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Business HELOC at a Glance
Revolving
Draw what you need, repay it, and draw again — secured by your home equity.
Lower Rates
Home-secured lines of credit typically carry lower rates than unsecured business loans.
Flexible Use
Use your HELOC for any business purpose — operations, equipment, expansion, or cash flow.
How a Business HELOC Works
A home equity line of credit — HELOC — is a revolving credit line secured by the equity in your home. For business owners who have built equity in their primary residence, a HELOC is one of the most cost-effective ways to access capital for their business. Because the line is secured by real property, interest rates are typically significantly lower than unsecured business loans. You draw what you need, pay interest only on what you’ve drawn, repay it on your schedule, and the credit becomes available again.
Here’s what that looks like in practice: you own your home and have built $200,000 in equity over the years. Your business is growing, and you need flexible access to capital — for a piece of equipment this quarter, working capital next season, and possibly a small expansion next year. Rather than taking out three separate loans, a HELOC gives you a single revolving credit line backed by your home equity. You draw $40,000 for the equipment, repay it over eight months, and the full line is available again when the next need arises. One application, one line, lower rate than any unsecured product.
SBG Funding’s business HELOC gives business owners revolving access to capital secured by home equity. Unlike an unsecured business line of credit — which relies on business revenue and credit profile — a HELOC is evaluated based on your home’s appraised value, your equity position, and your overall financial profile. The tradeoff for the lower rate is that your home serves as collateral. This is an important consideration — draw responsibly and ensure your repayment plan is sound before using home equity for business purposes.
Interest paid on a HELOC used for business purposes may be tax-deductible — consult your tax advisor for guidance specific to your situation. The flexible, revolving structure makes a HELOC well-suited for business owners who have ongoing or variable capital needs and want the lowest possible cost of borrowing against their personal balance sheet.
Why Business Owners Choose SBG Funding for Their HELOC
Banks offer HELOCs — but the process is slow, the requirements are stringent, and the timeline rarely matches when a business owner needs capital.
SBG Funding
Traditional Bank
When a Business HELOC Is the Right Choice
A HELOC makes sense when you have meaningful home equity, an ongoing or variable capital need, and want the lowest available cost of borrowing.
You Have Significant Home Equity and an Ongoing Capital Need
If your business has recurring capital needs — seasonal inventory, ongoing working capital, periodic equipment purchases — a HELOC is more efficient than taking out a new loan each time. One line, one application, lower rate. Draw when you need it, repay when you can, draw again. The revolving structure means your credit line grows with your repayment history rather than requiring a new application for each capital need.
You Want the Lowest Possible Rate on Business Capital
Unsecured business loans carry higher rates than home-secured lines because the lender has no asset recourse. If minimizing borrowing cost is the priority and you have home equity available, a HELOC typically offers a lower rate than any unsecured business line of credit or working capital loan of equivalent size. The tradeoff — your home is the collateral — should be weighed carefully.
You Want to Separate Business and Personal Financing
Some business owners prefer to keep a HELOC as a personal financial backstop and use separate business financing products for day-to-day operations. A HELOC can serve as a low-cost reserve — available when needed, not drawn for routine operating costs — while conventional business financing handles the operational cash flow.
What Business Owners Use a HELOC For
A business HELOC is flexible — here are the most common ways business owners put their home equity to work.
Equipment and Asset Purchases
Draw from your HELOC to purchase equipment, vehicles, or technology. Repay over time and the credit resets — no new application needed for the next purchase.
Business Expansion
Opening a second location, renovating an existing space, or entering a new market — expansion investments that benefit from the lower rate and flexible draw structure of a home-secured credit line.
Working Capital and Cash Flow
Covering payroll, inventory, and operating costs during slow periods or between revenue cycles — using home equity as a lower-cost alternative to unsecured working capital financing.
Debt Consolidation
Replacing higher-rate business debt with a lower-rate HELOC draw can reduce total interest cost significantly. Use home equity to pay off merchant cash advances, credit card balances, or short-term loans at higher rates.
Acquisition and Investment
Using home equity as part of a business acquisition, partnership buy-in, or investment — as a component of a larger financing structure or as a bridge while permanent acquisition financing is arranged.
Emergency Reserve
Maintaining an open HELOC as a low-cost financial backstop — available for urgent needs, equipment failures, or unexpected expenses — without paying interest until it’s drawn.
All You Need to Qualify
$250K+
annual revenue
500+
min. FICO score
6+
months in business
4
bank statements
No hard credit pull. No upfront fees.
In addition to SBG Funding’s standard business requirements, a HELOC requires sufficient home equity — typically a loan-to-value ratio of 80–85% or lower after the HELOC is factored in. Your home’s appraised value and existing mortgage balance will be assessed as part of the application. Contact our team to discuss your equity position and HELOC eligibility.
What Business Owners Are Saying
Real businesses. Real results.
★★★★★
“I’ve had an excellent experience with SBG Funding. My account executive Marsha was absolutely amazing. She is very knowledgeable, considerate and kindhearted. She will go above and beyond to meet your funding needs. 5-Star service all the way across the board! I’ll most definitely will utilize their services again in the very near future!”
