SBA 7(a) Loan Requirements & Eligibility
Securing an SBA 7(a) loan can be a game-changer for small business owners seeking affordable financing. However, the eligibility criteria can be complex and detailed. To simplify the process, we've outlined the key criteria that determine whether a borrower is likely to qualify with one of our partner lenders.
Are You Eligible?
These aren’t all the rules, and some lenders might still have options if you don’t meet every one. But these are the main things that make a business a good fit for an SBA 7(a) loan with us.
Profitable
The business is a successful, for-profit company with the ability to comfortably make loan payments.
Loan Payment History
Neither the business nor its owners have recently missed a loan payment.
Good Credit
All owners have good personal credit (700+).
Employee Count
The business has fewer than 500 employees.
U.S. Ownership
All owners are U.S. citizens or permanent residents.
Tax Compliance
Business and personal taxes are filed and paid.
No Defaults
No owner has defaulted on a federally backed loan.
Bankrupt-Free
No owner has filed for bankruptcy in the past seven years or is currently in bankruptcy.
No Incarceration
No owner has been incarcerated in the past seven years or is currently in jail.
No Restricted Industries
The business is not involved in cannabis, gambling, adult entertainment, or passive investments.
What Are the Main Benefits of SBA 7(a) Loans?
SBA 7(a) loans offer several advantages that make them a popular financing option for small business owners. Here are the key benefits:
What Can SBA 7(a) Loans Be Used For?
SBA 7(a) loans offer flexibility to support a wide range of business needs. Here are some of the most common ways they can help your business.
Required Documentation
When applying for an SBA 7(a) loan, you’ll need to provide the following documents to demonstrate your financial health and business viability:
Business Financial Statements
Profit and loss statements, balance sheets, and cash flow statements from the past 2–3 years.
Personal Financial Statements
Personal tax returns and financial statements for all business owners.
Business Plan
A detailed plan outlining your business model, market analysis, and financial projections.
Tax Returns
Business and personal tax returns from the past 2–3 years.
Legal Documents
Business licenses, registrations, and articles of incorporation.
