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SBA 7(a) Loan Program

This program provides loans to small businesses unable to secure conventional financing on reasonable terms from traditional lending channels. The program operates through private-sector lenders that provide loans, of which a significant portion is guaranteed by the SBA.

Under this loan program lenders generally lend up to $1,333,333; but there are select lenders that loan as high as $2,000,000.

SBA loans are generally intended to encourage longer-term business financing, but actual loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed.

Whether the applicant already owns a business, is starting, expanding or purchasing a business, he/she can use the loan proceeds for the following purposes:

Commercial real estate purchase, construction, improvements (amortized up to 25 years) Leasehold improvements (up to 10 years) Consolidate debt (up to 10 years) Purchase a business (up to 10 years) Furniture, fixtures, machinery and equipment purchases (up to 10 years) Working capital (up to 7 years)

When a business is requesting funds to be used for a number of different purposes, the term of the loan will be a blended term.

Click here to learn about the SBA 504 Loan Program.
Click here to return to the main SBA web page.

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