The 7(a) loan program is available to meet a variety of business financing needs.
The 7(a) loan program’s use of proceeds:
• Provides funds for:
– Tenant improvements
– Business acquisition
– Working capital
– Equipment or machinery purchase
– Debt refinancing
– Commercial real estate purchase
• Offers financing up to $5 million.
• Extends a term for working capital up to 7 years; equipment, machinery and business acquisition up to 10 years; debt refinancing terms depend on the use of proceeds; and commercial real estate up to 25 years.
All businesses that are considered for financing under the SBA 7(a) program must be eligible under the following guidelines:
• Conduct business for profit.
• Have no other resources to provide the financing.
• Be able to demonstrate repayment from the business’s cash flow.
• Exhibit business management capability.
• Provides financing for projects up to $13.75 million for the acquisition of owner-occupied commercial real estate.
• Secures the loan with multiple fixed rate and amortization options.
• Can also be used for major, long-term equipment purchases.
The 504 real estate program was developed to help small business owners buy or refinance commercial real estate for their own operations. To be eligible, the business must:
• Occupy 51% or more of the space of an existing facility to be purchased; or 60% or more of the space in a new facility being constructed.
• Be an existing, for-profit business.
• Have a net worth of less than $15 million.
• Have an average profit for 2 years combined of $5M or less.
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