What you need to know about SBA 7(a) loan program
Updated: Jul 11
The 7(a) loan program with the SBA is a great option for you if you're looking to raise capital for your business. You have very low interest rates, favorable loan repayment terms and no personal collateral required.
This is one of the most popular programs for small and midsize businesses because it’s guaranteed by the US government and offers better terms and leverage than you can hope to achieve through a conventional loan. You can borrow up to $5 million with a 7(a) loan program and have up to 10 years to repay most loans. You also have a choice between a variable rate and a fixed rate.
We will work with you to understand your requirements in detail and present them in the clearest best possible way for lenders to understand your needs and approve your request. We work with you to understand all the fine print and fees. We help you through the whole process. We select banks to work with on our platform that provide a smooth and stress-free process for funding approval.
Let’s highlight the specific qualifications which we will touch on as bare minimum set forth by the SBA. The use has to be related to expansion for your business or growth or refinancing. The 7(a) loan is perfect for mature businesses that need capital to execute on growth plans and cover future operating expenses with working capital or refinance more expensive business debt.
The SBA approval process will require a full underwriting and credit requirements. The qualifications that we find in applicants that get approved are a good personal credit score of 680 or better is a good range but you can qualify with a FICO of 640. Banks look at how much cash flow your business brings in. They want to see some profitability so that you can pay back the loan on time. Two years in business is a strict requirement that the SBA requires. This is not a great loan for startups; there are other SBA loans out there for startup businesses.