. Because we've pre-underwritten correctly, lenders move faster. You avoid the endless back-and-forth that delays most deals.
Step 5: SBA Approval, Closing & Funding (2-4 Weeks)
Lender approves and submits to SBA for guarantee. SBA reviews and issues approval (typically 5-10 days). We coordinate all closing requirements. You sign final documents and receive funds.
Total Timeline: SBA 7(a) Loans average 45-60 days. SBA 504 Loans average 60-90 days. USDA B&I Loans average 60-90 days. Some deals close faster. Complex transactions (multiple properties, business acquisitions with extensive due diligence, or situations requiring additional documentation) may extend timelines. But our process eliminates the most common delays.
Real Michigan Businesses, Real Results
"After three months of runaround from Chase and Huntington, LVRG packaged our acquisition in two weeks and got us better terms than we expected." Manufacturing Company, Sterling Heights, MI. Industry: Tool & Die Shop Acquisition. Loan Amount: $850,000 SBA 7(a). Challenge: Major banks declined due to "specialized industry" concerns. Result: Approved with specialized manufacturing lender, 10.2% rate, funded in 49 days.
"They understood our industry in ways traditional banks never could. Made the whole process simple." Medical Practice, Grand Rapids, MI. Industry: Multi-Provider Physician Practice. Loan Amount: $1,200,000 SBA 504. Challenge: Purchasing medical office building, needed low down payment. Result: 10% down (vs. 25% conventional), 6.4% fixed rate, funded in 61 days.
"We were ready to give up after two bank declines. LVRG found a lender who actually understood excavation businesses." Construction Company, Metro Detroit. Industry: Excavation & Site Work. Loan Amount: $2,300,000 USDA B&I. Challenge: Acquiring competitor with substantial equipment and contracts. Result: Rural Michigan location qualified for USDA, lower rates, 25-year term.
"Better pricing than going direct to our bank, zero cost to us—why would anyone not use LVRG?" Automotive Group, Ann Arbor, MI. Industry: Multi-Location Collision Centers. Loan Amount: $1,650,000 SBA 7(a). Challenge: Two-location acquisition with real estate and equipment. Result: 9.8% rate (vs. 11.2% direct bank quote), funded in 54 days.
Understanding Current SBA Loan Rates in Michigan (2026)
SBA loan rates improved significantly throughout 2025, and the trend continues into 2026, making now an opportune time for Michigan businesses to pursue financing.
Current Michigan SBA Market Snapshot
Q4 2025 Data (Most Recent): Average interest rate of 9.6% (down from 10.5% in Q4 2024). Average loan size of $526,749. Loans approved in Q2 2025 totaled 388 loans worth $204 million.
What Determines Your Rate
Prime Rate Baseline: Current prime rate is 7.5% (as of December 2025). SBA 7(a) rates equal Prime + 2.5% to 4.5%. Your markup depends on loan size, term, and credit strength.
Loan Size: Loans over $1M typically get better pricing. Larger loans equal lower lender markup within SBA guidelines.
Loan Term: 10-year terms may have different pricing than 25-year terms. Longer terms sometimes carry slightly higher rates.
Credit Strength: 720+ credit scores get best pricing. 680-720 scores get mid-tier pricing. 650-680 scores get higher pricing (but still financeable).
Lender Competition (This Is Where We Add Value): Going direct to one bank means whatever rate they quote. Using us means 25+ lenders competing for your deal which means better rates.
Current Rate Ranges by Program
SBA 7(a) Loans: Best pricing is 10.0% - 10.5% (Prime + 2.5% to 3.0%). Standard pricing is 10.5% - 11.5% (Prime + 3.0% to 4.0%). Higher-risk scenarios are 11.5% - 12.0% (Prime + 4.0% to 4.5%).
SBA 504 Loans: SBA portion (40%) is 5.0% - 7.0% fixed (tied to 10-year Treasury). Bank portion (50%) is 7.5% - 9.5% (typically variable). Blended effective rate is 6.5% - 8.5%.
USDA B&I Loans: Negotiated rates are 8.0% - 11.0%. Depends on loan size, term, business strength, and rural location.
Why We Get You Better Rates
Single Bank: You get whatever rate their credit committee approves based on their internal policies, regardless of market competition.
LVRG Multi-Lender Platform: We submit to multiple specialized lenders simultaneously. Lenders know they're competing for your deal. Competition drives pricing down.
Real example: Direct bank quote was 11.2%, 15% down, 10-year term. LVRG lender network delivered 10.1%, 10% down, 10-year term. Savings of 1.1% rate reduction equals $165/month on $1M loan which equals $19,800 over 10 years. And you pay us nothing for this pricing advantage.
Frequently Asked Questions: SBA Loans for Michigan Businesses
How much does LVRG charge for SBA loan services?
