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.