SBA 7(A) Guaranteed Loan Overview
- All applicants must be eligible to be considered for a 7(a) loan. The eligibility requirements are designed to be as broad as possible in order that this lending program can accommodate the most diverse variety of small business financing needs. All businesses that are considered for financing under SBA’s 7(a) loan program must: meet SBA size standards, be for-profit, not already have the internal resources (business or personal) to provide the financing, and be able to demonstrate repayment.
- Up to 85 percent of loans of $150,000 and less, and up to 75 percent of loans between $150,000-$2,000,000.
- Interest rates may be fixed or variable.
- Loans of $50,000 or more must not exceed Prime Plus 2.25 percent if the maturity is less than 7 years, and Prime Plus 2.75 percent if the maturity is 7 years or more.
- Loans of $25,000 - $50.000, maximum rates must not exceed Prime Plus 3.25 percent if the maturity is less than 7 years, and Prime Plus 3.75 percent if the maturity is 7 years or more.
- Loans of $25,000 or less, the maximum interest rate must not exceed Prime Plus 4.25 percent if the maturity is less than 7 years, and Prime Plus 4.75 percent, if the maturity is 7 years or more.
- Real estate and equipment – 25 years
- Working capital - 7 years
Eligibility Criteria:
Percentage of Guarantee:
Interest Rate:
Terms: