The Small Business Administration (SBA) is the preferred method for entrepreneurs to finance new business purchases and to expand upon existing businesses. In particular, the SBA 7(a) program is specifically designed for this purpose.
What exactly is the SBA 7(a) loan program?
The SBA 7(a) loan program is the primary method by which the Small Business Administration provides financial assistance to small businesses. Some of the key 7(a) loan program parameters are as follows:
Maximum loan amount: $5 million;
Maximum SBA loan guarantee: 85% on loan amounts up to $150,000; 75% on loans amounts above $150,000;
Interest rate: although the borrower and the lender can negotiate the interest rate, such rate may not exceed the SBA limit; and
Loans up to $25,000 require no collateral. However, applicants seeking a loan above $350,000 must provide collateral on the loan to the greatest extent possible. This very often includes pledging personally-owned real estate as collateral.
The 7(a) loan is a helpful, though often a complicated, loan process. It involves a careful presentation of your application to lenders. By and large, lenders who fund SBA 7(a) loan programs assert a great deal of discretion in deciding which loans they will ultimately issue.
Contact us today to discuss how we can assist you in your interest in obtaining an SBA 7(a) loan for your new or existing business.
DW Capital Advisors, LLC, based in Boston, Massachusetts, serves clients across the great nation of America. Our mission is to help individuals and small to medium sized businesses access all the benefits offered by U.S. Small Business Administration capital lending programs. If you are looking to start, acquire or expand a business, then consider the capital sources available through the SBA programs. Versed in the SBA lending requirements and guidelines, and with our access to a network of banks and advisors, DW Capital Advisors prides itself on securing capital for its clients faster, more efficiently and better terms than anyone in the industry.