Receive the funding you need to launch your small business or take the next step in business ownership. Learn how the Small Business Association (SBA) 7(a) program can help you with a diverse range of financial needs. Explore SBA 7(a) requirements today.
What Is the SBA 7(a) Loan Program?
The 7(a) guaranteed loan program is the SBA’s primary lending program. The borrower applies to a lending institution, not the SBA. The lender applies to the SBA for a loan guarantee. Under the 7(a) guaranteed loan program SBA typically guarantees from 50% to 85% of an eligible bank loan.
The SBA can process the lender’s request through a variety of methods. Guarantees are up to $4,500,000 of each loan made by participant lenders. These loans typically range from $25,000 to $5 million and are repaid in monthly installments.
They can be used for a variety of business purposes including working capital, equipment acquisition, debt refinancing, change of ownership, and real estate purchases. Maturities depend on the use of loan proceeds but typically range from five to 25 years.
What Are SBA 7(a) Loan Requirements?
Now that you know what an SBA 7(a) loan program is, consider applying for one for your business. You may qualify if you meet the following requirements:
- Operate for profit
- Meet the SBA definition of small business (size limits vary by specific industry NAICS code)
- Transact business in the U.S. or any of its territories
- Can demonstrate a need for a loan
- Have a reasonable invested equity
- Use the funding for a good business reason
- Don’t have debt obligations to the U.S. government
How Hard Is It to Get an SBA 7(a) Loan?
Although SBA 7(a) loans can be hard to qualify for and the application process can be difficult for most borrowers, our team of experts can help your small business get funding via this excellent program. Rafael Marrero & Company can support your launch efforts to become a strategic supplier of goods and services with the world’s richest customer: The U.S. Federal Government.
Our team of professionals can also help you determine which market segment or supply chain areas are the most appropriate choices for your business. In addition, we offer specialized SBA business plan development support services and personalized loan packaging assistance in these programs, so you can get access to capital to meet your business needs while working with us on your federal contracting goals.
How Can Rafael Marrero & Company Help?
Rafael Marrero & Company’s B2G professionals are well versed in advanced marketing services aimed at the federal level and can discuss future growth and capacity planning. We understand how hard it is to get an SBA 7(a) loan, so request a consultation today to see how we can assist you in navigating the loan application process.