SBA 7(a) Loan Program
The 7A Loan Program is the most common SBA loan program.
If you want to start a new business or expand your existing small business, a 7(a) loan might be a great, flexible option for you.
A local business will take out 7(a) loans for a number of uses such as:
- Acquiring an existing business
- Refinancing existing debt (under some circumstances)
- Purchase equipment
- Short and long-term capital needs
- Construction or renovation projects
When applying for an SBA 7(a) loan, you can borrow up to $5 million in capital to use for any of these reasons or other eligible business purposes.
Aside from the flexibility of the 7(a) loan, the other great part about an SBA 7(a) loan is that the interest rates and fees are much lower compared to other business financing options. The SBA sets the fees and maximum interest rates that lenders can charge.
Although these fees and rates change from time to time, they are kept at competitive market levels to encourage small business owners to borrow money and invest in their companies. Current rates for an SBA 7A Loan range from 7% to 9.5%.
Who is not eligible for an SBA loan?
Non-profit businesses aren’t eligible for SBA loans, and these industries are barred from receiving an SBA loan:
- Most passive income businesses
- Speculative businesses (Developer, Medical research)
- Businesses primarily engaged in lending
- Businesses primarily engaged in political or lobbying efforts
- Life insurance companies
- Businesses making most of its revenue from gambling activities
Commercial Mortgage Unlimited has specialized in funding SBA loans for clients for years and can help you find the best loan program that suits your needs. Please email me your loan request and I will walk you through the process.