Timothy T. from Florida
via Trustpilot
★★★★★
“We had a fantastic experience with SBG Funding. Frank and Liam made the entire process quick, easy, and completely stress-free. As operators in the short-term rental industry, speed and clarity are everything when it comes to capital — and they absolutely delivered. Communication was clear, expectations were upfront, and funding moved faster than we anticipated. Looking forward to building a long-term relationship with the SBG team.”
Derek G. from Texas
via Google Reviews
Just 3 Steps to Get Funded
01
Apply Online
Complete our quick online application in about 5 minutes. Basic information about your business and financing needs — no lengthy paperwork to get started.
02
Get Your Options
Our team reviews your application and presents loan options matched to your business profile. We look at revenue, deposit history, and time in business — not just your credit score.
03
Receive Your Funds
Once approved and documents are signed, funds can be in your business bank account in as little as 24 hours.
Frequently Asked Questions
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Can I use a HELOC for business purposes?
Yes. A HELOC secured by your primary residence can be used for business expenses — working capital, equipment, expansion, debt consolidation, or any other legitimate business purpose. There is no legal restriction on using home equity for business needs. Interest paid on a HELOC used for business may also be tax-deductible — consult your tax advisor for guidance specific to your situation.
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How quickly can I get funded?
After approval and document submission, funds can be available in as little as 24 hours. The online application takes about 5 minutes, and most applicants receive a decision the same business day.
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What serves as collateral for a business HELOC?
Your primary residence serves as collateral for a HELOC. This is what enables the lower rate relative to unsecured business loans — the lender has recourse to your home if the loan is not repaid. This is an important consideration: draw responsibly and maintain a repayment plan that ensures your home is not at risk.
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How much can I borrow with a business HELOC?
The available credit limit is based on your home’s appraised value, your existing mortgage balance, and the lender’s loan-to-value requirements — typically allowing you to borrow up to 80–85% of your home’s appraised value, minus any existing mortgage balance. Contact our team with your home value and mortgage balance for a preliminary estimate of your available credit.
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What is the difference between a HELOC and a home equity loan?
A HELOC is revolving — you draw what you need, repay it, and draw again, with interest charged only on the outstanding balance. A home equity loan is a lump sum loan with a fixed repayment schedule, similar to a term loan. For business owners who have ongoing or variable capital needs, a HELOC is generally more flexible and efficient. For a specific one-time purchase, a home equity loan may be a better fit.
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Are HELOC rates fixed or variable?
Most HELOCs carry a variable interest rate tied to a benchmark rate — typically the prime rate. This means your rate may change over time as market rates move. Some HELOCs offer a fixed-rate option for a portion of the balance. Your specific rate structure will be outlined in your loan offer — ask your funding specialist about rate options when reviewing your application.
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Is the interest on a business HELOC tax-deductible?
Interest on a HELOC used for business purposes may be tax-deductible as a business expense. The deductibility rules depend on how the funds are used and your specific tax situation. Consult your tax advisor or CPA before making decisions based on tax treatment — the rules around HELOC deductibility have changed in recent years and depend on the specific use of proceeds.
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Can I open a HELOC if I already have a mortgage?
Yes. A HELOC is typically structured as a second lien on your property, behind your existing primary mortgage. Your available credit limit is based on the equity remaining after your mortgage balance — for example, a home worth $500,000 with a $250,000 mortgage has $250,000 in equity, and you might qualify for a HELOC up to 80–85% of the home’s value minus the existing mortgage.
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What happens to my HELOC if I sell my home?
If you sell your home while a HELOC is outstanding, the HELOC balance must be paid off at closing — typically from the sale proceeds, along with your primary mortgage. Before selling, confirm the outstanding HELOC balance and factor it into your closing calculations. If you are planning to sell your home in the near term, a HELOC may not be the right financing vehicle for your business needs.
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How is SBG Funding different from a bank?
The primary differences are speed, flexibility, and qualification criteria. Banks typically require 2–8 weeks for approval, collateral, a hard credit pull, and often a FICO score above 680. SBG Funding makes same-day decisions, requires no collateral, performs no hard credit inquiry, and accepts FICO scores of 500+. We evaluate more than 50 factors — including your revenue history and deposit patterns — rather than relying primarily on credit score.
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What documents do I need to apply for a HELOC?
To get started, you need your 4 most recent business bank statements and basic information about your home — estimated value and current mortgage balance. For the full HELOC application, you will also need personal tax returns, a recent mortgage statement, and documentation of your home’s value. Our team will provide a complete checklist after the initial review.
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Can I have both a HELOC and other SBG Funding products?
Yes. Many business owners use a HELOC alongside other SBG Funding products — for example, a HELOC for lower-cost capital reserves and a business line of credit for day-to-day operational cash flow. Contact your funding specialist to discuss the right combination for your situation.
Your Home Equity Is Working Capital Waiting to Happen
If you’ve built equity in your home, a business HELOC gives you revolving access to lower-cost capital — flexible enough to cover any business need, reusable as you repay, and often at rates that unsecured business loans can’t match. Apply online in minutes and our team will assess your eligibility.
