SBA 7(a) Guaranteed Loan

The program operates through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA (up to 85% of loan) -- the Agency has no funds for direct lending or grants. A maximum loan amount of $5 million has been established. However, the maximum guaranty is generally $13.75 million. Use of proceeds: purchase of real estate, construction, renovation or leasehold improvements, acquisition of furniture, fixtures, machinery and equipment; purchase of inventory and working capital.

Term
Fees
Interest
Twenty-five (25) years for real estate and equipment; and, generally seven (7) years for working capital.
$0 to $150,000 loan: 2% of guaranty.$150,001 to $700,000 3% of guaranty. $700,000 to $1,00,000 3.5% of guaranty. $1,000,000 plus additional 0.25 %
$50,000 plus loan - maximum prime plus 2.25% (2.75% if 7 plus years). $25 to $50,000 - maximum prime plus 3.25% (3.75% if 7 plus years). $0 to $25,000 - maximum. prime plus 4.25% (4.75 if 7 plus years).


Interest Type

Interest Type
Amount $
Eligibility/Requirements
Fixed / variable
Maximum Loan $5,000,000
Determined by four factors:
  • Type of Business
  • Size of business
  • Use of Loan Proceeds
  • Special Circumstances