Power Fast Access to Capital with a SBA 7A Loan
Need to infuse your business with an influx of capital without pursuing a restrictive conventional bank loan? For many small businesses, an SBA 7A loan delivers an ideal corporate funding solution. Long-term, low-rate, and government approved, the SBA 7A program offers qualified borrowers favorable provisions in today’s highly competitive lending marketplace. Whether still considered a startup or looking to maintain your established brand reputation, SBA 7A funding can provide accelerated access to cash flow and keep your enterprises thriving.
The 7A Loan: What You Need to Know
To qualify for SBA 7A lending, a business must meet several loan standards, including:
- Considered small in industry
- Operate for profit
- Have designated equity to invest (minimally 10%)
Borrowers applying for this loan model must also conduct (or propose to conduct) business in the U.S. or its possessions. Additionally, business owners must also have tried to leverage other financial resources, including personal assets, to meet the eligibility requirements for an SBA 7A loan.
Does Your Business Qualify For This Flexible Lending Option?
Businesses that do meet lending requirements can use their SBA 7A financing (up to $5 million total) for a myriad of capital expenses and investments including:
- Fund startup costs
- Purchase or grow existing operations
- Repair existing assets
- Buy new land (including construction expenses)
- Refinance current debt
- Invest in capital equipment such as machinery, supplies, materials, furniture, etc.
Understanding The Benefits Of A 7A Financing Solution
SBA 7A business loans provide a full suite of benefits to entrepreneurs across every industry. This lending model offers:
An SBA 7A typically runs from 5-25 years. The loan term is typically determined by what funding was used for:
- Working capital: 5-7 year term
- Business acquisition or capital equipment financing: up to 10 years
- Real estate: up to 25 years
Lower Down Payment
Finally, the SBA 7A program generally covers up to 90% of your total project expenses, requiring a lower down payment to launch your initiative compared to other financing options. You’ll receive fast access to capital (usually 5-10 days) to grow your business without stretching your existing resources too thin