Answer: Absolutely nothing. We're compensated directly by SBA lenders through standard broker fees that are built into every SBA loan—whether you use a broker or not. You get white-glove service, expert packaging, access to 25+ specialized lenders, and exclusive pricing completely free.
How long does the SBA loan process take?
Typical timelines are SBA 7(a) Loans at 45-60 days from complete application to funding, SBA 504 Loans at 60-90 days, and USDA B&I Loans at 60-90 days. We speed up the process by pre-packaging your file correctly and eliminating back-and-forth delays that slow most deals. Complex transactions (multiple properties, extensive due diligence, or unusual structures) may take longer.
What if big banks already turned down my SBA loan?
This is exactly our specialty. A decline from Chase, Wells Fargo, Huntington, or PNC does NOT mean you don't qualify. The mega-banks are extremely selective and turn down 8 out of 10 applications. We have access to 25+ SBA lenders with different criteria, different industry focuses, and different risk appetites. We've successfully funded hundreds of Michigan businesses declined by major banks.
Common decline reasons we overturn: Credit score "not perfect enough" (banks want 750+, we have lenders at 650+), industry bank doesn't understand (manufacturing, healthcare, specialized services), deal complexity (acquisitions, multi-location, partnership structures), time in business (banks want 5+ years, we can do 2+ years), and loan size outside bank's sweet spot.
What credit score do I need for an SBA loan in Michigan?
Minimum is 650 with strong compensating factors. Preferred is 680+. Ideal is 720+. If your score is 620-650, we can still potentially work with you if you have solid cash flow and profitability (DSCR 1.5x+), significant time in business (5+ years), strong collateral position, large down payment (20%+), and industry expertise and management experience. Different lenders have different credit overlays. Our job is matching you with the lender most likely to approve your specific profile.
How much can I borrow with an SBA loan in Michigan?
SBA 7(a) Loans go up to $5,000,000. SBA 504 Loans go up to $5,000,000 (up to $5,500,000 for manufacturing and energy-efficient projects). USDA B&I Loans go up to $25,000,000 for qualifying rural Michigan businesses. We typically work with Michigan businesses seeking $250,000 to $5,000,000+ in financing. We've facilitated loans as small as $150K and as large as $18M (USDA).
Do I need collateral for an SBA loan?
Yes, SBA loans are secured loans. However, collateral requirements are more flexible than conventional financing. How it works: Lenders take a security interest in assets purchased with loan proceeds (real estate, equipment, inventory). If business collateral is insufficient to fully secure the loan, they may require additional collateral (personal real estate, other business assets). Personal guarantees required from all owners with 20%+ equity. SBA policy states: "Lack of collateral will not be the sole reason for declining an SBA loan if the borrower can demonstrate repayment ability." Translation: If your cash flow supports the debt, lenders can approve even with limited collateral.
Can I use an SBA loan to buy a business in Michigan?
Absolutely. SBA 7(a) loans are ideal for business acquisitions: Finance up to 90% of purchase price. Terms up to 10 years (25 years if real estate included). Competitive interest rates. Can include working capital for post-acquisition operations. Business acquisition financing is one of our specialties. We've helped Michigan business owners acquire manufacturing companies (tool & die shops, metal fabricators, automotive suppliers), medical and dental practices, professional services firms (law firms, accounting practices, MSPs), automotive businesses (dealerships, service centers, car washes), restaurants and franchise operations, and construction and contracting companies.
Key factors for acquisition financing: Business must have 2+ years operating history. Seller can hold 5-10% seller note (helps with down payment). Transition period typically required (30-90 days). Non-compete agreements essential.
Can I use an SBA loan for commercial real estate in Michigan?
Yes. Both SBA 7(a) and SBA 504 loans finance owner-occupied commercial real estate. Requirements: Owner-occupied means at least 51% of building used by your business. Down payment of 10-15% (vs. 20-30% conventional). Terms up to 25 years. Rates are fixed (504) or variable (7(a)).
What qualifies: Manufacturing facilities and industrial buildings, medical/dental office buildings, retail and restaurant locations, office buildings for professional services, shop/warehouse facilities for contractors, automotive dealerships and service centers, and mixed-use properties (if you occupy 51%+).
What doesn't qualify: Investment properties (rental buildings), properties primarily for lease to others, and properties for passive income.
Choose 7(a) or 504: 504 is better for larger real estate purchases ($1M+), want fixed rate and lowest down payment. 7(a) is better if you need working capital too, faster closing, or smaller deals.
What's the difference between going direct to a bank vs. using LVRG?
Going Direct to a Bank: One lender equals one set of criteria equals one answer. You get whatever rate they quote (no competition). If declined, you start over with next bank. You handle all packaging and documentation. No expertise in optimizing your application. 60-90 day process minimum. 80% decline rate at major banks.
