Knowing the steps to get a business loan can help reduce frustration and increase your chances of approval.
A business loan can help you start or grow your company, but navigating the process and lending standards can be intimidating if you don’t know how to get a business loan.
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What is 7(a) Small Business Loan?
7 (a) Loans are the most basic and commonly used type of loan in Small Business Administration (SBA) lending programs. The title comes from section 7 (a) of the Small Business Act, which authorizes the agency to provide business loans to small businesses in America. The loan program is designed to help profitable companies that cannot obtain other financings from other sources.
Who is eligible for 7(a) Small Business Loan?
The SBA lends to companies – not individuals – the qualification requirements are therefore based on aspects of the company, not the owners. All companies considered for financing under the SBA 7 credit program must: (a) meet the standards applicable to the SBA, be profitable, no longer have the internal resources (commercial or personal) to provide financing, and must be able to prove payment. Some variants of the SBAs 7 (a) credit program may also require additional qualification requirements. Special target programs recognize additional behavior.
For more eligibility Requirements details visit 7(a) Loan Program Eligibility page.
What are the loan terms for 7(a) Small Business Loan?
The maximum length of the loan is 25 years for real estate and seven years for working capital. The maximum loan amount is $2 million.
For more information, please visit 7(a) Loan Amounts, Fees, and Interest Rates page.
| Max Loan Length | 25 years for real estate, 7 years for working capital |
|---|---|
| Interest Rate | Subject to SBA maximums, tied to the Prime Rate |
| Max Loan Amount | $2 million |
| Payment Frequency | Varies |
| Prepayment Penalties | Varies |
| Max Loan Length | Yes |
How to Apply For 7(a) Small Business Loan?
To apply, start with the 7(a) Loan Application Checklist page.
How can I contact someone?
For more information about this program, please visit the General Small Business Loans: 7(a) page.
To find an SBA lender, please visit the SBA Linc tool.
Call 1-800-659-2955