An SBA 7a loan is a commercial loan that can be used for property acquisitions, light rehab, construction/CapEx, working capital, equipment, debt consolidation, or business acquisitions. Backed by the U.S. Small Business Administration (SBA), these loans are designated for small business owners looking to infuse capital back into their business.
SBA 7a Loan Snapshot
$250,000- $5 million
AmountUp to 90%
LTV / LTCUp to 10 years
TermPrime +1.0%-2.5%
Current Interest RatesWays to Use a SBA 7a Loan
Breaking Down a 7a Loan
SBA 7a loans offer a variety of use cases across commercial real estate and business investments. With maximum leverage, SBA 7a loans require a minimal down payment compared to conventional financing, allowing you to preserve more cash to put back into your business.
Role of the SBA
You probably noticed that the SBA isn’t part of the adjacent pie chart. While 7a loans are under the SBA umbrella, the SBA isn’t involved in funding. Instead, they partially guarantee the loan (usually up to 85%) and an SBA-approved lender (like us) handles the financing. This guarantee lowers our risk and enables us to offer 7a loans with high leverage and competitive interest rates.
Rates
7a loans typically come with floating interest rates that fluctuate quarterly based on prime rate. Our rates start at prime +1.0%, which is fixed for five years. 7a interest rates are subject to SBA maximums, so even if your rate is floating, there’s a cap in place that keeps this loan affordable for small businesses.
Repayment
Our 7a loans provide a 10-year term and 25-year amortization for commercial real estate. This long repayment cycle keeps your monthly payments to a minimum.
Collateral
Because 7a loans require very little down, they’re full recourse – you’ll need to put down a personal guarantee and may be required to put down personal assets to meet SBA collateral guidelines.
Business Eligibility Requirements
To qualify for a 7a loan, your business should:- Identify as “small,” according to the SBA’s evaluation of your industry
- Operate as a for-profit company in the continental US
- Have a tangible net worth of less than $15 million
- Have an average net income of less than $5 million
- Demonstrate increasing revenue and income trends
Borrower Eligibility Requirements
To qualify for a 7a loan, you should:- Have a credit score of 680 or greater
- Possess a net worth of at least $1.25 million or 30% of total financing (whichever is greater)
- Have no bankruptcies in the last five years
How to Apply
Complete your entire application online through our secure portal.
Step1
Register for our secure online portal.
Step2
Fill out and submit an online application (takes less than 30 minutes).
Review our SBA 7a document checklist.
Step3
Get connected with a loan officer and get your quote.
