What is a 7(a) loan?
The 7(a) Loan Program, SBA’s primary business loan program, provides loan guaranties to lenders that allow them to provide financial help for small businesses with special requirements. 7(a) loans can be used for:
- Acquiring, refinancing, or improving real estate and buildings
- Short- and long-term working capital
- Refinancing current business debt
- Purchasing and installation of machinery and equipment, including AI-related expenses
- Purchasing furniture, fixtures, and supplies
- Changes of ownership (complete or partial)
- Multiple purpose loans, including any of the above
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 for 7(a) loan assistance, businesses must:
- Be an operating business.
- Operate for profit.
- Be located in the U.S.
- Be small under SBA Size Requirements
- Not be a type of ineligible business
- Not be able to obtain the desired credit on reasonable terms from non-Federal, non-State, and non-local government sources.
- Be creditworthy and demonstrate a reasonable ability to repay the loan.
Read more about Terms, conditions, and eligibility.
How do I apply?
You can use SBA’s Lender Match tool to connect with a participating SBA lender. You will apply for your loan directly through your lender.
The contents of the loan application vary depending on the size of the loan and the lender's processing method. Your lender will help you determine which documents you'll need based on your individual circumstances.
You will always work directly with your lender and not with SBA.
How do I pay back my 7(a) loan?
Loan repayment terms vary according to several factors.
- Most 7(a) term loans are repaid with monthly payments of principal and interest from the cash flow of the business
- Payments stay the same for fixed-rate loans because the interest rate is constant
- For variable rate loans, the lender may require a different payment amount when the interest rate changes
Existing borrowers can create an account in the MySBA Loan Portal (lending.sba.gov) to monitor their loan status, view statements, payment history and more.
Payments can only be made using the MySBA Loan Portal for SBA-purchased 7(a) loans. All others can continue to set up and manage online payments at Pay.gov.