SBA 7(a) Small Business Loan

SBA 7(a) Small Business Loan

The 7(a) Loan is SBA’s most basic and commonly used type of loan. They help start-up and existing small businesses with financing for an array of general business purposes such as working capital, machinery and equipment, furniture and fixtures, land and building, leasehold improvements and debt refinancing.

SBA 7(a) Eligible Applicants’ Businesses Must:

Program Eligibility

  • Applicant operates as a for profit business
  • Be small, as defined by Small Business Administration
  • Operates in the United States
  • Have reasonable invested equity
  • Be able to demonstrate a need for the loan proceeds
  • Use the funds for a sound business purpose
  • Not be delinquent on any existing debts to the U.S. Government

SBA 7(a) Ineligible Businesses

  • Financial businesses
  • Life insurance companies
  • Businesses located in a foreign country
  • Businesses deriving more than one-third of its revenue from legal gambling activities
  • Private clubs and businesses that limit membership for reasons other than capacity
  • Businesses principally engaged in teaching religion or in political or lobbying activities
  • Consumer and marketing cooperatives (producer cooperatives are eligible)

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Basic Uses for 7(a)

  • Purchase real estate or equipment
  • Construction of expansion of a building
  • Refinance existing business debt
  • Business acquisition
  • Provide working capital