SBA 7(a) Loans

Small Business Administration 7(a) Loans

SBA 7(a) loans can be used for almost any business purpose. They typically have long repayment terms and low interest rates. This is the loan for you if you are looking for affordable working capital solutions

Purpose: Working capital up to $5 million.

Eligibility: Almost any type of for-profit business is eligible.Commercial real-estate must be partially occupied (51%) by borrower.  

Use of Proceeds:

• Real-estate acquisition, construction, or refinance - up to 90% financing available 

• Business Acquisition - up to 80% financing available 

• Equipment Acquisition - up to 90% financing available 

• Debt Refinance - up to 100% financing available 

Terms:

• Up to 25 years for real-estate financing

• Up to 10 years for equipment or business acquisition financing

• Up to 7 years for permanent working capital

• All loans are fully amortized 

 Additional SBA Requirements:

• Demonstrated experience: Businesses need to show they have sufficient industry or business management experience and a strong business plan

• Larger down payments: These loans typically require an equity injection or down payment of at least 20% to 30% of your total project costs, or $20 to $30 for every $100 you want to borrow.

• Excellent credit: The SBA looks for excellent credit and the best borrowers.  You need a minimum credit score of at least 640 and more like 700, high net worth, and real estate with significant equity to get approved.