The SBA 7(a) program has the following eligibility requirements:

• The business must be officially registered as a for-profit business and must be operating legally.
• The business owner cannot be on parole.
• The business must have fewer than 500 employees and less than $7.5 million revenue on average each year for the past three years.
• The business must have a net income of less than $5 million (after taxes and not counting carry-over losses) and a tangible net worth of less than $15 million.
• The business owner must show they are investing their own time and money into the business, having “invested equity.”
• The business must be physically based in the United States and must be doing business with the U.S. and its territories.
• The business must be in an SBA-eligible industry (speculative, illegal and non-profit businesses are not eligible).
• The business owner must show they have already tried and failed to get funds from other financial lenders, fully exhausting non-SBA loan options.
• The business owner must prove they have a sound business purpose for the loan they are requesting, and that their intended funds usage is approved by the SBA.
• The business owner must prove they are not delinquent on any existing debts to the U.S. government (taxes, student loans).

For more information, please visit www.commercialrealestate.loans/sba-7a and www.sba7a.loans/eligibility-and-qualifications-for-the-sba-7a-loan.

The SBA 7(a) program is available to businesses with fewer than 500 employees. It can be used for anything from buying or leasing office space, to purchasing equipment, and even meeting payroll expenses. The eligible business types for SBA 7(a) loans include:

• Retail
• Manufacturing
• Wholesale
• Service
• Restaurants
• Franchises
• Agriculture
• Construction
• Transportation
• Hotels and Motels
• Non-profits

For more information, please visit https://www.sba7a.loans/eligible-and-ineligible-industries.

The SBA 7(a) loan program offers several advantages, including flexible terms, competitive interest rates, and government backing.

The SBA 7(a) loan program offers flexible terms, meaning you can tailor your loan to fit your specific needs. For example, if you need a large loan for long-term financing, you can structure your loan accordingly.

The SBA 7(a) loan program also offers competitive interest rates. Interest rates are typically lower than those offered by traditional lenders, such as banks.

Finally, the SBA 7(a) loan program offers government backing. Loans of up to $5 million qualify under SBA 7(a), with the SBA providing a guarantee of up to $3.75 million, or 75%. For loans worth less than $150,000, the government will back up to 85% of the debt.

SBA 7(a) loan disadvantages include:

• Lengthy approval times (for standard SBA 7(a) loans)
• Lots of documentation
• Collateral is often required
• Certain businesses, including real estate investing, lending, gambling, and speculation are prohibited
• High credit scores are typically required (typically 680+)
• May be restrictions on supplemental/additional financing

Source: www.sba7a.loans/sba-7a-loans-small-business-blog/pros-and-cons

Disadvantages include:

• They may be difficult to get if you don't have a strong credit history, though this is not a hard requirement.
• Significant paperwork is required by the SBA.
• They cannot be used for investment properties.

Source: www.commercialrealestate.loans/blog/difference-between-sba-7a-and-sba-504-in-cre

The maximum loan amount for the SBA 7(a) program is $5 million. If you borrow the maximum, the SBA will be funding $3,750,000 of the loan and your private lender will cover the rest. For larger loans, you can try the SBA 504 loan calculator.