SBA 7(a) Loan

What is a 7(a) loan?
The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for:
  • Short- and long-term working capital
  • Refinance current business debt
  • Purchase furniture, fixtures, and supplies
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.
Business Eligibility Requirements
Businesses must meet certain eligibility requirements to get SBA 7(a) loan assistance which are:
  • Should operate legally and be defined small businesses as per SBA.
  • Annual average revenue must not exceed $7.5 million for the past three years and should have reasonably invested equity.
  • Must be in good standing with any debt responsibility to the U.S. government.

The 7(a) loan Utilization Options

7(a) loan can be used for several business purposes. Here are some of the ways you can utilize the loan amount approved.  

  • The purchase of equipment, machinery, furniture, fixtures, supplies, or materials 
  • The purchase of real estate, including land and buildings 
  • The construction a new building or renovation an existing building 
  • Establishing a new business or assisting in the acquisition, operation or expansion of an existing business 
  • Refinancing existing business debt, under certain conditions
Sources : 7(A)-Loans