SBA 7A Loans

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Establish the credit you need to build your empire

Startups and small business—look no further, SBA 7A loans offer the financial perks you’ve been waiting for. From enviable interest rates to low down payments, and long-term repayment options, what more you could possibly need from a loan?

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At a Glance

SBA 7(a) Loans: More flexibility than a veteran yoga teacher

Dealing with broken or faulty equipment is an enviable part of owning a business. Unfortunately, most companies can’t afford the hefty price tag attached to the proper tools they need to power daily operations. Equipment financing solves this problem by providing you business with the extra capital you need to get your hands on some of the most advanced, innovative technology hitting today’s market.

The Benefits of a Government-Backed Loan

Small businesses can look forward to significant perks with an SBA 7(a) loan, such as enviable rates and special terms that you wouldn’t qualify for with a traditional bank loan. From long repayment periods to fixed interest rates and special-case principal amount forgiveness, government-backed loans come with many benefits, including:

• Highly competitive, low-interest rates
• Longer loan terms, up to 25 years
• Fixed and variable-rate options
• Many businesses are eligible to qualify
• Low down payments around 10-20%
• Borrowers don’t need to worry about balloon payments
• Other advantages include monthly payments, fixed interest rates, special-case principal amount forgiveness, and long repayment terms.

SBA 7(a) Loan Amounts

The maximum loan amount for a 7(a) loan is $5 million. However, most businesses won’t need to take out that much. If you need an SBA 7(a) loan of less than $25,000, you probably won’t need to put up any collateral. On the other hand, for higher loans of $350,000 or more, you’ll be required to hand over the maximum possible amount of collateral to reduce the risk of default. But, if you don’t have enough business collateral, you do have the option to use various forms of personal collateral to qualify.

SBA 7(a) Eligibility

So, you’re interested and ready to apply. The criteria to determine eligibility primarily relies on factors such as how your business makes a profit, your credit history, and where your company operates, in addition to other factors, such as:

• Must be operating for-profit
• Startups and small businesses with revenue of $5 million or less
• Have reasonable invested equity
• Use alternative financial resources, including personal assets, before seeking financial assistance
• Be able to demonstrate a need for a loan
• Utilize funds for business expenses
• Must have good standing with personal and business credit
• Can demonstrate the ability to repay a new secured loan, existing business expenses, and a draw for a business owner.
• Not be delinquent on any current debt obligations to the U.S. government