SBA 7(a) Program
The SBA 7(a) Loan Guaranty Program is one of the SBA’s primary lending programs. Through participating lenders like us, the 7(a) program authorizes the SBA to provide business loans to small businesses that are unable to secure financing through normal lending channels. An SBA 7(a) loan may be used to establish a new business or to assist in the operation, acquisition or expansion of an existing business.
What are primary advantages to businesses?
- A fully amortizing loan of up to 25 years, with no calls or balloon payments
- Higher Loan to Values than conventional loans
- Below market interest rates
- For-profit businesses
- Small to medium sized businesses
- Owner-users that occupy a minimum of 51% of the usable square footage of an existing building or 60% of newly constructed space acquired with loan proceeds
Allowable uses of loan proceeds:
- Acquisition of land or building, construction, expansion or conversion of existing facilities
- Acquisition of equipment, machinery, furniture, fixtures, supplies or materials
- For long term working capital including the payment of accounts payable and/or for the purchase of inventory
- To refinance or consolidate existing business indebtedness
- For short term working capital needs
- To purchase an existing business
Note: The maximum amount of an SBA 7(a) loan is $5,000,000.
We understand your top priority is operating your small business, not completing paperwork for loan applications. Our SBA team leverages experience and expertise to make the loan process as simple, easy to understand and as seamless as possible in four easy steps:
Step One: Application & Initial Project Evaluation
An SBA loan specialist will discuss your loan request with you and ask the appropriate questions to determine if the proposed project qualifies for SBA financing. Once the determination is made, a checklist of required information needed will be discussed and sent to you. Upon receipt and a favorable evaluation of the financial information (part of underwriting), we will issue a loan proposal. As consultants, we perform this evaluation and loan proposal at no cost or obligation to you.
Step Two: Full Underwriting & Bank Approval
If the terms and conditions of the loan proposal are acceptable, we will complete underwriting the loan request for Bank approval.
Step Three: Commitment Letter & SBA Application
Once First Landmark Bank has approved your loan request, we will present a commitment letter outlining the terms and conditions of the approval. Upon acceptance of the commitment letter, we will work to complete the SBA application on your behalf.
Step Four: Loan Closing
Upon receipt of SBA approval, we will coordinate the loan closing with our closing attorney. During the closing process, we will order any necessary “third-party” reports (appraisals, environmental investigations, title searches) and keep you fully aware of all costs associated with these reports. We'll work with you through the closing process to eliminate the chances of any surprises and close the loan as soon as possible.