SBA Loans for Law Firms: 7 Smart Strategies to Grow Your Legal Practice

As a small law firm owner, you wear every hat, from legal strategist to office manager to growth planner. The pressure to manage cash flow, support your staff, serve your community, and grow your business is constant. That’s where SBA loans can be a powerful tool for your legal practice.

SBA loans are designed for small businesses just like yours—solo or small firms (1–5 attorneys), rooted in the community, striving for stability and smart growth. Whether you’re navigating a slow billing cycle, ready to open a second location, or simply looking for more predictable financing options, SBA loan programs offer a pathway to financial clarity and control.

Let’s explore how these government-backed loans work, why they’re uniquely suited for small law firms, and how you can use them to build the firm, and future, you envision. 

Why SBA Financing for Attorneys is a Good Fit

Law firms may be professional services, but they’re still small businesses. That means they face the same financial challenges: cash flow gaps, rising costs, limited access to traditional credit, and the difficulty of business planning.

SBA loans are backed by the U.S. Small Business Administration, making them lower-risk for lenders and more accessible for small firms.

Here’s what makes SBA financing for attorneys a good fit:

• Relationship-driven lending that aligns with how small firm owners want to bank
• Competitive interest rates that reduce long-term debt burden
• Longer repayment terms (up to 25 years for real estate) to keep monthly payments manageable
• Flexibility in how the funds can be used—whether for payroll, marketing, hiring, or new tech
• No collateral required in many cases, protecting your personal assets

Which SBA Loans Are Best for Law Firms?

For small legal practices, two primary SBA loan options are the best match—depending on your goals. Here’s how they break down:

SBA 7(a) Loan Program

Think of this as your go-to option for flexible working capital. If you’re not buying property but need help covering expenses or planning for expansion, the SBA 7(a) loan is built for you.

Eligible uses include:

• Hiring additional attorneys or support staff
• Investing in legal tech and case management software
• Covering payroll during a slow season
• Launching new marketing or referral campaigns
• Refinancing high-interest business debt

The SBA 7(a) loan is a great option for firms managing seasonal cash flow challenges or looking to fund near-term growth.

SBA 504 Loan Program

If your firm is looking to own office space—or buy and improve an existing one—the SBA 504 loan is the better choice.

You might use a 504 loan to:

• Purchase your building in Center City instead of continuing to lease
• Renovate your current office to create a client-friendly, ADA-compliant space
• Buy large equipment or infrastructure (think on-premise servers, security systems, etc.)

While microloans are available for smaller, short-term needs, most growing law firms in the $120K–$250K revenue range benefit more from the scale and structure of the 7(a) or 504 options.

How a Philadelphia Attorney Used an SBA 7(a) Loan to Expand

Jordan¹, a family law attorney based in Philadelphia, had spent the better part of a decade growing a solo practice into a respected small firm. The team had built a reputation for compassion, clarity, and advocacy. But as the firm’s caseload increased, so did the operational demands.

Payroll during slower billing cycles became harder to manage. Marketing efforts had stalled due to limited cash flow. Caseloads were increasing with more calls than ever from clients in surrounding counties. They needed a solution to help them consider their options.

With a dedicated commercial relationship manager who understood the needs of businesses like Jordan’s, the practice secured an SBA 7(a) loan that helped invest in legal tech, launch a targeted marketing strategy, and bring on a bilingual paralegal to better serve a growing client base.

The SBA funding option gave them the power to expand their service area, improve work-life balance, and hit a long-term goal: building a firm that’s both financially sustainable and deeply rooted in the community.

How to Qualify for an SBA Loan as a Law Firm

You don’t need a finance degree or a massive firm to qualify. You just need to meet a few basic criteria and prepare your documents thoughtfully:

• Operate as a for-profit business in the U.S.
• Have a personal credit score in the 680+ range
• Demonstrate enough revenue or cash flow to repay the loan
• Provide a clear business plan if you’re expanding
• Have relevant legal or business experience

Documentation to prepare includes profit and loss statements, tax returns, balance sheets, a list of debts, and a short narrative about your firm’s goals. If you’re unsure how to start, visit our SBA Loan Application Blog for a detailed step-by-step breakdown.

Quaint Oak Bank Customer Success Tip: If you’re planning your growth strategy this year, don’t miss our updated guide on SBA 7(a) Loans in 2025.

7 Ways Law Firms Are Using SBA Loans to Grow in 2025

Here’s how small firms are putting SBA capital to work:

1. Expanding to a Second Location

A solo practitioner in Delaware County opened a second office closer to clients in Montgomery County, using SBA funds to cover rent, furniture, and early staffing costs.

2. Investing in Local Marketing and SEO

Many attorneys are allocating funds for a new website, local SEO, paid ads, and referral partnerships—turning SBA funds into long-term lead generation engines.

3. Hiring Staff and Expanding Services

From bilingual receptionists to licensed paralegals, SBA funding is helping small firms grow their teams and increase their service offerings—particularly in underserved areas.

4. Upgrading Technology and Infrastructure

Case management software, secure file storage, and client intake systems help automate tasks, reduce errors, and save valuable time.

5. Managing Payroll During Slow Months

For seasonal practices like estate planning or real estate law, SBA loans provide a buffer that helps firms retain staff and maintain service quality during slower periods.

6. Refinancing High-Interest Debt

Some attorneys are using SBA loans to consolidate multiple forms of business or student debt into a single, manageable monthly payment.

7. Enhancing Client Experience

An estate law firm in Bucks County invested in a more accessible, beautifully designed office space—complete with a coffee bar and conference-ready meeting rooms for family consultations.

SBA Loans for Law Firms: A Strategic Move

SBA loans for law firms offer more than funding—they offer peace of mind, predictable cash flow, and the flexibility you need to scale your law practice on your terms. Whether you’re navigating seasonal slowdowns, hiring new staff, or preparing to open a second location, these loans are built with small firm owners like you in mind.

If you’ve been struggling to find a financial partner that understands your needs, consider the benefits of an SBA loan. With a dedicated commercial relationship manager, banking partner, and tailored guidance every step of the way, you don’t have to grow your practice alone.

Explore your loan options and connect with our team to learn more.

Can my small law firm qualify for an SBA loan?

Yes, if you’re operating as a for-profit firm in the U.S., and you have solid financials and a good credit profile, you’re eligible.

What’s the difference between a 7(a) and 504 loan?

7(a) loans are for working capital, hiring, and operations. 504 loans are for buying or upgrading property or large equipment.

Is collateral required?

Most SBA loans require the lender to take a security interest in the business’ assets.

Can I use a loan to pay off other business debt?

Yes. SBA 7(a) loans are often used for refinancing higher-interest debt.

Do I need to write a full business plan?

It depends. If you’re expanding or launching new services, schedule a one-on-one with your banking partner. An SBA lending expert will be able to help you figure out exactly what will be needed.