Quick answer: The SBA 7(a) loan is the most common SBA program: up to $5 million from a bank or SBA-approved lender, partially guaranteed by the SBA, and usable for working capital, equipment, real estate, or buying a business.
What Is an SBA 7(a) Loan?
The 7(a) loan is the SBA’s most common loan program. A bank or other SBA-approved lender makes the loan, and the SBA guarantees a large share of it, which lets lenders approve businesses they might otherwise decline. Loan amounts go up to $5 million.What You Can Use a 7(a) Loan For
- Working capital and day-to-day operating expenses
- Equipment and machinery purchases
- Commercial real estate purchase or renovation
- Buying an existing business or franchise
- Refinancing existing business debt
- Inventory and supplies
Typical Terms
$5Mmaximum loan amount
10 / 25 yrsrepayment: working capital / real estate
85%SBA guarantee on loans up to $150k (75% above)
- Amount: up to $5 million
- Repayment: up to 10 years for working capital and equipment; up to 25 years for real estate
- Rates: set by the lender within SBA maximums, typically tied to the prime rate
- SBA guarantee: up to 85% for loans of $150,000 or less, and 75% for larger loans
Who Qualifies
- For-profit business operating in the U.S.
- Meets SBA size standards for its industry.
- Ability to repay the loan from cash flow.
- Owner investment – your own time or money in the business.
- Credit around 650+ – what most lenders look for.
- Two or more years in business helps, though startups can qualify with a strong package.
How the Process Works
- Tell us about your business and funding goals in one short form.
- We match you with an independent SBA loan advisor.
- Your advisor reviews your financials and helps you build a lender-ready application.
- The lender underwrites the loan and, if approved, closes and funds it.
How Fast SBA Helps
Fast SBA is not a lender. We connect you with an independent SBA loan advisor who knows 7(a) lending and your industry. Getting pre-qualified is free.Related reading
Sources: U.S. Small Business Administration, sba.gov – 7(a) loan program terms and guidelines.Frequently Asked Questions
What is the maximum SBA 7(a) loan amount?
$5 million. The SBA guarantees up to 85% of loans of $150,000 or less, and 75% of larger loans.
How long does an SBA 7(a) loan take?
From application to funding, a typical 7(a) loan takes about 60 to 90 days. Approval itself often comes within a few weeks when the application package is complete.
Can I use a 7(a) loan to buy a business?
Yes. Buying an existing business or franchise is one of the most common 7(a) uses. Lenders typically want at least 10% down and relevant management experience.