Do you need financial help to kick start or expand your business? If yes, your help is here. Apply here at the SBA 7(a) loan application portal and enjoy financial help with special requirements.
Below, you will see all you need to know about the SBA 7(a) loan application: how and where to apply. Also, check out the eligibility requirement to qualify for 7(a) loans.
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What is SBA 7(a) Loan?
An SBA 7(a) loan is a small-business loan backed in part by the US Small Business Administration and granted by a private lender. According to the Congressional Research Service, SBA 7(a) loans are the most prevalent type of SBA loan, with the SBA guaranteeing almost 52,000 7(a) loans in the fiscal year 2021. It provides financial assistance to small businesses with unique needs.
What Can I Use 7(a) Loans For?
- Short and long-term working capital
- Real estate purchase
- Refinance current business debt
- Purchase furniture, fixtures, and supplies
7(a) Loan Eligibility Requirements
See how you can qualify for SBA 7(a) loan below.
- Your business must be profit-driven.
- You base your business in the United States.
- Must use the money towards a good business venture.
- Be able to show that you require a loan.
- Have a reasonable amount of money in the bank.
Types of 7(a) Loans
Below are the types of 7(a) loans and their features:
- 7(a) express loan
Max loan amount = $500,000
Max SBA guarantee = 50%
- Standard 7(a) loan
Max loan amount = $5 million
Max SBA guarantee = 85% for loans up to $150,000 and 75% for loans greater than $150,000
- 7(a) small loan
Max loan amount = $350,000
Max SBA guarantee = 85% for loans up to $150,000 and 75% for loans greater than $150,000
- Export express loan
Max loan amount = $500,000
Max SBA guarantee = 90% for loans of $350,000 or less and 75% for loans more than $350,000
- International trade loan
Max loan amount = $5 million
Max SBA guarantee = 90%
- Export working capital loan
Max loan amount = $5 million
Max SBA guarantee = 90%
- CAPLines of credit
Max loan amount = $5 million
Max SBA guarantee = 85% for lines up to $150,000 and 75% for lines greater than $150,000
SBA 7(a) Application Requirements
Before you can apply for SBA 7(a) loan, you need to gather these documents:
- Business license or certificate
- Business financial statements (Profit and loss statement & Projected financial statement)
- Background and financial statements
- Borrower information form
- Income tax returns
- Loan application history
- Business overview and history
- Business lease
SBA 7(a) Loan Application Guidelines
To apply for a 7(a) loan, you’ll need to apply with an SBA lending partner, such as a bank or credit union. The lender will submit your application to the SBA for a loan guarantee, which means that if you default on the loan, the SBA will return the lender the guaranteed amount.
Follow the guide below to see how you can apply for SBA 7(a) loan.
- Locate an SBA 7(a) lender: You can do this by using Lender Match. Read more on how to use Lender Match.
- Get your documents together and submit your application: Your SBA lender will be able to assist you in gathering the necessary documentation so that you may complete and submit an SBA 7(a) loan application.
See the required documents above.
Note: The documents will differ depending on the type of SBA 7(a) loan and the lender.
- Wait for your loan to be approved and closed
