SBA 7a Loans

High-leverage financing
for small business uses

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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

Amount

Up to 90%

LTV/LTC

Up to 10 years

Term

Prime +1.0%-2.5%

Current Interest Rates

Ways to Use a SBA 7a Loan

Property Acquisitions
Working Capital
Eligible Fixed Business Assets

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.

Breaking Down a 7a Loan

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

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

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.