SBA 7(a) Loans Explained
Nov. 8, 2018
By: Kevin Riffey, SVP, Small Business Administrator
Obtaining financing for a small business—whether you’re just getting started or looking to expand—can be a daunting process. I’d love to save you some heartburn if you’re just starting to research your options when it comes to Small Business Administration (SBA) loans. The SBA offers the best, most affordable business financing out there. And my team at The Bank of Tampa can help you navigate the process, from start to finish, so you are on your way to starting your own business venture or expanding one you’ve already started. The 7(a) loan program is by far the SBA’s most popular, and The Bank of Tampa’s SBA team can walk you through whether it’s a good option for you and the future of your business.
The 7(a) program offers flexibility, longer terms and potentially lower down payments when compared with other financing options. Repayment terms can vary between fixed and variable-rate, but are paid via monthly payments of principal and a market rate interest. Loans through this program can mature anywhere from seven to 25 years, depending on, for example, the purpose of the loan proceeds. The SBA considers a few standards when looking at eligibility for SBA 7(a) loans. Your business must:
- Meet the size standards and be considered a small business within your specific industry
- Operate as a for-profit business
- Have reasonable equity to invest
- Do business in the United States
- Have tried other financial resources, including personal assets, before applying for an SBA loan
Small business owners work with an SBA-approved lender, like The Bank of Tampa, to complete the loan process. Once obtained, SBA 7(a) loans offers loan amounts up to $5 million. Loans can be used to:
- Fund startup costs,
- Purchase equipment and land,
- Make repairs,
- Refinance debt and more
If you’re interested in learning more about SBA lending and what The Bank of Tampa can do for you, please feel free to reach out to me directly at KRiffey@bankoftampa.com.
We are committed to working with small businesses in Tampa Bay. Partially guaranteed by the Small Business Administration, SBA loans provide an alternative when conventional financing does not fit the needs of a small business. Our SBA loan specialists’ help you select, apply for, and quickly process the right loan to fit your needs. We offer extended terms and lower equity requirements to improve cash flow and business efficiency.