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SBA 7(a) Loans

SBA 7(a) loans make it easier for small businesses to grow with longer payment terms and lower upfront costs.

FUNDING SUPPORT UP TO $5 MILLION | ONE APPLICATION. MULTIPLE FUNDING SOLUTIONS

Small business loans built with flexibility in mind.

Access up to $5 million to help your business grow and thrive—whether it’s real estate financing with terms up to 25 years, or loans for non-real estate debt lasting up to 15 years.

Enjoy lower monthly payments thanks to longer repayment periods, with no future balloon payments to worry about. Choose from variable or fixed-rate options, and rest easy knowing non-collateral dependent loans are available. Plus, closing costs can be conveniently rolled into your loan.

Invest in your business with a loan that adapts to your needs!

Tailored Loan Solutions for Your Business

We’re here to help you build the perfect loan structure to meet your business goals—no matter the purpose. SBA 7(a) loans are a versatile solution, ideal for financing needs like:

Acquiring a new business
Growing or expanding your current business
Financing a franchise
Purchasing or refinancing machinery and equipment (up to 100%)
Restructuring lines of credit and leases
Acquiring or refinancing real estate (up to 90% financing for 51% owner-occupied properties)
Funding construction projects (up to 90% financing)

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Frequently Asked Questions

Am I eligible for an SBA 7a loan?

Eligibility for an SBA 7a loan depends on several factors, and it’s difficult to determine without knowing the specifics of your situation. This is one of the most common questions we receive.

To assess your eligibility, we (and any debt advisor) consider four key areas:

Type of Business: The nature of your business and its alignment with SBA loan requirements.
Business Financials: For existing businesses, this includes historical financial data. For new ventures, projected financials are essential.
Your Credit Profile: Your credit history and score play a significant role in eligibility.
Personal Financial Situation: Personal finances are often reviewed to assess your repayment capability.
Your Experience: Your professional background and experience in your industry.

If your case has unique complexities, it may be simpler to give us a call directly—we’re happy to help!

How much equity do I need to contribute in an SBA 7a loan structure?

SBA lenders typically won’t cover 100% of the acquisition price or the total cost of your expansion project. Borrowers are required by SBA regulations to contribute at least 10% of the total cost themselves, and this percentage cannot be borrowed from another party (though there are exceptions).

Lenders may provide up to 90%, but it’s not uncommon for them to request more than 10% equity from the borrower. To bridge the gap, seller financing (also known as seller carrybacks) can be utilized. However, these seller notes must meet specific lender requirements for maturity, interest rates, and subordination.

There are certain exceptions, such as in partner buyouts, where the equity requirement may be less than 10%.

What are the current rates for SBA 7a loans?

Most 7(a) lenders provide variable-rate loans tied to the Prime rate. These loans are typically priced between Prime + 1% and Prime + 2.75%, with the most common rate being Prime + 2.75%.

The Prime rate is determined by individual banks and typically fluctuates in response to changes in the Federal Reserve’s target Federal funds rate.

What are the loan maturities for SBA 7a loans?

The maximum maturity of a loan depends on the purpose of the transaction:

For business acquisitions and expansions, the maximum term is 10 years.
If real estate is part of the transaction, the term can extend up to 25 years.
When a business acquisition involves both business assets and real estate, the maturity period is calculated as a weighted average based on the value of the assets and the real estate.

How long does it take an SBA 7a loan to close?

Most SBA loans close just as quickly as conventional bank loans—at least when you work with Preferred lenders like those at Aspen Business Funding.

Typically, you can expect the process to take about 30-60 days after receiving a proposal from the lender. The exact timeline depends on the complexity of the deal and how quickly you provide the necessary documents.

For business acquisition or owner-occupied real estate loans, additional steps like third-party appraisals of the business or property, or updating insurance documents, may extend the timeline. These factors often bring closing closer to the 60-day mark, or sometimes longer for more complex cases.

While SBA loans do require more documentation, straightforward deals can still close within 30-60 days without delays.

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