SBA’s most common loan program, the 7A loan program, includes financial assistance for small businesses with special needs. This is the best choice when real estate is part of your business purchase, but it can also be used if:
- short-term working capital
- Current business debt refinancing
- Buy furniture, accessories and supplies
7A The maximum amount of the loan is five million dollars. Key eligibility factors are based on what your business does to earn income, your credit history, and where your business operates. Your lender will help you decide which type of loan best suits your needs.
Am I eligible?
In order to be eligible for 7A loan assistance, an entity must:
- operate for profit
- It is considered a small business as defined by the SBA.
- engaging in or offering to do business in the United States or its territories;
- have reasonable investment capital
- Use alternative financial resources, including personal assets, before applying for financial aid.
- Can prove the need for a loan
- Use your funds for sound business purposes
- You must not be in arrears or in arrears with your existing debt obligations to the U.S. Government.
Learn more about our terms and conditions and eligibility (English only).
7A How do I use the loan?
The primary purposes of a SBA 7A Loans are:
- short-term working capital
- Revolving funds based on inventory value and existing accounts receivable
- Purchase of equipment, machinery, furniture, accessories, supplies or materials
- Purchasing real estate, including land and buildings
- Assisting in the establishment of a new business or the acquisition, operation or expansion of an existing business
- Refinancing of existing commercial debt under certain conditions
What should I apply for?
When you are ready to apply, you need to collect the appropriate documentation for your application. Follow SBA guidelines and work with your local lender to start the process. Use the checklist below to make sure you have everything your lender requires. Once your financing proposal package is complete, your lender will submit it to SBA:
- Borrower Information Form – Complete and submit SBA 504 Loans Form 1919 to participating lenders in the SBA program.
- Financial Statements and History: Complete SBA Forms 912 (Personal Historical Statements) and 413 (Personal Financial Statements). These help agencies and other interested parties determine your eligibility.
- Business Financial Statements – Submit the following to demonstrate your ability to repay the loan.
- Profit and Loss Statement– (valid for 180 days from the date of your application). Supplementary schedules for the last three fiscal years are also included. Projected financial statements (include a detailed annual revenue and financial forecast and explain how you hope to achieve it.
- Ownership and Affiliations: Provide a list of names and addresses of affiliates and branches, including companies in which you have a controlling interest or are otherwise related to you.
- Business license or certificate: Provide a copy of the original business license or business activity certificate. If your small business is a corporation, put your corporate seal on the SBA loan application form.
- Loan Application History – Contains a history of previously applied loans.
- Tax returns: Include federal personal and business tax returns signed by your business director for the past three years.
- Resume: Include each commercial director’s personal resume (or English resume).
- Business Overview and History: Provide a history and challenges for your business, including a description of why you need an SBA loan and how it will help your business.
- Commercial Lease – Include a copy of the commercial lease or note from the property owner stating the terms of the proposed lease.
If you are purchasing an existing business, please collect the following information:
- returning of federal taxes for the past three years
- Proposed sales contract with terms and conditions of saleAnnex sale price of inventory, machinery, equipment, furniture and accessories
- Franchise, Brokerage or License Agreement
- proof of capital injection depending on the specific use of the funding offer package or the funds or fees paid to the broker or agent, you may be required to submit additional SBA forms.
7A How do I repay the loan?
Loan repayment terms depend on several factors. Most 7A loans repay the principal and interest in monthly installments.
A fixed rate loan has a constant interest rate, so your payment will remain the same.
For floating rate loans, lenders may require different payment amounts when interest rates change.
