SBA Financing
SBA 7(a) Loan
The SBA 7(a) program is the flagship U.S. Small Business Administration loan for established operating companies. Longer amortization and lower down payments make it ideal for acquisitions, refinancing, real estate and major working-capital needs.
Overview
What is a SBA 7(a) Loan?
The SBA 7(a) is the U.S. Small Business Administration's flagship guaranty program. An SBA-approved lender originates the loan and the SBA guarantees a portion of it, which allows lenders to extend longer terms and lower down payments than they typically would on a purely conventional basis.
For established, cash-flow-positive businesses, this frequently means access to longer amortization, larger loan sizes, and use of proceeds that many conventional lenders will not fund — including business acquisitions, partner buyouts, real estate, and consolidation of higher-cost debt.
Best For
Established, cash-flow-positive businesses ready for a major capital event.
Common Uses
Best for these business needs
How it works
A clear path from application to funding
- 1
Apply
Submit a short application and top-line business details.
- 2
Document collection
Business & personal tax returns, financials, debt schedule and use-of-proceeds detail.
- 3
Lender & SBA underwriting
Your file is matched to an SBA-approved lender aligned to your industry and structure.
- 4
Term sheet
Review proposed rate, amortization, collateral and closing conditions.
- 5
Closing
SBA authorization, closing package and funding.
Eligibility
Qualification considerations
Eligibility varies by lender and financing program. The items below are general considerations, not guaranteed approval requirements.
- Time in business
- Typically 2+ years operating history, with exceptions for acquisitions.
- Revenue & cash flow
- Demonstrated debt-service coverage sufficient for the requested loan.
- Credit profile
- Owner credit reviewed as part of a full underwriting file.
- U.S. operations
- For-profit U.S. small business meeting SBA size standards.
- Use of funds
- Must fit permitted SBA 7(a) uses of proceeds.
Documents
Documents you may need
Exact documentation depends on loan size, lender and use of funds.
- Business tax returns (typically 3 years)
- Personal tax returns for 20%+ owners
- Interim financial statements (P&L, balance sheet)
- Business debt schedule
- SBA personal financial statement
- Purchase agreement or use-of-proceeds detail
- Business bank statements
Benefits
Why businesses choose it
- Long amortization periods reduce monthly payment burden
- Lower down payments than many conventional loans
- Broad permitted uses of proceeds
- Larger loan sizes than most conventional small-business options
Considerations
What to think about
- More documentation than short-term products
- Underwriting timeline is measured in weeks, not hours
- Personal guarantee generally required for 20%+ owners
- Collateral may be required depending on structure
FAQ
Frequently asked questions
Disclosure. SBA 7(a) financing is originated by SBA-approved lenders and partially guaranteed by the U.S. Small Business Administration. Mosky Capital arranges financing through its lender network; Mosky Capital is not the SBA and is not a direct SBA lender.
You may also consider
Term Loan
Traditional financing with fixed repayment terms and competitive rates for established businesses.
Learn moreEquipment Financing
Specialized financing for purchasing or leasing business equipment and machinery.
Learn moreLine of Credit
Access funds when you need them with a flexible credit line for ongoing business needs.
Learn moreReady to explore your financing options?
Start an application or speak with a senior underwriter to structure the right capital for your business.