There have been major upgrades to many of the Small Business Administration loan programs. Streamlined loan underwriting has made it easier to secure a microloan, macro loan, and 7A financing.
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Some of the new programs and adjustments are as follows:
- Guarantee fees are waived on all eligible SBA 7(a) loans up to $1,000,000—significant guarantee fee waivers are also available for loan sizes over $1,000,000.
- SBA MICRO working capital is now available up to $50,000 (up from $25,000), rates start at Prime + 3%, and funding in days without collateral or financials is possible.
- SBA MACRO working capital is now available up to $500,000 (up from $350,000), rates start at Prime + 3%, and streamlined processing makes closing in weeks possible.
These are great features that can help your business manage cash flow and working capital. Contact us for help at https://bbbookworks.com/.
ABOUT THE 7(A) LOAN PROGRAM
The 7(a) loan program is SBA’s primary business loan program for providing financial assistance to small businesses.
The 7(a) Loan Program, SBA’s primary business loan program, provides loan guaranties to lenders that allow them to provide financial help for small businesses with special requirements. 7(a) loans can be used for:
- Acquiring, refinancing, or improving real estate and buildings
- Short- and long-term working capital
- Refinancing current business debt
- Purchasing and installation of machinery and equipment
- Purchasing furniture, fixtures, and supplies
- Changes of ownership (complete or partial)
- Multiple purpose loans, including any of the above
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.
To be eligible for 7(a) loan assistance, businesses must:
- Be an operating business.
- Operate for profit.
- Be located in the U.S.
- Be small under SBA Size Requirements.
- Not be a type of ineligible business.
- Not be able to obtain the desired credit on reasonable terms from non-Federal, non-State, and non-local government sources.
- Be creditworthy and demonstrate a reasonable ability to repay the loan.