SBA 7(a) Loan

SBA 7(a) Loan OverviewSBA 7(a) Loan Overview

FNB Small Business Finance provides long-term financing solutions uniquely designed for each business acquisition transaction. Our team works with you to understand your business and how to achieve your business goals. As a Preferred SBA Lender, we can help small business owners achieve financing quicker because we able to approve loans on behalf of the Small Business Administration (SBA).

The SBA 7(a) Loan Product is one of the most flexible commercial finance products available today.

Objectives

Proceeds can be used for a wide variety of business purposes, including the purchase of owner-occupied real estate, leasehold improvements, equipment, working capital, business acquisition, partner buyouts, and business startup expenses. It can also be used to refinance existing business debt that was used for any of these purposes. In many cases, different uses of proceeds can be accomplished all in one loan, which simplifies the loan process for the borrower and usually results in lower monthly payments than other financing products on the market.

Terms

Typical loan terms range from 10 – 25 years and are fully amortizing, so there are no balloon payments. Depending on the use of proceeds, financing may range from 70% to 100% of Total Project Cost. SBA 7(a) Loans have a maximum amount of $5 Million with no minimum amounts. Typically at FNB Small Business Finance, we consider loan requests from $350,000 up to $5,000,000. To be eligible for this type of loan, a business must be for-profit and fall within a size limit of having a tangible net worth of less than $15 Million and have had an average profit of less than $5 Million in the last two years.

The SBA requires that all available collateral be taken to support an SBA 7(a) loan, however, if the loan is not fully collateralized the SBA will still support the loan based on other underwriting requirements.

Pre-Application Checklist:

Documents to have available for a call with our team:

  • All current mortgage statements
  • Current bank statements and/or account balances
  • List of all owners having 20% or more ownership in the subject business along with any affiliates (if applicable)
  • List of all current business debts and their respective monthly payments
  • Tax Identification Number for the business and/or its affiliates
  • DUNS (Data Universal Numbering System) number
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