SBA 7A Loan

SBA 7A Loan

The 7A Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. Since 7(a) loans are backed by the Small Business Administration (SBA), lenders are able provide lower interest rates and longer repayment terms compared to other business financing options. Appropriate for longer term financing for businesses with net worth below $15 million and an average net income below $5 million. Lenders usually prefer the business to have been operating for 2+ years, but start-ups can be approved in some cases.

  • Rates as low as prime +2.75%
  • Up to 100% loan-to-value
  • Loan Amounts up to $5M
  • Terms of up to 25 years for Real Estate
  • Terms of up to 10 years for equipment, working capital
  • No balloon payments

Am I eligible?

To be eligible for 7(a) loan assistance, businesses must:

  • Operate for profit
  • Owner Occupied
  • Be considered a small business, as defined by SBA
  • Be engaged in, or propose to do business in, the United States or its possessions
  • Have reasonable invested equity
  • Use alternative financial resources, including personal assets, before seeking financial assistance
  • Be able to demonstrate a need for a loan
  • Use the funds for a sound business purpose
  • Not be delinquent on any existing debt obligations to the U.S. government

What can an SBA 7(a) loan be used for?

  • Business Acquisitions
  • Renovations
  • Working Capital
  • Business Debt Refinancing
  • Start Up Project
  • Business Expansion
  • Commercial Real Estate
  • Franchise Purchases
  • Ground-Up Construction
  • Equipment Purchases
  • Partner Buyouts
  • Business Debt Consolidation

Required SBA Forms

Form 413Form 1919