SBA Loans in Nebraska: Complete 2025 Guide for Small Businesses

For entrepreneurs and business owners in Nebraska, access to capital is vital for success, whether you’re launching a new venture, expanding operations, acquiring a business, or investing in commercial real estate. The U.S. Small Business Administration (SBA) provides a range of government-backed loan programs to fuel Nebraska’s vibrant economy. This guide offers an in-depth look at SBA loans for 2025, including types, lender options, eligibility requirements, application steps, local resources, and state incentives.

Table of Contents

• SBA Loan Types Available in Nebraska (2025)
• Qualification Criteria & Borrower Requirements
• Top SBA Preferred Lenders in Nebraska
• Step-by-Step SBA Loan Application Process
• Nebraska Small Business Success Stories
• Nebraska SBA District Office & Business Resources
• Key Advantages of SBA Loans in 2025
• Nebraska Economic Development Incentives
• FAQs about SBA Loans in Nebraska

SBA Loan Types Available in Nebraska (2025)

The SBA offers a spectrum of loan programs tailored to the unique needs of Nebraska’s small businesses. Here’s an overview for 2025:

SBA 7(a) Loan Program

• Amount: Up to $5 million
• Purposes: Working capital, equipment, inventory, business acquisitions, refinance, and real estate purchase
• Terms: Working capital up to 10 years; Equipment/real estate up to 25 years; 2025 rates: WSJ Prime + 2.25%–2.75% (varies by amount and term)

SBA 504 Loan Program

• Amount: Up to $5.5 million (or more for eligible manufacturing and energy projects)
• Purposes: Commercial real estate purchase, construction, or renovation; large equipment
• Terms: 10, 20, or 25-year fixed interest rates (typically lower than bank rates due to debenture structure)
• Structure: 50% bank, 40% SBA CDC, 10% borrower down payment

SBA Microloan Program

• Amount: Up to $50,000
• Purpose: Startups, inventory, supplies, equipment, working capital
• Terms: Up to 6 years; 2025 rates: 7%–9% fixed

SBA Express Loan

• Amount: Up to $500,000
• Purpose: Fast-track working capital, revolving lines of credit, smaller equipment
• Terms: Up to 10 years; streamlined approval in as little as 36 hours

SBA Export Loan Programs

• Export Express – Fast, flexible financing up to $500,000 for exporters
• Export Working Capital – Guarantee up to $5 million for businesses expanding into new export markets

Qualification Criteria & Borrower Requirements

To qualify for an SBA loan in Nebraska, businesses need to meet the following core requirements:

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Page 1 of 5

Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

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How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

Page 3 of 5

What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

Page 4 of 5

Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

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Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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• Size: Be a for-profit business with fewer than 500 employees or meet revenue-based definitions
• Location: Physically located and operating in Nebraska or servicing US markets
• Credit Score: Typically 650+ (some lenders consider from 620 for microloans)
• Down Payment: 10–20% for 504 & 7(a) loans (often lower for working capital)
• Collateral: Required for most 7(a) and all 504 loans but may not be needed for microloans or Express loans
• Business Plan: Necessary for startups and expansions
• Owner Investment: Demonstrated personal investment and management experience
• No Disqualifying Defaults: No federal delinquencies or recent bankruptcies

Tip: While the SBA provides loan guarantees, actual credit qualification, underwriting, and rates are managed by the participating lender.

Top SBA Preferred Lenders in Nebraska (2025)

Nebraska is served by experienced local and national SBA Preferred Lenders (PLP) who offer fast-track approvals and robust small business support. Major lenders active in Nebraska include:

1. Pinnacle Bank – Omaha, Lincoln, and across Nebraska. Specializes in 7(a), 504, and Express loans; deep local relationships.
2. First National Bank of Omaha – Leading lender for business expansion and real estate financing statewide.
3. Wells Fargo – National Preferred Lender with strong SBA 7(a) and Express programs.
4. U.S. Bank – Full range from startups to business acquisition financing; fast turnaround.
5. Community Development Resources (CDR) – Nebraska-based SBA Microloan Intermediary and 504 CDC, supporting new and underserved businesses.

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

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Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

Page 3 of 5

Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

Page 4 of 5

For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

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What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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Other options: Cornhusker Bank (Lincoln), Union Bank & Trust, and Midwest Bank.

