SBA 7A Loan Program
The SBA 7(a) loan program provides small businesses access to funds if they are struggling to secure funding through traditional lending sources. We at Mid-Atlantic Commercial Capital, LLC have partnerships with a network of reputed lenders to offer you the Small Business Administration (SBA) 7(a) Loan Guarantee program. With years of experience in the industry, we can guide you through each step to help secure financing.
Why is SBA 7(a) Loan Program Popular?
Most small business owners apply for the SBA 7(a) Loan program because it is one of the most basic types of SBA loan programs. The loans are provided through SBA-approved private lenders, mostly banks. The SBA guarantees up to 85% of these funds. There are different types of loans under the program and we can guide you to make the right choice after assessing your business. This is the primary loan program supported by the SBA to provide guaranteed loans to small businesses.
Standard 7(a) loans provide up to $5 million in loans for a period ranging from 10 years to 25 years. Fixed assets such as equipment can be financed for up to 10 years and assets like real estate for up to 25 years. The interest rates start from 2.25%.
Small Business Eligibility Conditions
Small businesses must meet certain requirements to be eligible to apply for SBA 7(a) loans:
- Must be registered as a for-profit business
- Must be operating legally
- Must full under the category of SBA-eligible industry
- Must have less than 500 employees
- Must not have $7.50 million or more annual average revenue for the past 3 years
- The Business owner must not be on parole
- Business owner’s net worth should be less than $15 million
- Business owner’s net income should be less than $5 million
- Business must be located within the country
- Business must engage with other businesses within the country
- Must demonstrate investment of own time and funds in the business
A small business applying for an SBA 7(a) loan must demonstrate pre-application for other loans or finances and having failed to secure them from other lenders. It must be demonstrable that non-SBA loan options have been fully exhausted. In addition, it must be proven that the loan funds will be used for sound business purposes. The intended fund purpose must be SBA approved. The business owner must also demonstrate that they are not delinquent on any existing debt with the government. This includes debts like student loans and taxes.
Applying for SBA 7(a) Loan
Now that you know about the eligibility requirements for the SBA 7(a) loan program, we at Mid-Atlantic Commercial Capital, LLC can assist you with your application. We are a trusted and experienced commercial financing firm that assists in securing different types of small business loans including SBA 7(a) loans.
As simple as the SBA 7(a) loan program may seem, there are specific requirements for each industry. We can guide and assess your business to make the right decisions when applying for the loan. If you seek to finance projects for your business and are finding it difficult to secure a loan elsewhere, feel free to contact us. Give us a call today at (540) 825-9800 or write to us at email@example.com for more information.