7a Loan

A 7a loan falls under the SBA loan program (small business administration). These loans are used to get business loans funded that have a little more risk. The government guarantee can mitigate a significant portion of the liability to a lender in the event of a loan default. These loans typically take 45-60 days to get funded. The time it takes to start that clock is greatly up to you. On average we save clients 2 weeks in the application process.

Most lenders will issue SBA 7a loans in the current economic climate; however, not many lenders will utilize the SBA guarantee the same. For example the SBA may allow a loan that only requires a 10% equity injection by the business owner; but the bank will require a 25% injection. The bank/lender is still in control of the purse. The SBA merely mitigates some of the risk for the lender. Not all lenders play by the same set of rules.

Give us a call to review your deal. We know which lenders are making loans today.

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