SBA 7(a) Loan

The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for:

• Short- and long-term working capital
  
• Refinance current business debt
  
• Purchase furniture, fixtures, and supplies
  

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.

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

• Operate for profit
  
• 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
  

Benefits

• Competitive terms:
  SBA-guaranteed loans generally have rates and fees that are comparable to non-guaranteed loans.
• Counseling and education:
  Some loans come with continued support to help you start and run your business.
• Unique benefits:
  Lower down payments, flexible overhead requirements, and no collateral needed for some loans.