About The SBA7(A) Program
Use of Proceeds:
• Land and building acquisition
•Machinery and equipment
•Inventory Working capital
•Refinancing – New loan must reduce loan payment by 20% on long term debt and debt must have been kept current to be eligible for refinancing
•Fixed assets--the borrower must be the user of those assets
•SBA guaranty fee and SGRC packaging fee
$3,750,000 is the maximum guaranty. $5,000,000 - maximum gross loan amount.
Type of Business
Eligible businesses include most operating for-profit businesses. However, certain size standards set by SBA do apply. Manufacturing and wholesale businesses must employ less than 500 persons. Retail and service businesses may not have gross annual sales that exceed $3.5 million unless otherwise specified in the SIC code. Ineligible businesses include: passive income and real estate companies, developer/landlord deals, financial institutions, media such as newspapers and radio stations and not-for-profit businesses.