SBA 7(a) Loans

Government Small Business Loans

Government Backed: Start-up Funding | Acquisition | Partner Buyout | Expansion | Real Estate


SBA 7(a) Loans

Government Small Business Loans


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Government Backed: Start-up Funding | Acquisition | Partner Buyout | Expansion | Real Estate


SBA Loan Requirements


You can use 7(a) loans for working capital, business acquisition, partner buyouts, expansion and startup businesses.

The SBA, who grantees the loan and the Bank who actually lends you the money both have their own criteria for qualification.  It is important to understand which rules are set in stone and which requirements have some flexibility depending on the individual borrower and business industry.

7(a) Terms

  • Interest Rate WSJ Prime + 2.75%
  • Up to a 10 year term
  • Up to a 25 years for real estate

Loan Amounts

  • $50,000 up to $5 million

SBA Fees

  • SBA Guarantee fee, varies based on the loan amount

Requirements

  • Some Collateral is usually required
  • A personal guarantee of the loan
  • Credit Score of 685 of higher
  • US Citizen or Permanent Resident

Speak with an expert about SBA Financing

SBA Loan FAQ

What’s the difference between an SBA loan and a conventional business loan?


A conventional business loan from is solely the bank’s risk and subject to Bank lending guidelines. An SBA loan is a business loan that splits the risk between the Bank and the SBA, which guarantees a portion of those loans. SBA loans are subject to the lending guidelines of both the SBA and the Lender.

    Is an SBA loan from one bank the same as from another bank?


    No. An SBA loan must be approved by the issuing bank, and each bank has its own lending criteria. Key Commercial Capital works to identify which bank is most likely to fund your type of business and work with a clients individual case.

      What automatically disqualifies someone from an SBA loan?


      SBA loans are subject to SBA lending guidelines. Reasons you can not get an SBA loan include: Not a US Citizen or permanent resident, defaulting on a past government loan, recent bankruptcies or poor credit. Even if you’re not sure you can qualify, we still encourage you to speak with a Key Commercial Capital advisor as we have creative solutions to your funding needs.

        Is an SBA loan only for an existing business?


        No. SBA loans are also for startup businesses. Additionally, SBA loans can be used for Acquisitions, Commercial Real Estate, Partner Buyouts, Expansion, Loan Refinancing or Working Capital.

          Is a personal guarantee required for an SBA loan?


          Yes, although SBA loans are business loans you must sign a personal guarantee to repay the loan.

            Will an SBA loan show on my personal credit report?


            In most cases, No. However, if you default on a loan, it will impact your credit.

              Speak with an expert about SBA Financing