top of page

What we Offer:

7(a) loans


504 loans

Lender Match /Funding Programs/Loans/7(a) loans

7(a) loans

SBA’s most common loan program, which includes financial help for businesses with special requirements.

  • What is a 7(a) loan?

  • Am I eligible?

  • How do I use the 7(a) loan?

  • What do I need to apply?

  • How do I pay back my 7(a) loan?

  • Existing borrowers

  • What is a 7(a) loan?

  • The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for:

  • Short- and long-term working capital

  • Refinance current business debt

  • Purchase furniture, fixtures, and supplies

  • 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:

Operate for profitBe considered a small business, as defined by SBABe engaged in, or propose to do business in, the United States or its possessionsHave reasonable invested equityUse alternative financial resources, including personal assets, before seeking financial assistanceBe able to demonstrate a need for a loanUse the funds for a sound business purposeNot be delinquent on any existing debt obligations to the U.S. governmentSome businesses may not qualify for a 7(a) loan. Read more about Terms, conditions, and eligibility.

How do I use the 7(a) loan?

Basic uses for the 7(a) loan include:

Long- and short-term working capitalRevolving funds based on the value of existing inventory and receivablesThe purchase of equipment, machinery, furniture, fixtures, supplies, or materialsThe purchase of real estate, including land and buildingsThe construction a new building or renovation an existing buildingEstablishing a new business or assisting in the acquisition, operation or expansion of an existing businessRefinancing existing business debt, under certain conditionsWhat do I need to apply?When you’re ready to apply, you’ll need to gather the appropriate documents. Start the process by working with your local lender within SBA guidelines.

Use the following checklist to ensure you have everything the lender will ask for. Once your loan package is complete, your lender will submit it to SBA:

Business financial statements: Submit the following to help show your ability to repay a loan:

Profit and loss statement – Current within 180 days of your application. Also include supplementary schedules from the last three fiscal years.

Borrower information form : Complete SBA Form 1919 and submit it to an SBA-participating lender.

Financial statements: Complete SBA Form 413 (personal financial statement). This helps SBA and other stakeholders assess your eligibility.

Projected financial statements – Include a detailed, one-year projection of income and finances and explain how you expect to achieve this projection.

Ownership and affiliations: Provide a list of names and addresses of any subsidiaries and affiliates, including concerns, in which you hold a controlling interest or that are otherwise connected to you.

Business license or certificate: Provide a copy of the original business license or certificate of doing business. If your small business is a corporation, stamp your corporate seal on the SBA loan application form. 

Loan application history: Include records of any loans you may have applied for in the past. 

Income tax returns: Include signed personal and business federal income tax returns of your business’ principals for the previous three years.

Resumes: Include personal resumes for each principal.

Business overview and history: Provide a history of the business and its challenges. Include an explanation of why you need the SBA loan and how it will help your business.

Business lease: Include a copy of your business lease, or a note from your landlord, with the terms of the proposed lease.

If you are buying an existing business, gather the following information:

  • Current balance sheet and profit and loss statement

  • Federal income tax returns for the previous three years

  • Proposed bill of sale including the terms of sale

  • Asking price with schedule of inventory, machinery and equipment, and furniture and fixtures

  • Franchise, jobber, or licensing agreements

  • Proof of equity injection

  • You may be required to submit more SBA forms based on the specific use of proceeds or fees paid on a loans package or to a broker or agent.

What is the 504 loan program?

The CDC/504 Loan Program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.

504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA.

The maximum loan amount for a 504 loan is $5 million. For certain energy projects, the borrower can receive a 504 loan for up to $5.5 million per project, for up to three projects not to exceed $16.5 million total.

Am I eligible?

To be eligible for a 504 loan, your business must:

  • Operate as a for-profit company in the United States or its possessions

  • Have a tangible net worth of less than $15 million

  • Have an average net income of less than $5 million after federal income taxes for the two years preceding your application

  • Other general eligibility standards include  falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan.

Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to contact a Certified Development Company in their area.

How do I use a 504 loan?

A 504 loan  can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:

  • Existing buildings or land

  • New facilities

  • Long-term machinery and equipment

  • Or the improvement or modernization of:

Land, streets, utilities, parking lots and landscaping

Existing facilities

A 504 loan  cannot  be used for:

Working capital or inventoryConsolidating, repaying or refinancing debtSpeculation or investment in rental real estate

What do I need to apply?

504 loans are available exclusively through Certified Development Companies (CDCs). First,  find a CDC  in your area to ensure you are dealing with a qualified lender.

Then begin to prepare and assemble your  504 loan authorization package, using our  504 Authorization File Library  to identify the documentation you will need to apply for your 504 CDC loan.

How do I pay back my 504 loan?

Loan repayment terms vary according to several factors:

Repayment terms

Both 10- and 20-year maturity terms available

Interest rates

Pegged to an increment above the current market rate for 5-year and 10-year U.S. Treasury issues

Totals approximately 3 % of the debt, rate may be financed with the loan

bottom of page