Why SBA 7(a)
Some of the largest companies in the United States started with a SBA guaranteed loan. Nike, Under Armour, Chiplote and Apple started with such a loan. Over 23 billion was funded through the 7(a) program in fiscal year 2024. Many believe mistakenly they don’t qualify under this program or they are intimidated by the process. Give us a call, lets have a conversation and see if the SBA is a good fit for you.
7 (a) Loan Program
The SBA 7(a) loan program offers several benefits for small businesses seeking financing, particularly for those purchasing or using commercial real estate as collateral or for other business purposes. SBA 7(a) loans may not grab attention like venture capital or private equity, but for entrepreneurs aiming to grow while retaining control, they’re a powerful option. Offered by banks, credit unions, and nonbank lenders, these loans are backed by a SBA guarantee, encouraging lenders to approve more applications. This benefits both the lender and the business owner.
Originating in 1953, the program has proven its value over decades. The average 7(a) loan is about $416,000, though funding can reach up to $5 million. Use it for purchasing property, scaling operations, or refinancing debt—virtually any valid business need can be covered.
SBA 7(a) Funds usage
Benefits of working with our lender
- Covering working capital so you can breathe a little easier month to month
- Upgrading or buying new equipment that keeps your operation sharp
- Buying or improving commercial property for long-term expansion
- Acquiring another business or merging with a competitor
- Stocking up on inventory before a peak season hits
- Refinancing old, expensive debt to improve your margins
- Buying out a partner or restructuring ownership under certain conditions
- Low down payment requirements. From 10% standard down to 0% under certain circumstances.
- LTV requirements are secondary to cash flow. Greater than 100% possible.
- Story Lending. Past credit or personal history hiccups considered with proper explanation.
- Startup financing based on projections and a strong business plan.