What an SBA 7(a) loan can fund
- Buying or refinancing owner-occupied commercial real estate
- Acquiring an existing business, including goodwill
- Partner buyouts
- Equipment, inventory and working capital
- Combining real estate and business needs into one loan
Who qualifies
For-profit U.S. businesses that meet the SBA's size standards, can show the ability to repay from business cash flow, and have owners who will personally guarantee the loan. For real estate, the business must occupy at least 51% of the building.
Why use a broker for an SBA loan
SBA lenders vary a lot in appetite, industry focus and speed. Some won't do startups, others avoid hospitality or restaurants. We match your deal with SBA lenders who actually want it, and we help you package it so underwriting goes smoothly.
In a recent Boston deal, a tenant bought the mixed-use building he had been leasing for $654,500 through SBA financing, even though documenting all of his sales income was a challenge.
What SBA lenders will ask for
- Three years of business tax returns, plus year-to-date financials
- Three years of personal tax returns for each owner of 20% or more
- Personal financial statement for each owner (SBA Form 413)
- Business debt schedule
- Purchase contract or project details, and resumes of the owners
Buying real estate only? Compare with the SBA 504 loan, which often has lower fixed rates on the real estate.
Terms shown are typical market ranges across our lender network, not a commitment. Your actual terms come in writing after we review your deal.
Recent closings
Solved: A tenant bought the building he leased, despite trouble documenting all of his sales income.
Frequently asked questions
What is the maximum SBA 7(a) loan amount?
The standard SBA 7(a) program goes up to $5 million. Program rules change from time to time, so we confirm current limits for your deal.
SBA 7(a) or SBA 504: which is better for buying a building?
504 usually wins on fixed rates for real estate and equipment. 7(a) is more flexible: it can include working capital, business acquisition and goodwill in the same loan. Many borrowers compare both.
Can I use an SBA loan to buy an investment property?
No. SBA loans are for owner-occupied property. For investment real estate, look at conventional purchase loans or DSCR loans.
Do I need collateral for an SBA 7(a) loan?
Lenders take available business and real estate collateral, and owners with 20% or more typically sign personal guarantees. A lack of collateral alone isn't always a deal-breaker.