Wondering if you or your business idea may qualify for an SBA 7(a) loan, but aren’t sure if you should apply? We can help.
The first thing to note is that, while SBA 7(a) loans are partially backed by the Small Business Administration, the SBA does not actually give the loan itself. Individual lenders like our wholly-owned subsidiary, Fund-Ex Solutions Group, are the ones that provide the loans to business owners and entrepreneurs like you.
So, in order to qualify and receive funds, you need to meet the requirements of the SBA program you’re interested in as well as your lender’s criteria. Let’s break it down further.
Who can apply for an SBA 7(a) loan?
To be considered eligible for an SBA 7(a) loan, certain requirements must be met:
The company needs to be a for-profit business
It must operate or be intended to operate within the US or US-owned territories
You must have sufficient owner equity to invest in the business
You must have invested your personal finances or utilized other financing options before applying for the SBA 7(a) loan
You must have fewer than 1,500 employees and meet the requirements of the SBA to be considered a small business
Examples of business types that may qualify include bakeries, franchises (with restrictions), agricultural companies like farms and fishing vessels (with restrictions), tech start-ups, retail stores, service providers, and more.
Beyond what is required by the SBA to apply for an SBA 7(a) loan, you’ll also have to consider the individual lender’s process, their requirements for approval, and their turnaround time.
For example, compared to other SBA lenders, Fund-Ex Solutions Group provides a streamlined experience. As part of the SBA’s Preferred Lender Program, our wholly-owned subsidiary provides SBA funding to customers with greater speed and flexibility.