SBA (7a) Loan Guarantee Program


Administered through the U.S. Small Business Administration, this is the SBA’s primary loan program. The SBA reduces risk to lenders by guaranteeing major portions of loans made to small businesses.


Eligibility and credit requirements are very broad in order to accommodate a wide range of financing needs.

Borrower still initiates loan with lender and upon lender review, decides if application merits loan on its own or if it requires support of SBA. Lender then requests backing of SBA.

Amounts & Interest Rates

Loan amounts generally run from a minimum of $50,000 to a maximum of $1,000,000. Paybacks on loan are from 5 to 25 years. Interest ranges from Prime Plus 2.25% to 2.75%. Rates on loans under $50,000 may be higher. Funds may be used for expansion, renovation, construction, land purchase, equipment, working capital and inventory. Loans under $50,000 may be subject to higher equity and interest charges.