Understanding the SBA 7(a) Loan!


If you are currently looking to start or expand your business venture and you don’t have qualify for any conventional means of finance, then the SBA 7(a) loan is the right option for you today.  It is a primary loan program that has been backed by the U.S. Small Business Administration, and is a flexible and long-term financing option that is highly beneficial for startup or expanding organizations.

You will be able to purchase around $5 million for all of your business needs, which will include everything, from working capital to real estate. The SBA offers loans to businesses but only after certain requirements are met by the business. The main factors of eligibility under the SBA 7(a) loan include:

  • How a business generate its income
  • Where the business operates
  • The character of the ownership

The SBA 7(a) is highly beneficial for businesses that need capital to start and build their foundation. The SBA 7(a) loan can’t be used to purchase an asset and then hold it in order to gain from increased value of the asset and it can also not be used to reimburse the owner for any money that they have invested into the business.

Key Features of the SBA 7(a) loan:

The SBA 7(a) loan is generally used to encourage small businesses to seek long-term financing loans, which will allow their organizations to develop into bigger corporations and therefore reflect positively on the economy of the entire country. The best part about this loan is the fact that you gain a flexible credit structure with no strings attached and there is broad eligibility for every business.

Here are some of the key features of the SBA 7(a) loan:

  • Long-term financing
  • Higher loan to value
  • Financing of $5 million
  • Competitive pricing
  • Flexible use of proceeds

Benefits of the SBA 7(a) loan:

Anyone who is struggling to get their head above water in a startup organization can hugely benefit from the SBA 7(a) loan. It is designed to help start up businesses to stand on their own feet and lay down strong foundations for a brighter future. It can be extremely hard to finance a new or growing business, and this is exactly where you can gain the imitative with your competitors in any industry.

Here are some of the unique benefits that small businesses gain today with the SBA 7(a) loan:

  • Alternate source of financing when you need it the most
  • Enjoy long-term financing for all of your business needs
  • Structure the SBA 7(A) loan to fit your organizations cash flow

The SBA 7(a) loan program is something that can make a huge difference for growing and startup organizations. It is also a source of encouragement for entrepreneurs who want to open their own business venture but don’t necessarily have the funds to make it all happen.

We can help you take advantage of the SBA 7(a) loan program and ensure that you can gain the upper hand with our experience, expertise and consulting techniques.