SBA 7a Loans

Commercial Real Estate Loans For Business Owners

SBA 7a Loans are designed to meet a variety of your small business's capital needs.

The Small Business Administration (SBA) 7a Loan Guarantee program is one of the most popular loan programs offered by the agency and is the basic SBA loan program. A 7a loan guarantee is provided to lenders to make them more willing to lend money to small businesses with "weaknesses" in their loan applications. For example, a business startup would not have cash flow history to provide a lender with assurance of continued ability to pay back a loan, so the SBA 7a loan would serve to provide the lender with an increased guaranty against default.

In most cases these loans will include a real estate component, but they cover a far wider range of acceptable uses of proceeds than the SBA 504 loan program. 

SBA loans are long term loans guaranteed by the federal government. This federal guarantee feature makes SBA loans very attractive to banks because it reduces the risk they have to a low 15% of the loan amount. 

Lower risk for the lenders leads directly to better terms and lower rates for our borrowers.

Who it's for:

  • Retail, professional and services firms with revenues under $25 million. 
  • Manufacturers, wholesalers and distributors, depending on the industry.

Loan uses

  • Working capital 
  • Inventory 
  • Equipment purchase 
  • Acquisition, expansion or renovation of owner-occupied commercial real estate 
  • Business acquisition or start-ups 
  • Debt refinancing

Features

  • Loan size. $100,000 to $4 million (based on amount of guarantee) 
  • Terms. Working capital and inventory: 5 –10 years; Equipment: up to 10 years 
  • Interest rate. Dependent on size, term and use of proceeds; based on prime plus a spread; adjusted quarterly 
  • Required collateral. Business assets; personal assets may be required 


Click here to inquire about SBA 7a Loans






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