SBA 7(a) rates are based on the prime rate plus a margin (1.5–2.75%). Rates can be fixed or variable depending on the lender and loan amount.

SBA 7(a)

SBA 7(a) Loans

Q: What is the guarantee fee?

The SBA charges a guarantee fee of 0–3.75% depending on loan amount. This is a one-time fee that can be financed into the loan.

Q: What collateral is required?

Loans under $500K may not require specific collateral. Above that, the SBA requires the lender to collateralize the loan with available business and personal assets, though lack of collateral alone is not grounds for denial.

The most versatile SBA program — up to $5M for working capital, equipment, real estate, and business acquisition.

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Overview

The SBA 7(a) loan is the flagship program of the Small Business Administration. It provides up to $5 million in flexible financing for nearly any legitimate business purpose — from working capital and equipment to commercial real estate purchase and business acquisition. The SBA guarantees a portion of the loan, which allows lenders to offer lower down payments (10–20%), longer terms (7–25 years), and more flexible credit requirements than conventional commercial loans.

Who Is This For?

Businesses acquiring commercial real estate
Entrepreneurs buying existing businesses
Companies needing working capital or equipment
Business owners refinancing existing debt

Initial Review

We assess your business plan, financials, and loan purpose.

Application

Prepare and submit your complete SBA application package.

Underwriting

SBA and lender review — typically 30–60 days.

Closing & Funding

Final approval, closing documentation, and disbursement.

What can I use a 7(a) loan for?

Almost any legitimate business purpose: real estate, equipment, working capital, inventory, business acquisition, partner buyout, debt refinancing, and more.

What are the rates?

What is the guarantee fee?

What collateral is required?