What is the maximum SBA 7(a) loan amount for an established business?
Up to $5 million. The SBA guarantees a portion; your lender funds the full amount and services the loan.
How long does an SBA 7(a) loan take to fund?
Many close in 30–60 days, depending on complexity, third-party reports, and document readiness. Complex real estate or acquisitions can extend to 60–90 days.
Do I need a personal guarantee for an SBA loan?
Yes, most 7(a) loans require personal guarantees from owners with 20% or more ownership. This is a standard SBA requirement.
What are typical SBA 7(a) interest rates and terms?
Rates are commonly variable (Prime plus a spread) within SBA caps. Terms are up to 10 years for most uses and up to 25 years for qualified owner-occupied real estate.
What are the main SBA loan requirements?
For-profit U.S. business, SBA size standard compliance, eligible use of proceeds, ability to repay from cash flow, and required documentation (financials, tax returns, SBA forms). Lenders may have additional criteria.
Can I use an SBA 7(a) loan to buy a business?
Yes. Many lenders look for 10–20% equity injection for acquisitions, and a seller note can help structure the deal. Strong historical cash flow is key.
What if my business has short-term high-cost debt?
SBA 7(a) can refinance eligible business debt if it improves cash flow and meets SBA rules. Lenders will assess the repayment benefit and eligibility.
