Raising capital Published October 13, 2026 · 3 minute read · By Briggs Analytics

Alternatives to SBA loans: what to try before you sign a personal guarantee

Short answer: before an SBA loan, look at money you do not have to repay or personally guarantee. That means customer prepayments, grants, tax credits and licensing a copy of your company's operational data. If you still need a loan, revenue-based financing and equipment financing are the usual alternatives. See what your data could be worth.

What an SBA loan asks of you

An SBA loan is a bank loan that the U.S. Small Business Administration partly guarantees. The most common kind, the 7(a) loan, goes up to $5 million. Rates are usually lower than other business loans. In exchange, the process can take weeks or months, lenders look hard at credit and cash flow, and owners usually sign a personal guarantee. That means your own assets are on the line if the company cannot pay.

Six alternatives

Licensing your operational data. Paid for records your company already has. Nothing to repay and no guarantee.
Customer prepayments. A discount in exchange for paying up front.
Grants. SBIR and STTR for research companies, plus state and local grants.
Tax credits. The federal R&D credit for companies doing qualified research.
Revenue-based financing. Repaid from a share of revenue. Faster than an SBA loan, usually more expensive.
Equipment financing. The equipment itself secures the loan, which can mean no personal guarantee.

Licensing your data, explained

AI companies pay to license copies of real business records: how jobs were quoted and done, how tickets were solved, how deals moved. You keep the originals and keep running the business. Reddit disclosed $203 million in data licensing contracts (SEC filing), and Google bid $10 million for Spirit Airlines' records (Business Insider). For a typical small or mid-size company the number is smaller and depends on headcount, years and systems.

Engraving illustrating alternatives to sba loans: what to try before you sign a personal guarantee — Buyers pay for the record of how the work got done.

See what your company's operational data could be worth.

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Side by side

	SBA loan	Licensing your data	Revenue-based financing
Repaid?	Yes, with interest	No	Yes, from revenue
Personal guarantee?	Usually	No	Sometimes
Depends on credit?	Yes	No	Partly
Speed	Weeks to months	Usually weeks to about two months after signing	Days to weeks

Briggs Analytics is not a lender, a law firm or a financial advisor. Talk to yours before you choose.

In short

SBA 7(a) loans go up to $5 million (SBA), with lower rates but slow approval and usually a personal guarantee.
Licensing a copy of your operational data has nothing to repay and no guarantee.
Prepayments, grants and tax credits also avoid debt.
Revenue-based and equipment financing are the faster loan alternatives.

Questions owners ask.

Is it hard to get an SBA loan?

Lenders look closely at credit, cash flow and time in business, and approval can take weeks or months. Many owners also have to sign a personal guarantee.

What can I use instead of an SBA loan for working capital?

Customer prepayments, revenue-based financing, or licensing a copy of your operational data.

Does licensing my data affect a future SBA loan?

Tell your lender. A license of a copy is not debt, but lenders want to know about any agreement that covers company assets.

How much could my company's data be worth?

It depends on headcount, years of history and the systems you run. The estimate takes about two minutes.

Briggs AnalyticsWe help business owners get paid for the business data they already have. Philadelphia, PA.