SBA Loans in Wisconsin: Your Complete 2025 Guide

For small businesses and entrepreneurs in Wisconsin, Small Business Administration (SBA) loans have become a critical path to affordable financing. Whether you are starting a business in Milwaukee, expanding in Madison, purchasing commercial real estate in Green Bay, or acquiring equipment in Eau Claire, this comprehensive 2025 guide details everything you need to know about securing an SBA loan in Wisconsin.

Why Choose SBA Loans in Wisconsin?

• Government-backed: Reduced risk for lenders, easier approval for borrowers.
• Lower down payments: Commonly 10% for many loan types.
• Competitive rates: SBA sets rate caps, often below traditional bank loans.
• Longer repayment terms: Up to 25 years for real estate, 10 years for equipment.
• Flexible uses: Working capital, business acquisition, equipment, startups, real estate, exporting, and more.

SBA Loan Types Available in Wisconsin (2025)

1. SBA 7(a) Loans

The most popular and versatile SBA loan. Use funds for working capital, acquisition, equipment, refinancing, or real estate.

• Loan amounts: Up to $5 million
• Typical rates (2025): Prime + 2%-2.75% (floating), adjusted quarterly
• Terms: Up to 10 years (working capital/equipment); up to 25 years for real estate
• Down payment: Typically 10% minimum
• Guarantee fee: 0.25%–3.5% (may be waived for some loans in 2025)

2. SBA 504 Loans

Ideal for real estate, large equipment, or construction projects. Structured with SBA, your lender, and a local Certified Development Company (CDC).

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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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.

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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.

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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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• Loan amounts: Up to $5.5 million from SBA (can be higher with lender/CDC participation)
• Typical rates (2025): As low as 6.5%, fixed
• Terms: 10, 20, or 25 years (fixed rate on the SBA portion)
• Down payment: Minimum 10% (sometimes higher for startups/special properties)

3. SBA Microloans

Great for startups and very small businesses who need less than $50,000.

• Loan amounts: Up to $50,000 (average: $13,000)
• Rates: Typically 8%–13% in 2025
• Terms: Maximum 7 years
• Best for: Home-based businesses, retailers, food trucks, solo entrepreneurs

4. SBA Express Loans

Faster approval and funding, up to 0,000. Best for urgent working capital or quick expansions.

• Loan amounts: Up to $500,000
• Approval time: As fast as 36 hours
• Rates: Up to 4.5% over prime
• Uses: Working capital, equipment, lines of credit

5. SBA Export Loans

✅ 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.

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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%

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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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Wisconsin has a thriving export market. SBA’s export loan programs help you fund international sales growth.

• Export Express: Up to $500,000 (fast approval)
• Export Working Capital: Up to $5 million
• International Trade Loan: Up to $5 million

2025 Focus: SBA Working Capital Financing in Wisconsin

✅ 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

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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

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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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With ongoing economic volatility, many Wisconsin businesses are prioritizing working capital in 2025. Whether bridging seasonal gaps, launching new products, or offsetting supply chain lags, SBA loans offer flexible terms for working capital needs.

Eligibility & Qualification Requirements for Wisconsin Businesses (2025)

• Business type: For-profit, operating in the U.S. (or its territories), owned by U.S. citizens or lawful residents
• Size standard: Business must meet SBA’s small business criteria for its NAICS code
• Personal credit score: Generally 650+ for most programs
• Time in business: 2+ years preferred for traditional loans (startups eligible for microloans and some Express loans)
• Collateral: Required for loans >$25,000 (7(a), 504), though some Express and microloans may be unsecured
• Down payment: 10% minimum (higher for startups/acquisitions/real estate)
• Owner investment: Skin-in-the-game expectation for startups/acquisitions
• No delinquencies: Must not be delinquent on federal debt (e.g., student loans, taxes)

Top SBA Preferred Lenders in Wisconsin (2025)

• U.S. Bank National Association (Top 7(a) and 504 lender with branches statewide)
• Associated Bank (Wisconsin-based, robust business lending team)
• WBD Inc. (Wisconsin Business Development) (Major Certified Development Company for 504 loans)
• Summit Credit Union (Active in microloans and express loans, strong presence in Madison/central WI)
• Wells Fargo Bank (National preferred SBA lender, active in Milwaukee and Green Bay)
• Gateway Capital (Specialist in microloans, early-stage ventures in southeast Wisconsin)

Wisconsin 2025 SBA Loan Application: Step-By-Step

1. Assess your financing needs (Amount, Use: working capital, acquisition, equipment, etc.)
2. Check eligibility (Credit, time in business, collateral, owner investment, business plan for startups)
3. Choose the right SBA program (7(a), 504, Microloan, Express, Export)
4. Find a preferred SBA lender (see above for Wisconsin options)
5. Prepare documentation:
   • Business plan (for startups or major expansions)
   • 3 years personal and business tax returns
   • Current business financials (balance sheet, P&L, cash flow)
   • Personal financial statement
   • Business licenses, articles of incorporation
   • Collateral details (real estate, equipment, etc.)
6. Submit application to lender (lender will submit to SBA for guarantee approval)
7. Lender/SBA review & underwriting (Credit check, business viability, collateral appraisal)
8. Receive approval and closing documents
9. Loan closing & funding (Funds typically received within 1-6 weeks)

SBA Loan Success Stories from Wisconsin Businesses

• Startup Financing: Green Roots Juice Bar (Madison) obtained a $42,500 SBA Microloan through Summit Credit Union to launch its storefront, covering equipment, staff, and marketing. Now employing 9 people after two years.
• Business Acquisition: Cedar Tech Services (Appleton) secured a $1.9 million SBA 7(a) loan from Associated Bank to purchase a local IT service company. The deal kept 14 jobs in the community and resulted in steady revenue growth.
• Working Capital: Lake Country Outfitters (Oconomowoc) used an SBA Express Loan ($350,000, U.S. Bank) to expand inventory for peak fishing and boating season, resulting in a 27% year-over-year sales increase.
• Commercial Real Estate: Cream City Café (Milwaukee) financed their new location by combining SBA 504 ($900,000 from WBD Inc., fixed-rate) and bank funds ($1.2 million), allowing for a 20-year repayment and only 10% down.

Wisconsin SBA District Office & Local Resources

• Wisconsin SBA District Office
  310 West Wisconsin Avenue, Suite 580, Milwaukee, WI 53203
  Phone: (414) 297-3941
  sba.gov/offices/district/wi/milwaukee
• SCORE Wisconsin (Free expert mentoring: wisconsin.score.org)
• Wisconsin SBDC (Small Business Development Centers) (wisconsinsbdc.org—business planning, financial advice, loan packaging support)

Additional Business Incentives & 2025 State Economic Programs

• Wisconsin Economic Development Corporation (WEDC): Grants and loan guarantees for qualifying industries (wedc.org)
• Manufacturing & Agriculture Credit: Up to 7.5% income tax credit for eligible businesses
• Technology Development Loans through WEDC and local partners
• Main Street Bounceback Grants: Up to $10,000 for businesses moving into vacant properties (2025 funding pending)

Your Next Steps: Securing SBA Financing in Wisconsin

SBA loans remain Wisconsin’s best option for affordable and flexible business financing in 2025. Whether you need working capital, want to acquire another company, purchase property, or simply launch your entrepreneurial dream, SBA-backed lenders across the state can help make it happen. Connect with your local SBA office, leverage SCORE/SBDC support, and reach out to a preferred lender to get your application process underway today.

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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