SBA 7(a) Loan

Overview

The SBA 7(a) program is the U.S. Small Business Administration's most widely-used loan. Loans are originated by banks and SBA-approved lenders and partially guaranteed by the SBA, which lets lenders extend longer terms and higher leverage than they might on a conventional commercial loan.

7(a) proceeds can be used for owner-occupied commercial real estate, business acquisition, working capital, equipment, debt refinance, and more. For real estate purchases, 7(a) is popular because it can finance up to 90% of the project, with terms up to 25 years on real estate-heavy deals.

Who it's for

Small business owners buying their own building
Buyers acquiring an existing business with real estate
Franchisees building or buying locations
Owner-operators expanding into a new commercial property

What's typically reviewed

Eligible small business under SBA size standards
Owner-occupancy (51%+ of building for existing, 60%+ for new construction)
Personal guarantees from 20%+ owners
Business cash flow sufficient to service the debt
Reasonable equity injection (typically 10%+)

This is a general description, not a guarantee of approval. Specific requirements vary by lender and program. Final qualification is determined during underwriting.

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