SBA 7(a), The Growth Generator

Designed to help your small business grow by providing much needed capital with a low down payment, longer repayment terms, and low interest rates.

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.

As of November 2022

What can an SBA 7(a) loan be used for?

Move Your Business Forward

Not Sure if you’re Eligible?

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
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)
Churches
Businesses engaged in loan packaging
Businesses that have previously defaulted on a Federal loan
Businesses engaged in lobbying
Businesses of a sexually prurient nature 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)
Projects that are purely speculative in nature (i.e. flipping houses, etc.)

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

Benefits of an SBA 7(a)

(up to 25 years)

This removes the need to seek reapproval (or new financing) every few years

Conserve more working capital compared to conventional loans

Proceeds to cover all of your business needs, including ground-up construction and business expansion

You only need to provide your annual tax returns and financial statements

How to get started.

Step 1

Complete your application.

Apply online directly with no hassle, and once we receive your application you’ll be contacted by one of our Loan specialists to help you understand next steps.

Step 2

Connect with a loan specialist.

Once you’ve received your approval, one of our Loan Specialists will reach out and walk you through next steps.

Step 3

Get approved. Get funded.

After everything is reviewed and approved, you’ll be on your way to closing your loan to help move your business forward.

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