Using LVRG Business Funding: 25+ lenders equal multiple options equal higher approval odds. Lenders compete for your deal which equals better pricing. Pre-underwriting identifies best-fit lenders. We handle all packaging and documentation. Expert optimization of your application. 45-60 day typical process. Zero cost to you.
Does my Michigan business location matter for USDA loans?
Yes—and this is a HUGE opportunity most businesses miss. 97% of Michigan qualifies as "rural" under USDA guidelines. If your business is located outside the immediate cores of Detroit, Grand Rapids, Ann Arbor, or Lansing, you likely qualify for USDA Business & Industry loans.
USDA-eligible areas include entire Upper Peninsula, all of Northern Michigan, most suburban areas of major metros, and virtually all counties outside metro cores.
Why this matters: USDA loans go up to $25M (vs. $5M SBA cap). Competitive rates (often better than SBA). Longer terms (up to 30 years for real estate). Job creation incentives.
Check eligibility: We can verify your specific address in 5 minutes. Most Michigan businesses are shocked to learn they qualify.
How do I know if I should use a 7(a) or 504 loan?
Choose SBA 7(a) if: Buying an existing business or franchise, need working capital along with real estate/equipment, want faster closing (single lender, 45-60 days), real estate purchase under $2M, prefer variable rate (might drop if Fed cuts rates), or want maximum flexibility in fund usage.
Choose SBA 504 if: Purchasing commercial real estate or major equipment, want fixed rate for 10-25 years (eliminate interest rate risk), want lowest down payment (10% vs. 15% for 7(a)), real estate purchase over $1M (504 structure saves money), don't need working capital (504 can't include it), or have manufacturing or energy-efficient project.
Not sure? That's exactly what we help you figure out. Different situations call for different programs. Call us and we'll walk through the best option for your specific business.
What industries do you specialize in?
We have deep expertise in Michigan's highest-value business sectors: Manufacturing (tool & die, metal fabrication, injection molding, CNC machining, automotive parts, industrial equipment, food processing). Medical/Healthcare (physician practices, dental practices, urgent care, veterinary hospitals, home healthcare, surgical centers). Construction (general contractors, excavation, concrete, HVAC, plumbing, electrical, restoration/remediation). Automotive (dealerships, collision centers, car washes, tire shops, service centers). Professional Services (law firms, accounting practices, engineering firms, MSPs, insurance agencies, consulting firms). Retail/Convenience (gas stations, liquor stores, convenience stores, party stores). Hospitality/Services (restaurants, fitness centers, pet care, self-storage, RV parks, funeral homes). Agriculture/Rural (food processing, farm operations, agribusiness, rural manufacturing, broadband). If you operate an established Michigan business with real revenue and growth plans, we can help.
Ready to Get Your Michigan Business Funded?
Stop wasting time with banks that will say no or can't say yes. You've built a real business. You generate real revenue. You have a legitimate growth opportunity. Let's talk about how we can help you secure the financing you need—with better terms, faster timelines, and zero cost to you.
Three Ways to Get Started
Call Our Michigan SBA Specialists: (855) 998-5874. Speak directly with an SBA loan expert who understands Michigan businesses and your industry. Available Monday-Friday, 9am-6pm EST.
Email Your Deal Summary: info@lvrgllc.com. Tell us about your business, what you need, and your timeline. We'll respond within 24 hours with a preliminary assessment and next steps.
Schedule a Consultation: Pick a time that works for your schedule. We'll discuss your needs, review your qualification factors, and map out your path to approval.
About LVRG Business Funding
LVRG Business Funding is Michigan's leading SBA loan platform, connecting Michigan businesses with the nation's most capable and specialized SBA lenders. Based in Metro Detroit, we serve businesses throughout Michigan—from urban markets like Detroit, Grand Rapids, and Ann Arbor to rural communities across the state.
Over 20 years, we've facilitated $1+ billion in business financing for more than 10,000 companies nationwide, with deep expertise in Michigan's key industries and economic landscape.
We understand Michigan's manufacturing ecosystem, healthcare and medical practice valuations, construction and contracting cash flow dynamics, automotive industry financing requirements, professional services acquisition structures, and rural Michigan USDA opportunities.
Our mission: Make SBA financing accessible, understandable, and successful for every qualified Michigan business—from Detroit to the Upper Peninsula, from Grand Rapids to rural Michigan communities.
Powered by decades of SBA lending expertise and direct relationships with 25+ specialized lenders nationwide, we provide Michigan businesses with financing solutions they cannot access on their own.
LVRG Business Funding Michigan's #1 SBA Loan Platform (855) 998-5874 info@lvrgllc.com Based in Metro Detroit | Serving All of Michigan Loan Programs: SBA 7(a) Loans | SBA 504 Loans | USDA Rural Business Loans