SBA 7(a) Loan Details
Loan Purpose: Commercial Real Estate acquisition, refinance & construction / Business Acquisition / Partner Buy Out / Debt Refinance / Franchise along with Working Capital in conjunction with these types of loans.
Loan Amount: $350,000 to $5,000,000
Equity Requirement: Contingent upon type of loan
- 10% down & sometimes less for real estate acquisition & new construction
- 10% down or more for Business Acquisitions
- 10% down or more for Franchise Start Ups
- 0% down for Partner Buy Outs & Debt Refinance
Interest Rate: Competitive Risk Based Pricing
Terms: 7 to 25 years based on the loans use of proceeds. No balloons as all loans are fully amortizing over the life of the loan.
Prepayment Penalty for loans > 15 years: Declining years 1 through 3 (5% year 1, 3% year 2, 1% year 3, 0% thereafter)
Fees: One-time SBA loan guarantee fee based on loan size.
Deposits: Good faith deposit required with submission of loan to underwriting and to be used towards a portion of the loan closing costs.
Collateral: First lien on all assets being financed.
Personal guarantees: For all individuals owning 20% or more. Corporate guarantees of affiliated companies may be required.
Industries: All for-profit businesses that meet SBA eligibility requirements.
Timing: Term Sheets within 24/48 hours of minimum information to qualify, Commitment Letters typically issued within 5 to 10 business days from submission to underwriting and Closing within 45–60 days of signed commitment letter.