SBA 7(a) Program

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.