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7(a) Loans

SBA 7(a) Loan

Don't let the fact that you don't have a track record of strong cash flow or a perfect credit score discourage you from pursuing your aspirations. If you qualify and get approved, the SBA will guarantee up to 90% of the loan amount, which means that the lender is taking on less risk and can, therefore, offer you better loan conditions.

SBA 7(a) Eligibility Requirements

Don't let the fact that you don't have a track record of strong cash flow or a perfect credit score discourage you from pursuing your aspirations. If you qualify and get approved, the SBA will guarantee up to 75%-90% of the loan amount, which means that the lender is taking on less risk and can, therefore, offer you better loan conditions.

SBA 7(a) Legal and Operational Requirements

  • You must be officially registered as a for-profit business

  • Your business must be physically based in the United States, and you must be doing business within the U.S.

SBA 7(a) Financial Requirements

  • Your business must have fewer than 500 employees, and less than $7.5 million revenue on average each year for the past three years

  • Your small business must be in an SBA-eligible industry (speculative, illegal and non-profit businesses don’t get to play). Learn more about Eligible and Ineligible Industries for SBA 7(a) Loans

  • You’ll need to show a sound business purpose for the loan you’re requesting.

Other Beneficial Business Qualities

  • A good credit score, preferably above 680

  • A history free from recent bankruptcies, foreclosures, or tax liens

  • A business that has been in operation for at least two years

  • The ability to provide collateral for loan requests over $25,000

  • The ability to make a down payment of 10% if your intended use of funds is to purchase a business, commercial real estate, or business-related equipment.

  • Sufficient cash flow to meet your debt obligations

  • Sufficient working capital (once you subtract liabilities from assets)

​​Ineligible businesses

  • Loan packaging, speculation, gambling, investment or lending companies, or where the owner is on parole.

  • Real estate investment firms.

  • Dealers of rare coins and stamps are not eligible.

  • Firms involved in lending activities, such as banks, finance / leasing companies, insurance companies (not agents).

  • Pyramid sales plans, where a participant's primary incentive is based on the sales made by an ever-increasing number of participants. Such products as cosmetics, household goods, and other soft goods lend themselves to this type of business.

  • Charitable, religious, or other non-profit institutions, government-owned corporations, consumer and marketing cooperatives.

Forms & Documents
to apply.

SBA Form 1919
SBA Form 413
Business financial statements
Ownership and affiliations
Business license or certificate
Loan application history
Income tax returns
Resumes
Business overview & history
Business lease

If you are buying an existing business,

you need the following documents to apply

Current balance sheet, Loss / Profit statement
Upload
Proposed bill of sale
(terms of sale)
Upload
Franchise, jobber, or licensing agreements
Upload
Federal income tax returns for the previous 3 years
Upload

Asking price with schedule of inventory, equipment, and furniture and fixtures

Upload
Proof of equity
injection
Upload
You may be required to submit more SBA forms based on the specific use of proceeds or fees paid on a loans package or to a broker or agent.
Loan repayment
​

  • Most 7(a) term loans are repaid with monthly payments of principal and interest

  • Payments stay the same for fixed-rate loans because the interest rate is constant

Existing borrowers

 

Existing borrowers can create an account in the MySBA Loan Portal to monitor their loan status.

Payments can only be made using the MySBA Loan Portal for SBA-purchased 7(a) loans. All others can continue to set up and manage online payments at Pay.gov.

7(a) Small business

SBA Express Loan

Wish the SBA Express program, the SBA will respond to your application within 36 hours.

SBA Export Express Loan

SBA Senior International Credit Officers can provide in-house training to help lenders become proficient in the Export Express program. For more information on this training or for application assistance, contact your local U.S. Export Assistance Center.

CAPLINES

CAPLines is an umbrella program that helps small businesses meet their short-term and cyclical working-capital needs. It features four lines.

  • The maximum loan amount for a Capline loan is $5 million. However, the actual amount you can receive will depend on your business's financial needs and your ability to repay the loan.

  • With the exception of the Builders CAPLine, the maximum maturity on a CAPLine loan is 10 years. Builders CAPLine loans must not exceed five years. Holders of at least 20 percent ownership in the applicant business are required to guarantee the loan.

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