Conventional Business Term Loans: A Practical Alternative to SBA Financing

Not all businesses qualify for SBA loans due to strict requirements like credit score, time in business, or tax issues.
Conventional term loans offer a faster, more flexible alternative—with monthly payments and fewer documents.
You can still get funded even after an SBA denial, with approvals up to $500K in as little as 2 days.

When SBA Isn’t an Option, Here’s What Comes Next

Getting approved for an SBA loan is often seen as the gold standard in small business financing, long terms, low rates, and affordable payments. But the truth is, not every business qualifies.

Whether it’s due to limited time in business, credit challenges, tax issues, or inconsistent cash flow, an SBA lender’s strict guidelines can make it difficult for many business owners to access the funding they need. But here’s the good news: being denied for an SBA loan doesn’t mean your financing journey is over. In fact, there are practical alternatives that can still help you grow, stabilize, or cover short-term needs

If your SBA loan was declined or your application is stuck in limbo, a Conventional Business Term Loan through American Capital Group might be the next best move.

Why SBA Loans Get Denied

Lenders that offer SBA guaranteed financing provide some of the lowest-cost, longest-term financing available to small businesses. However, those benefits come with strict qualification standards. Some of the common reasons for SBA loan denials include:

Low personal or business credit scores, which will result in a low SBSS score
Insufficient time in business (usually under 2 years)
Negative cash flow or inconsistent revenue
Outstanding tax liens or bankruptcies or too much unrefinancable debt
Industry restrictions or high-risk categories

Fortunately, a denial isn’t always a reflection of your business’s potential—it just means that your business doesn’t fit the SBA lender’s requirements right now

What Is a Conventional Business Term Loan?

A conventional business term loan is a fixed-payment loan product with flexible underwriting guidelines. Since a conventional loan isn’t guaranteed by the SBA, the lender sets their own minimum standards. This allows for faster approvals, more flexible criteria, and simpler documentation.

If you're looking for monthly payments, longer payback terms, and a chance to escape daily or weekly MCA debt—this might be your ideal path.

Overview of Conventional Term Loan:

Monthly Payments
Approvals up to $500K
1-7 year Payback Terms
Rates: Prime rate + 1% to 21%
660 Credit score - over $75K credit score must be 690
2 days to approve

Required Docs:

6 Months of Business Bank Statements
Most Recent Tax Return

Apply Now for a Conventional Term Loan

Case Study: From Decline to Growth, How a Restaurant Owner in Florida Rebounded with a Term Loan

María, the owner of a fast-casual Caribbean restaurant in Tampa, had just expanded into a second location. She applied for an SBA 7(a) loan to help finish the buildout and invest in staffing. But with just 18 months in business and a credit score of 667, she was denied due to limited time in operation and a borderline SBSS score.

Determined to keep her momentum going, María was introduced to American Capital Group through a referral. Within 48 hours, she was pre-approved for a $165,000 conventional term loan—despite her SBA denial.