SBA 7(a) Loan

The SBA 7(a) loan is the SBA's most flexible and widely used loan program, usable for real estate purchases, business acquisitions, equipment, working capital, or debt refinancing, backed by a partial government guaranty (typically 75–85%) that reduces lender risk. Unlike the SBA 504 program, 7(a) is a single loan from one lender, up to $5 million, with real estate terms up to 25 years.

SBA 7(a) is the SBA's general-purpose flagship loan program, distinguished from 504 by its flexibility: proceeds can be used for nearly any legitimate business purpose — real estate, equipment, inventory, working capital, partner buyouts, or refinancing existing debt — and it's issued as a single loan by one SBA-approved lender rather than the two-loan 504 structure.

The government guaranty (up to 85% on loans of $150,000 or less, 75% on larger loans) is what makes 7(a) accessible to businesses that might not otherwise qualify for conventional financing, since it substantially reduces the lender's loss exposure and allows for lower down payments and longer terms than conventional loans typically offer.

Real estate financed through 7(a) generally amortizes over up to 25 years, and like 504, requires the business to occupy at least 51% of an existing property, keeping the program focused on owner-occupied use rather than investment real estate.

Get matched to lenders · Analyze a deal with these numbers · Find matching lenders