The SBA 7(a) loan program is used by companies to acquire short-term working capital to purchase equipment, furniture and fixtures, make leasehold improvements, or acquire an existing business. Loan amounts range between $50 thousand – $5 million and is largely based on the use of funds.
Rate And Term
Both fixed and variable rates are available. Rates are subject to SBA maximums and are negotiated by the lender and the applicant.
Maturities are based on the type of collateral; such as, 25 years for real estate, 10 years for equipment and working capital.
Businesses seeking a SBA 7(a) loan must meet the following requirements:
- Must be for-profit.
- Must be located in and do business within the U.S.
- Cannot be a business that is considered ineligible for assistance by the SBA. A full list of ineligible businesses is available on the SBA website.
- Must have a satisfactory FICO SBSS score.
- Must have a feasible business plan.
- Cannot have access to alternative funds from other sources.