7(a) loans

The SBA Loan Experts® is not associated with SBA.gov and is a private business providing Consulting Services for Small Businesses.

1844-SBA4BIZ
1844-722-4249

The 7(a) loan program is SBA’s primary business loan program for providing financial assistance to small businesses.

Content

What is a 7(a) loan?

The 7(a) Loan Program, SBA’s primary business loan program, provides loan guaranties to lenders that allow them to provide financial help for small businesses with special requirements. 7(a) loans can be used for:

Acquiring, refinancing, or improving real estate and buildings
Short- and long-term working capital
Refinancing current business debt
Purchasing and installation of machinery and equipment, including AI-related expenses
Purchasing furniture, fixtures, and supplies
Changes of ownership (complete or partial)
Multiple purpose loans, including any of the above

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs. This also includes recommending you for an SBA 7(a) Working Capital Pilot (WCP) loan, if your business qualifies.

Am I eligible?

To be eligible for 7(a) loan assistance, businesses must:

Be an operating business
Operate for profit
Be located in the U.S.
Be small under SBA Size Requirements(Link is external)
Not be a type of ineligible business(Link is external)
Not be able to obtain the desired credit on reasonable terms from non-Federal, non-State, and non-local government sources
Be creditworthy and demonstrate a reasonable ability to repay the loan

Read more about Terms, conditions, and eligibility.

How do I apply?

You can use SBA’s Lender Match tool to connect with a participating SBA lender. You will apply for your loan directly through your lender.

The contents of the loan application vary depending on the size of the loan and the lender’s processing method. Your lender will help you determine which documents you’ll need based on your individual circumstances.

You will always work directly with your lender and not with SBA.

How do I pay back my 7(a) loan?

Loan repayment terms vary according to several factors.

Most 7(a) term loans are repaid with monthly payments of principal and interest from the cash flow of the business
Payments stay the same for fixed-rate loans because the interest rate is constant
For variable rate loans, the lender may require a different payment amount when the interest rate changes

Existing borrowers

Existing borrowers can create an account in the MySBA Loan Portal (lending.sba.gov) to monitor their loan status, view statements, payment history and more.

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) Working Capital Pilot (WCP) program

What is 7(a) WCP?

Beginning August 1, SBA’s 7(a) WCP is a pilot loan program that offers monitored lines of credit within the 7(a) loan program.
7(a) WCP has been engineered to:

Support a range of financing needs for growing small businesses
Bring together the best features of the existing permanent 7(a) line of credit delivery methods
Provide financing for domestic and/or export purposes
Offer one-on-one counseling with SBA’s subject-matter experts to both small businesses and lenders

Who can benefit?

Consider a 7(a) WCP loan if your small business:

Can benefit from a line of credit up to $5 million
Operates in industries like manufacturing, wholesale, or professional services
Has at least one-year of operating history
Can produce timely and accurate financial statements, accounts receivable and accounts payable agings, and inventory reports
Wishes to fulfill large contracts or projects and/or borrow against accounts receivable or inventory

What are the terms?

Maximum loan amount	$5,000,000
Loan guarantee	85% $150,000 or less 75% if greater than $150,000
Maximum loan maturity	60 months
Interest rates	$50,000 or less: Cannot exceed base rate +6.5% $50,001 – $250,000: Cannot exceed base rate +6.0% $250,001 – $350,000: Cannot exceed base rate +4.5% $350,001 and greater: Cannot exceed base rate +3.0%

How can I apply?

Use SBA’s Lender Match tool to be matched with a participating SBA lender that can provide you with funding at competitive rates and fees.

Get help

Although SBA does not provide 7(a) loans directly to borrowers, we can help with the process.

SBA District Offices can provide you with in-person, online, or telephone assistance.

SBA’s network of Resource Partners throughout the country is also available to help small businesses.

Quick Links

Services

Get in touch

TheSbaLoanExperts.Com is not affiliated with SBA.GOV, The operator of this website is NOT a lender, does not make offers for loans, and does not broker online loans to lenders or lending partners. Customers who arrive at the website are paired with a lender or a lending partner, and redirected only to lenders or lending partners who offer business loan products.