SBA 7(a) Loans
The “Growth Generator”
Our SBA 7(a) loan program is designed to help your business grow by providing much needed capital with a manageable downpayment and low interest rates.
SBA 7(a)
Loans
The “Growth Generator”
Our SBA 7(a) loan program is designed to help your business grow by providing much needed capital with a manageable downpayment and low interest rates.
What can a SBA 7(a) Loan be used for?
Our SBA 7(a) loan program is the most flexible of the SBA loan options and can be used for a multitude of things that can help propel your business forward. With such a variety of uses, SBA 7(a) loans continue to be the best options for owners of small to midsized businesses looking to fund the growth of their company.
Some common uses for the SBA 7(a) loan:
- Business Acquisitions
- Working Capital
- Franchise Purchases
- Renovations
- Ground-Up Construction
- Commercial Real Estate
- Business Debt Refinancing
- Equipment Purchases
- Start Up Projects
- Partner Buyouts
- Business Expansion
- Business Debt Consolidation
SBA 7(a) Frequently Asked Questions
Who is Eligible for the SBA 7(a) Loan?
- For-profit, non-publicly traded businesses
- Tangible business net worth (including affiliates) not to exceed $15 million
- Average net income of the business not to exceed $5 million over the previous two years
- Ownership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents
- Proceeds must directly benefit the small business
Who is NOT Eligible for the SBA 7(a) Loan?
- Non-profits (except sheltered workshops)
- Passive holders of real estate and/or personal property
- Lending institutions (mortgage brokers and correspondent lenders are eligible)
- Life insurance companies (franchised agents are eligible)
- Businesses located in a foreign country
- Businesses selling products or services through a pyramid plan
- Gambling concerns
- Businesses which restrict patronage
- Government owned entities (excluding Native American tribes)
- Consumer and marketing cooperatives (producer cooperatives are eligible)
- Businesses engaged in loan packaging
- Businesses that have previously defaulted on a Federal loan
- Businesses engaged in political or lobbying activities
What can a 7(a) loan NOT be used for?
- Transactions that do not directly benefit a subject business (investment-only transactions)
- “Cash out” transactions
- Refinancing owner debt or providing funds to a person or owner
- Buying into a business where the seller remains a part owner (business acquisitions must result in a 100% change of ownership)
What are the benefits of an SBA 7(a) Loan?
- Longer-term financing than conventional loans (up to 25 years)
- Fully-amortizing loans with no balloons, which removes the need to seek reapproval (or new financing) every few years
- A smaller down payment than conventional financing, which allows you to conserve working capital
- Proceeds to cover all of your business needs, including ground-up construction and business expansion
- No financial covenants, other than providing annual tax returns and financial statements
- Prepayment penalty is minimal or nonexistent
- Loan payments cannot be accelerated as a result of an economic downturn as long as you make your payments on time
Loan Amounts
$200,000 – $5,000,000
Terms
10 year – 25 years
Rates
6% – 8%
How to Apply
01- Apply
Fill out our quick application and upload some basic documents, and our Pronto software will go to work on issuing you an approval in less than 2 hrs.
02- Connect
Once you’ve received your approval, one of our Loan Specialists will reach out and walk you through next steps.
03- Fund
After everything is reviewed and approved you’ll be on your way to growing your business and creating wealth.
