SBA 7(a) Loan Program

The “Swiss Army Knife” of SBA loan programs.

Maximum SBA 7(a) Loan Amount: $5 million or more for some states and programs

The SBA 7(a) loan is the U.S. Small Business Administration’s flagship loan program. We are the experts for SBA 7(a) loans over $350,000 in this “Swiss Army Knife” loan program. It can be used for the most variety of purposes. Use our suite of SBA loan calculators to find out how much you qualify for to buy a business, expand your company, buy commercial real estate or consolidate debt. Instantly prequalify with no credit check using our easy online Edge platform.

SBA 7(a) Loan Maturity

Up to 25 years with real estate. Use our Complete SBA Loan Calculator to estimate loan terms including maturity and interest rate. For working capital, business expansion, debt consolidation, goodwill portions or business purchase and other loan proceed uses — maturity is typically 10 years with no prepayment penalty.

SBA 7(a) Loan Interest Rate & Prepayment

  • Maximum WSJ published prime + 2.75%. As of August 2017, this is 7.00%.
  • No prepayment penalty for loans with maturities of 15 years or less.
  • For loans with maturities exceeding 15 years, the penalties are:
    • 5% in the 1st year
    • 3% in the 2nd year
    • 1% in the 3rd year

Who Qualifies for an SBA 7(a) Loan?

  • Must be a legal, for-profit U.S. business
  • There is no “minimum credit score” for SBA loans but rather a good “credit character” is required
  • Borrower(s) must be U.S. Citizen or green card holder
  • Prequalify today with no credit check with our Edge online platform.

SBA 7(a) Loan Use of Proceeds

What can you use an SBA 7(a) loan for?

  • Business Acquisition, expansion and renovation

  • Buy a business

  • Buy out your business partner

  • Buy a medical practice

  • Expand business by buying books of business (insurance, CPA)

  • Purchase equipment and fixtures

  • Working capital

  • Buy a law firm or CPA practice

  • New construction, purchase land or buildings

  • Lease-hold improvements

  • Refinance debt

  • Seasonal line of credit

SBA 7(a) Loan Benefits

Lower cost

Lower Interest Rate

Fixed maturity

Federally regulated

Long-term financing Improved cash flow

No prepayment penalty (under 15 years)

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