SBA 7(a) Loan

SBA 7(a) loans are made by SBA-approved banks, credit unions, and non-bank lenders. The SBA itself doesn't lend directly — it guarantees a portion of the loan to reduce lender risk, which expands credit access to small businesses that wouldn't otherwise qualify for conventional financing.

Loan structure: terms up to 25 years on real estate, 10 years on equipment, 10 years on working capital. APRs are prime + a margin set by the lender (typically prime + 2.25-4.75%, depending on loan size and credit profile). Per-loan max is $5 million.

Effective July 4, 2026 (per SBA announcement 2026-05-18), the cumulative 7(a) + 504 cap doubles from $5M to $10M, with the two programs decoupled — a borrower can use $5M of 7(a) AND $5M of 504 independently.

Typical borrower: 2+ years in business, 680+ FICO, demonstrated cash flow with DSCR of 1.15+, owner-occupied real estate or equipment as collateral preferred. Underwriting and closing typically take 45-120 days.

The SBA's official 7(a) program page (https://www.sba.gov/funding-programs/loans/7a-loans) documents eligibility, loan limits, and approved lender lists. Lender underwriting requirements are governed by the SBA SOP 50 10 (https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs). The Federal Reserve's Small Business Credit Survey (https://www.fedsmallbusiness.org/reports/survey/2026/2026-report-on-employer-firms) tracks how SBA loan access compares with other small business financing channels.