SBA 7(a) Loans Complete Guide
Everything you need to know about SBA 7(a) loans - the most popular SBA program. Learn how to secure up to $5M in flexible funding for your small business.
What are SBA 7(a) Loans?
SBA 7(a) loans are the Small Business Administration's primary loan program, providing flexible financing for a wide variety of business purposes. The SBA guarantees 75-85% of the loan amount, reducing risk for lenders and making it easier for small businesses to qualify.
- • Lower down payments (10-15% vs 20-30%)
- • Longer repayment terms (up to 25 years)
- • Competitive interest rates
- • No prepayment penalties
- • Flexible use of funds
- • Working capital
- • Equipment purchases
- • Real estate acquisition
- • Business expansion
- • Debt refinancing
SBA 7(a) Loan Terms & Structure
Term Length by Use:
- • Working capital: Up to 10 years
- • Equipment: Up to 10 years
- • Real estate: Up to 25 years
- • Business acquisition: Up to 10 years
Interest Rates (2026):
- • Prime + 2.75% to 4.75%
- • Fixed or variable rates available
- • Lower rates for smaller loans
- • Competitive with conventional loans
SBA 7(a) Loan Eligibility Requirements
✅ Basic Requirements:
- Small Business: Meet SBA size standards
- For-Profit: Must be for-profit business
- Owner Investment: Inject own time/money
- Good Character: Pass character evaluation
❌ Restrictions:
- Prohibited Industries: Gambling, lending, speculation
- Passive Investment: Real estate investment only
- Non-profits: Must be for-profit entity
- Size Limits: Cannot exceed industry standards
SBA 7(a) Application Process
Find Lender
Find an SBA preferred or express lender in your area
Prepare Documents
Gather financial statements, business plan, and personal information
Submit Application
Complete SBA forms and submit to chosen lender
Close Loan
Complete underwriting process and close on funding
Required Documentation
📊 Financial Documents:
- • Business financial statements (3 years)
- • Personal financial statements
- • Business and personal tax returns
- • Bank statements (3 months)
- • Accounts receivable aging
📋 Business Documents:
- • Business plan with projections
- • Legal structure documents
- • Business licenses
- • Lease agreements
- • Purchase agreements (if applicable)
Ready to Apply for SBA 7(a) Loan?
Get our comprehensive SBA loan application guide with step-by-step instructions, required documents checklist, and lender directory.
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