SBA 7a Loans

This blog is primarily about the SBA 504, but there is another SBA loan program that needs to be discussed – the SBA 7a loan.

At the moment, 7a loans are MUCH easier to qualify for than 504 loans and they are more flexible than the 504.

SBA 7a loans can be used for “any legitimate business purpose” including:

• real estate purchase
• refinance
• working capital
• business debt consolidation
• equipment
• renovation
• inventory

AND they are available up to 85 or 90% loan to value for most businesses and even 100% loan to value for some businesses.

7a loans are currently limited to $2 million, but they may soon be available for loans as high as $5 million and unlike 504 loans, there is a healthy secondary market for 7a’s.  (The secondary market is where banks sell their loans which gives them the ability to recoup their capital and make more loans).

So if you have a healthy small or mid-sized business and you need a commercial loan to refinance your current loan, consolidate business debt, for working capital or another legitimate business purpose then you should take a look at the SBA 7a.