SBA 7(a) Loans for Helping Your Small Business Grow
Whether you're looking to buy equipment, purchase real estate, or simply need working capital, SBA 7(a) loans can help make it happen.
Why Small Business Owners Love them?
Low Down Payments
Keep more of your cash while investing in your business.Flexible Terms
Longer repayment terms means lower monthly paymentsCompetitive Rates
Take advantage of lower interest rates than many other financing optionsSupport for New & Existing Businesses
Perfect for startups or those looking to expand
SBA 7(a) loans are designed to help small business owners get the funding they need to start, expand, or improve their business. Backed by the Small Business Administration (SBA), these loans offer flexible terms and affordable interest rates, making them a great option for business owners looking for financial support without the burden of large upfront costs.
SBA 7(a) Loan Types
Standard 7(a)
Maximum Loan Amount
$ 5 million
Maximum LTV
90%
Interest Rate
Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility Decision
By the SBA. Qualified lenders may be granted delegated authority (PLP) to make eligibility determinations without SBA review
Revolving Lines of Credit
Up to 10 years (permitted only under CAP Lines submission (See below)
Forms
SBA Form 1919 and SBA Form 1920 are required for every loan (other SBA Forms may be required)
Collateral
Lenders are not required to take collateral for loans up to $25,000. For loans in excess of $35,000, the SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount. If business fixed assets do not "fully secure" the loan the lender may include trading assets (using 10% of current book value for the calculation), and must take available equity in the personal real estate (residential and investment) of the principals as collateral
Credit Decision
By the SBA. Qualified lenders may be granted delegated authority (PLP) to make credit decisions without SBA review
7(a) Small Loan
Maximum Loan Amount
$ 350,000
Maximum LTV
90%
Interest Rate
Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility Decision
By the SBA. Qualified lenders may be granted delegated authority (PLP) to make eligibility determinations without SBA review
Forms
SBA Form 1919 and SBA Form 1920 are required for every loan (other SBA Forms may be required)
Collateral
Lenders are not required to take collateral for loans up to $25,000. For loans over $25,000, up to and including $350,000, the lender must follow the collateral policies and procedures that it has established and implemented for its similarly-sized non-SBA-guaranteed commercial loans, but at a minimum the lender must take a first lien on assets financed with loan proceeds and lender must take a lien on all of the applicant’s fixed assets including real estate. Lender is not required to take a lien against applicant’s real estate when the equity is less than 25% of the fair market value. The lender may limit the lien taken against real estate to the loan amount.
Credit Decision
By the SBA. Qualified lenders may be granted delegated authority (PLP) to make credit decisions without SBA review
Chart provided by sba.gov
SBA Express
Maximum Loan Amount
$ 350,000
Interest Rate
Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum
Eligibility Decision
Made by the lender
Revolving Lines of Credit
Up to seven years with maturity extensions permitted at the outset
Forms
Lender primarily uses own forms and procedures, plus SBA Form 1919
Collateral
Lenders are not required to take collateral for loans up to $25,000. May use their existing collateral policy for loans over $25,000 up to $350,000
Credit Decision
Made by the lender
Purchase
Lender may request expedited SBA purchase on small loans or in situations where liquidation may be delayed
Chart provided by sba.gov
FAQS
What is the advantage of an SBA loan?
SBA Loans are generally easier to qualify for and have better terms for small businesses who don't have established business credit or have less than perfect credit.
Who is eligible for an SBA 7(a) loan?
Businesses must meet certain size standards and be located in the United States. They must also have a demonstrated need for the loan and be unable to obtain financing from other sources on reasonable terms
What can I use an SBA 7(a) loan for?
You can use a 7(a) loan for a variety of business purposes, including purchasing equipment, refinancing debt, or expanding your businesses.
How long does it take to get an SBA 7(a) loan?
The approval process can take several weeks or even months, depending on the complexity of your application and the current processing times.
What is the SBA's guarantee for 7(a) loans?
The SBA guarantees up to 85% of the loan amount for loans up to $250,000. For loans between $250,000 and $5 million, the guarantee is up to 75%
Do I need collateral for an SBA 7(a) loan?
Collateral requirements for SBA 7(a) loans vary depending on the loan amount and the borrower's creditworthiness. For smaller loans, collateral may not be required.
How do I apply for an SBA 7(a) loan?
You can apply for an SBA 7(a) loan through HAF Business Associates!
Give us call to get started today and one of our qualified Loan Officers will guide you through the application process and submit your application to the SBA for approval.
HAF Business Associates provides commercial loans and business financing solutions. All loan programs are subject to approval based on applicant creditworthiness, property eligibility, and other factors. Loan terms, interest rates, and fees are subject to change without notice. This website is for informational purposes only and does not constitute a commitment to lend. HAF Business Associates is not responsible for any errors or omissions in the information provided. The availability of these products may vary based on individual qualifications and state regulations. All loan programs and terms are subject to change without notice. To ensure that you are receiving the most up-to-date and accurate information, please contact us directly. Privacy Policy