SBA 7(a) Program

The 7(a) loan is SBA’s primary loan program. The program provides financing to entrepreneurs just starting out or businesses that are expanding with long term financing. The loan program offers a 75-85% guaranty from the SBA for loans up to $2.0 million.

Benefits to Lenders:

Lower your Risk

SBA guaranty is currently 90% under the recent stimulus package
Generally the guaranty is 75% - 85% on 7(a) loans

Grow your Portfolio

Expand existing relationships
Add new clients with broader lending ability
Finance start-up businesses

Increase your Competitive Edge

Provide your business clients up to 90% project financing
sbaSTRATEGIES can assist with the processes from approval to servicing the loan.
sbaSTRATEGIES has SBA experts that can quickly answer SBA related questions for you and the borrower. 

Advantages to the Participating Lender:

Attractive terms to customers with a low equity requirements
As a lender, you capture all deposit relationships, which means your relationship will grow as borrowers grow in their businesses
Many SBA 7(a) loans meet Community Reinvestment Act (CRA) compliance requirements.

Rates:

Lenders can charge up to 4.75% above the current Wall Street Journal prime or LIBOR, depending upon size and maturity.

Terms:

7 yrs – Working Capital
10 yrs. – Machinery & Equipment
25 yrs. – Real Estate