SBA 7(a) Loan Print Share
SBA 7(a) Business Loan GuaranteeCredit-worthy small businesses unable to obtain financing for fixed assets or working capital from private lenders can seek a 7(a) business loan guarantee. With this financing, commercial loans of up to $150,000 are guaranteed by the SBA at 90 percent; loans exceeding $150,000 are guaranteed at 85 percent. For larger loans, the SBA will guarantee 75 percent up to a maximum of a $750,000 loan. Loans for fixed-asset acquisition have a maximum guaranteed maturity of 25 years; loans for general-purpose working capital needs are covered for 7 years. The interest rate generally is not more than 2.75 percentage points above the prime lending rate. In essence, the SBA's 7(a) Loan Program aims to help meet the financing needs of credit-worthy small businesses that are having difficulties in dealing with commercial lenders. More Information |