Why choose a 7a loan?

An SBA 7a loan can be used to purchase, refinance, construct, or renovate commercial property you intend on occupying at least 51%. SBA 7a loans require a minimum 10 percent down payment and the maximum loan amount for an SBA 7a loan is $5 million, $7 million with a pari passu.

SBA 7a Loan Details

Loan Size
  • $2 million to $7 million
Eligible Business Size
  • Determined by industry type and based on # of employees or annual revenue
  • Business net worth not to exceed $25MM
Interest Rate
  • Variable rate adjusted monthly or fixed rate
  • Fully amortized through the term of loan
Terms and Amortization
  • Up to 25 years – real estate
  • All loans are fully amortized
  • No balloon payments
Loan Structure
  • Loan structure negotiable; dependent on risk
  • 10% down payment (minimum)
Loan Purpose
  • Purchase existing building
  • Refinance existing building
  • Land acquisition and ground up construction (includes soft cost development fees)
  • Expansion of existing building
  • Finance building improvements
Loan Requirements
  • 51% owner occupancy required for existing building
  • 60% owner occupancy required for new construction
  • 1st lien position on the subject assets acquired by loan proceeds
  • May require pledge of personally owned real estate
  • Personal guaranties of the principal owners of 20% or more ownership are required
Prepayment Penalty
  • Declining 5-3-1%

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