Step-by-Step SBA Loan Application Process

1. Assess Your Financing Needs
   • Determine which SBA loan type best fits your purpose: startup, acquisition, real estate, working capital, or equipment.
   • Gather necessary details (amount, use of proceeds, timelines).
2. Choose Your SBA Lender
   • Contact 2–3 Nebraska SBA Preferred Lenders (see list above) for initial consultations and rate quotes.
3. Prepare Your Documents
   • Business plan (for startups or expansions)
   • 2–3 years personal and business tax returns
   • Financial statements: balance sheet, P&L
   • Personal financial statement
   • Business licenses, legal docs, incorporation
   • Debt schedule (existing business)
4. Submit Loan Application
   • Lender reviews for eligibility, credit, collateral, and business viability
   • SBA Form 1919 (borrower info), SBA Form 413 (personal financials), and other SBA-required forms
5. Underwriting & Conditional Approval
   • Lender and SBA/CDC analyze risk and approve. May request additional info.
6. Loan Closing
   • Sign final documents, fund any required down payment
   • Funds disbursed for approved business purposes

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

Page 3 of 3

Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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Timelines: Express and Microloans often close in as little as 1–2 weeks; 7(a) and 504 loans typically require 30–45 days.

Nebraska Small Business Success Stories

Startup Financing: Family-Owned Bakery in Lincoln

The Wagner family launched Lincoln Sourdough using a $48,000 Microloan from Community Development Resources (CDR). Funds covered renovated bakery space, commercial ovens, and working capital. Within the first year, they grew to six employees and added a mobile food truck for local festivals.

Business Acquisition: Rural Hardware Store Near Kearney

Local entrepreneur Marcus Li obtained a 0,000 SBA 7(a) loan from Pinnacle Bank to acquire and revitalize a longstanding hardware store. The loan covered inventory, branding upgrades, and six months of payroll. The business expanded to offer online sales and created five new jobs.

Commercial Real Estate: Omaha Childcare Center

Bella Kids Academy used a .44 million SBA 504 loan (US Bank and Nebraska Economic Development Corporation) to purchase and renovate their facility. Only 15% down was required, enabling them to triple their licensed capacity and extend programs for working parents.

Nebraska SBA District Office & Business Resources

The Nebraska SBA District Office is your direct resource for one-on-one business counseling, workshops, and connection to SBA partners.

• Address: 10675 Bedford Ave Suite 100, Omaha, NE 68134
• Phone: (402) 221-4691
• Website: SBA Nebraska District Office

Additional Nebraska business support:

• Nebraska SBDC Network – Free consulting and business training
• SCORE Omaha & Lincoln – Free mentoring by experienced volunteers
• Nebraska Department of Economic Development (DED) – Grants, incentives, site selection
• Nebraska Economic Development Corporation (CDC for SBA 504)

Key Advantages of SBA Loans in 2025

• Low Down Payments: Start at just 10% for 504; often 10–15% for 7(a) and acquisitions
• Longer Terms: Up to 25 years for real estate; 10 years for working capital and equipment
• Competitive Rates: 7(a): ~10.5–12% (as of April 2025); 504 rates often sub-7% fixed
• Easier Approval: SBA guarantee reduces lender risk, helping business owners with less collateral or lower equity
• Flexible Uses: Fund almost any business purpose, including startup costs, expansions, mergers, and property purchases

With 2025’s robust economic environment and low unemployment, Nebraska’s small businesses have an unprecedented opportunity to build, grow, and diversify—enabled by tailored SBA financing options.

Nebraska Economic Development Incentives for Small Firms

The state supports entrepreneurship and small business growth through:

• Angel Investment Tax Credit: Up to 40% state tax credit for qualifying early-stage company investors
• Nebraska Advantage Program: Wage and investment credits, sales tax refunds, and property tax exemptions for qualifying expansions and job creators
• Youth & Rural Entrepreneurship Programs
• Site & Building Development Fund: Grants for facility improvements and business relocation

FAQs about SBA Loans in Nebraska

Q: Can startups in Nebraska get SBA loans?

A: Yes—microloans, 7(a), and even Express loans are available for Nebraska startups with business plans and some personal investment.

Q: How much do I need for a down payment?

A: Most 7(a) and 504 loans require 10–20% down; sometimes lower with strong collateral or co-guarantors.

Q: What is the typical SBA loan rate in Nebraska for 2025?

A: As of April 2025: 7(a) rates range ~10.5–12% variable; 504 fixed rates are often below 7% depending on project and lender.

If you’re evaluating your options, consult with a Nebraska SBA Preferred Lender or local SBDC for personalized, up-to-date guidance.

Get a No Obligation Quote Today.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

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