The SBA 7(a) loan
program is the SBA’s primary lending program. The SBA guarantees up to $4.5
million of each loan made to small businesses. You can use loan proceeds for
short- and long-term working capital, revolving funds (based on the value of
inventory and receivables), purchases of equipment or real estate, construction
or renovation of buildings, and/or to establish a new business, or assist in
the acquisition, operations, or expansion of an existing business.
SBA 7(a) Loan Terms
- Loan amount: $25,000 to $5 million
- Interest rates: 2.25% to 4.75% plus a base rate (Prime, SOFR, or the SBA Peg
Rate)
- Repayment terms:Up to 10 years for working capital, or up to 25 years for
commercial real estate
- Down payment:Approximately 10% of the loan amount
SBA 7(a) Loan Qualification
Requirements
To be eligible, your business must:
- Operate as a for-profit company in the U.S. or its territories.
- Have reasonable owner capital to invest.
- Use alternative financial resources, including personal assets, before seeking financial assistance.