What is an 7(a) SBA Loan
The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is a good option when real estate is part of a business purchase, but it can also be used for:
-
Short- and long-term working capital
-
Refinancing current business debt
-
Purchasing and installation of machinery and equipment
-
Purchasing 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.
Am I eligible?
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
-
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
-
Be creditworthy and reasonably assure repayment of the loan
How do I use the 7(a) loan?
Basic uses for the 7(a) loan include:
-
Long- and short-term working capital
-
Revolving funds based on the value of existing inventory and receivables
-
The purchase of equipment, machinery, furniture, fixtures, supplies, or materials
-
The purchase of real estate, including land and buildings
-
The construction a new building or renovation an existing building
-
Establishing a new business or assisting in the acquisition, operation or expansion of an existing business
-
Refinancing existing business debt, under certain conditions
Applying
The contents of the loan application generally vary depending on the size of the loan and the lender's processing method. When you’re ready to apply, begin the process by contacting us to determine which documents they will require you to provide.