SBA 7(a) EXPLAINED
What is the SBA 7(a) Loan Program?
The SBA 7(a) Loan Program is the most popular and versatile financing option offered by the U.S. Small Business Administration (SBA). Since its creation in 1953, the program has played a critical role in supporting small businesses, helping them secure the funding they need to grow and thrive.
SBA 7(a) Background
SBA 7(a) loans are designed specifically to support the backbone of our economy—small businesses. Recognizing that many small businesses face challenges in securing conventional loans, the government created this program to provide accessible financing options.
Unlike conventional loans, which often have strict credit requirements and larger down payments, SBA 7(a) loans offer more favorable terms. The government partially guarantees these loans, reducing the risk for lenders and encouraging them to work with small businesses that might struggle to qualify for traditional financing.
Lender Partnership
The SBA itself doesn’t lend money directly to businesses through the SBA 7(a) program. Instead, it collaborates with approved lenders to facilitate funding.
As your trusted advisor, we connect you with these approved lenders who provide the actual funds for the loan. The SBA sets the guidelines and guarantees a portion of the loan—typically 75%—which reduces the lender's risk and allows them to offer you more favorable loan terms. We guide you through the process, ensuring you find the best lending partner and loan structure to meet your business needs.