SBA 7(a) Loan Program

Category: finance

The flagship small business loan program backed by the U.S. Small Business Administration.

The SBA does not lend money directly. Instead, it provides a federal guarantee of up to 85% of the loan amount to private commercial banks. This insurance lowers the bank's risk profile, enabling lower interest rates, longer repayment terms, and lower down payments for small businesses.

Common Examples

• The restaurant group leveraged an SBA 7(a) loan to acquire their second franchise location and secure long-term working capital resources.
• Navigating the document requirements for an SBA 7(a) loan typically adds thirty to sixty days to the commercial funding timeline.