SBA 7A Loans
SBA 7(a) Loans
SBA Express
The SBA Express program features an accelerated turnaround time for SBA review. The SBA will respond to your application within 36 hours.
Maximum loan amount | $350,000 |
Maximum SBA guarantee | 50% |
Interest Rate | Lenders and borrowers can negotiate rate, but not to exceed the SBA maximum. It can be fixed or variable. |
Eligibility decision | Made by the lender. |
Revolving lines of credit | Up to seven years with maturity extensions permitted at the outset. |
Working Capital | Repayment 5 – 10 years. |
SBA turnaround time | Within 36 hours or less. |
Collateral | Required but not for loans up to $25,000 For loans over $25,000 to $350,000, SBA allows lenders to use their existing collateral policy. |
Use of funds | Owner-occupied real estate purchase, debt refinance, working capital, equipment purchase, franchise financing, business expansion, partner buyout, marketing, employee hiring. |
Standard 7(a) Loan
The SBA 7(a) loan is the Small Business Administration’s most popular type of loan.
Maximum loan amount | Up to $5,000,000 |
Down Payment | 10% |
Maximum SBA guarantee | 85% for loans up to $150,000 and 75% for loans greater than $150,000 |
Term | Up to 25 years |
Interest Rate | Lenders and borrowers can negotiate interest rate, but it may not exceed the SBA maximum. |
Revolving lines of credit | Up to 10 years. |
Fees | Based on project size. Can be financed |
Collateral | Lenders are not required to take collateral for loans up to $25,000. For loans in excess of $25,000, the SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount. |
Use of Proceeds | Purchase or expand a business. Real estate purchase or refinance. Purchase a new land (including construction costs) Partnership buy-out Equipment, machinery, furniture, fixtures, materials or supplies, vehicles, inventory purchase. Franchise financing Working Capital |
SBA Turnaround Time | 5-10 business days |
Why This Loan? | No balloon payments Lower equity requirements Long-term financing Refinance existing business debt, under certain conditions. |
7(a) Small Loan
Export Express program provide exporters and lenders a streamlined method to obtain an SBA backed financing for loans and lines of credit up to $500,000.
Maximum loan amount | $350,000 |
Down Payment | 10% |
Maximum SBA guarantee | 85% for loans up to $150,000 and 75% for loans greater than $150,000. |
Interest Rate | Lenders and borrowers can negotiate the Interest rate, but may not exceed the SBA maximum. |
Collateral | Same rules apply as in Standard SBA 7(a).. |
Fees | Based on project size. Can be financed. |
Use of Proceeds | Same as in Standard SBA 7(a) loan. |
SBA Turnaround Time | 5-10 business days. |