What Are The 7(a) SBA Loan Programs?

The SBA 7(a) loan program category is the most common and wide-ranging program available. It encompasses the Express Program, Export Program, Rural Lender Advantage Program and Special Purpose Loan Program. The 7(a) category of SBA loans can be used for both start-up and existing businesses, and it has the fewest purpose requirements of any of the SBA programs.

SBA 7(a) Loan Guarantee

Like all SBA loans, the 7(a) program is a loan guarantee service, not a direct loan. This means the borrower will take a loan from a private lender and then receive a guarantee through the SBA to make the loan more affordable. To get started with this process, it is best to apply directly for a private loan. If the lender informs you that you will not qualify for the loan without an SBA guarantee, take the next steps to apply for the SBA 7(a) loan program.

SBA 7(a) Application

When you are working with an SBA-approved lender, you can apply directly through the lender for the additional insurance you need in order to secure the loan. Otherwise, contact your local SBA service center to request assistance in applying. You will need to qualify based on your financial resources, history of repaying loans and your business plan.