SBA 7(a) Loans - Enbright Credit Union

SBA’s 7(a) Loans

What is a 7(a) loan?

The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for: 

  • Short- and long-term working capital 
  • Refinance current business debt 
  • Purchase furniture, fixtures, and supplies 

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs. 

Am I eligible?

To be eligible 7(a) loan assistance, businesses must:

  • Operate for profit 
  • Be considered a small business, as defined by the SBA 
  • Be engaged in, or propose to do business in, the United States or its possessions 
  • Have reasonable invested equity 
  • Use alternative financial resources, including personal assets, before seeking financial assistance 
  • Be able to demonstrate a need for a loan 
  • Use the funds for a sound business purpose 
  • Not be delinquent on any existing debt obligations to the U.S. government 

Some businesses may not qualify for a 7(a) loan. Read more about what the SBA considers an ineligible business.

What do I need to apply?

Basic uses for the 7(a) loan include: 

  • Long- and short-term working capital 
  • Revolving funds based on the value of existing inventory and receivables 
  • The purchase of equipment, machinery, furniture, fixtures, supplies, or materials 
  • The purchase of real estate, including land and buildings 
  • The construction a new building or renovation an existing building 
  • Establishing a new business or assisting in the acquisition, operation or expansion of an existing business 
  • Refinancing existing business debt, under certain conditions
How do I pay back my 7(a) loan?

Loan repayment terms vary according to several factors: 

Repayment terms 

  • Most 7(a) term loans are repaid with monthly payments of principal and interest. 
  • Payments stay the same for fixed-rate loans because the interest rate is constant 
  • For variable rate loans, the lender can require a different payment amount when the interest rate changes 

Interest rates 

3 Acceptable Base Rates: 


Maximum Allowable Spread: 

  • Maturity < 7 years = 2.25% 
  • Maturity > 7 years = 2.75% 

Percent of Guaranty 

SBA can guarantee up to: 

  • 85% of a loan up to $150,000 
  • 75% of a loan greater than $150,000 
Existing borrowers

Existing borrowers can create an account in the SBA Capital Access Financial System (or CAFS) to monitor their loan status. Get account enrollment instructions.

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