SBA 7(a) Loans

SBA 7(a) Loans

Funding for startups, existing businesses, acquisitions, expansion, working capital, and business growth.

Program Rates & Terms

• Loan Amount: Up to $5,000,000
• Estimated Rate: Prime + 2% to 3.5%
• Typical Rate Range: Approximately 8% to 11%
• Term: 10 to 25 years depending on loan purpose
• Down Payment: Typically 10% to 20%
• Prepayment Penalty: May apply on larger loans

Qualification Guidelines

• Credit: 650+ minimum, 680+ preferred
• Eligible Borrowers: Startups and existing businesses
• Startup Income: Personal income and reserves may be reviewed
• Existing Business Income: Must typically show 1.25x DSCR and positive EBITDA
• Acquisition Loans: Seller must typically show 1.25x DSCR
• Experience: Relevant industry or management experience is preferred

Collateral

• Business assets may be required
• Personal guarantee is typically required
• Real estate may be considered if available

Required Documents

• 2–3 years business tax returns from seller for acquisition
• 2–3 years business tax returns for existing business
• Personal tax returns
• Personal financial statement
• Business plan
• Financial projections
• Debt schedule
• Resume

Best Fit For

• Business expansion
• Business acquisition
• Working capital
• Equipment purchases
• Commercial real estate
• Startup funding with strong borrower profile

Key Insight

Strong management, clean financials, sufficient cash flow, and organized documentation are critical for SBA 7(a) loan approval.