SBA 7(a) Loans
An SBA 7(a) loan is the SBA's most flexible loan program: up to $5 million for nearly any business purpose, including working capital, buying a business, refinancing debt, equipment and owner-occupied real estate. Sunview Lending is a wholesale brokerage that helps business owners find the right SBA or business loan program, including whether 7(a) fits.
Talk to our team Mon-Fri, 9 AM-6 PM PT.
Checking won't affect your credit score. Results are an estimate, not an approval or commitment to lend.
SBA 7(a) at a glance
| Maximum amount | $5,000,000 |
|---|---|
| Typical term | Up to 10 years (equipment, working capital); up to 25 years (real estate) |
| Loan sizes | 7(a) Small: up to $350,000. Standard 7(a): over $350,000 |
| Cash-flow coverage | Standard 7(a) requires 1.15x debt service coverage; 7(a) Small and Express follow lender underwriting |
| Down payment | Typically at least 10% for startups and business acquisitions; otherwise set by the lender |
| Credit score | SBA sets no minimum score; lenders typically look for 640-680+ |
| Best for | Buying a business, working capital, debt refinance, expansion, owner-occupied real estate |
Source: sba.gov. Program rules can change; this is general information, not an offer to lend.
What you can use a 7(a) loan for
Working capital, buying an existing business or franchise, partner buyouts, refinancing business debt, expansion, equipment, and buying or improving owner-occupied commercial real estate.
Who qualifies
For-profit small businesses operating in the U.S. that meet SBA size standards and can show the ability to repay. Ineligible businesses include lenders and investment firms, passive real estate investors, nonprofits, pyramid or MLM businesses, businesses earning more than a third of revenue from gambling, illegal businesses (including cannabis), and political or lobbying organizations. Many lenders prefer two or more years in business. SBA sets no minimum score; lenders typically look for 640-680+. Standard 7(a) loans (over $350,000) require 1.15x cash-flow coverage; 7(a) Small and Express follow lender underwriting.
Rates and fees
SBA sets maximum rates for 7(a) loans based on a base rate plus a capped spread, and the spread depends on loan size. Your actual rate and fees depend on the lender and your file. Call us for current numbers.
Buying a business with a 7(a) loan
7(a) is the most common SBA program for buying an existing business or franchise. Expect to put in typically at least 10% of the project cost. We'll walk you through what the lender will need.
Documents checklist
- Business and personal tax returns (usually 3 years)
- Year-to-date profit and loss and balance sheet
- Recent business bank statements
- A business debt schedule
- Ownership and entity documents
- A business plan with projections for startups or acquisitions
Frequently asked questions
What credit score do I need for an SBA 7(a) loan?
SBA sets no minimum score; lenders typically look for 640-680+, along with healthy cash flow.
How much down payment do I need?
Startups and business acquisitions typically need at least 10% down. For other uses, the lender sets the requirement based on your file.
How long does a 7(a) take?
It depends on the lender, the loan size and how complete your documents are. We'll give you a realistic picture once we review your situation.
Can I use a 7(a) to buy an existing business?
Yes. Buying a business or franchise is one of the most common uses of a 7(a) loan.
Can a startup qualify?
Yes, startups can be eligible, typically with at least 10% down. Many lenders prefer two or more years in business.
What are current SBA 7(a) rates?
SBA caps 7(a) rates at a base rate plus a maximum spread that depends on loan size. Call (818) 452-4993 for current numbers.
Do I need collateral?
Lenders generally take available business collateral, and sometimes personal assets, but a lack of collateral alone isn't always a reason to decline. Your lender will explain the requirements.
Does prequalifying hurt my credit?
No. Checking with our 60-second prequal won't affect your credit score.
Talk to our team Mon-Fri, 9 AM-6 PM PT.
Checking won't affect your credit score. Results are an estimate, not an approval or commitment to lend.