SBA 7(a) loans are government-backed loans provided through approved lenders. The SBA guarantees up to 85% of the loan amount, which reduces risk for lenders and allows them to offer favorable terms to small businesses.

How It Works:

  • The SBA 7(a) loan is primarily used for large business needs, such as working capital, equipment, or real estate.
  • It offers long repayment terms (10 or 25 years) and lower interest rates compared to traditional loans.

Eligibility Criteria for SBA 7(a):

  • Business Size: Less than 500 employees and less than $7.5 million in average annual revenue over the past 3 years.
  • Credit Score: Owners with 20% or more ownership must have a credit score of 700 or higher (higher for startups).
  • Business Type: The business must be for-profit and in an SBA-eligible industry.
  • Financial Health: Must demonstrate repayment ability (positive cash flow, low debt).
  • Time in Operation: Must have been operating for a minimum of two years.

Documents Required for SBA Submission:

  • Business Tax Returns: Last 3 years of business tax returns.
  • Personal Tax Returns: Last 2 years of personal tax returns for owners with 20% or more ownership.
  • Profit & Loss (P&L) Statement: Current year’s P&L.
  • Balance Sheet: Updated within the last 60 days.
  • Debt Schedule: Breakdown of all business debts, including balances and terms.
  • Personal Financial Statement: For owners with 20% or more ownership.
  • Bank Statements: Last 4 months of business bank statements.

Reasons for SBA Denial:

  • Insufficient collateral for large loan amounts.
  • Inconsistent income or negative cash flow.
  • Personal or business credit issues (less than 680 points for owners).
  • Inability to demonstrate loan repayment ability.

When an SBA 7(a) Loan is Required:

  • Established Business:
    Ideal for businesses with a solid track record that need funds for expansion, equipment, or real estate.
  • Long-Term Growth:
    If the business has a clear long-term growth plan and requires significant capital, an SBA 7(a) loan offers favorable terms.

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    FAQ

    Requirements vary depending on the loan type. Generally, a minimum credit score of 620 is required, though we offer options for borrowers with no credit history in the U.S. Additionally, some products do not require proof of income or employment.

    Approval can take anywhere from 48 hours to 5 days, depending on the type of loan and the documentation provided. Our team works to expedite the process and keep you informed at every stage.

    Yes, we offer loans specifically designed for foreign investors interested in properties in the U.S. These loans do not require proof of income or employment and can be closed under an LLC or company.

    We finance a wide range of properties, including residential, commercial, land, and rental properties. We also offer financing for ground-up construction projects and renovations.

    Loan amounts vary by type and product. For example, we offer loans for rental properties up to $2.5 million and commercial loans up to $5 million.