Loan programs / Government-backed
SBA 7(a) Loans
The SBA’s most flexible loan program. Longer repayment terms and lower down payments than most conventional loans, for working capital, equipment, business purchases and owner-occupied real estate.
Loan size
Up to $5 million
Terms
Up to 10 years for most uses, up to 25 years with real estate
Down payment
Often 10% or more, depending on the use
Timeline
Usually several weeks to a few months
Who it’s for
A good fit if you are…
- Established businesses that need longer terms than a conventional bank loan offers
- Buyers of an existing business or franchise
- Owners who want to buy the building they operate in
- Businesses that are 100% owned by U.S. citizens, lawful permanent residents or U.S. nationals, as current SBA rules require
Common uses
What the funds can cover
- Working capital and growth
- Equipment and furniture
- Buying a business or a partner’s share
- Buying, building or improving owner-occupied property
- Refinancing eligible business debt
Figures above are typical ranges, not quotes. Your actual terms depend on the lender and your business.
What to expect
How it works with Benchmark
- Eligibility review. We confirm your business, ownership and use of funds meet SBA rules before anything goes to a lender.
- Lender match and term sheet. We present your file to SBA lenders active in your industry and loan size, and review their term sheets with you.
- Underwriting and SBA approval. The lender underwrites the loan and obtains the SBA guaranty, often under its own delegated authority.
- Closing. You sign loan documents and the funds are disbursed for the approved uses.
Documents
What you’ll typically need
Your advisor will send a checklist tailored to your request and a secure upload link. Please don’t email tax returns or IDs.
- Business tax returns, last 3 years
- Personal tax returns for each owner of 20% or more, last 3 years
- Year-to-date profit and loss statement and balance sheet
- Personal financial statement (SBA Form 413)
- SBA Form 1919 (Borrower Information Form)
- Business debt schedule
- Business plan and projections for startups and acquisitions
- Resumes of owners and key managers
Questions
Common questions
Does the SBA lend the money?
No. The loan comes from a bank or other SBA lender. The SBA guarantees part of it, which lets the lender offer longer terms and accept a smaller down payment.
Will I need to personally guarantee the loan?
Generally, yes. Owners of 20% or more usually sign a personal guarantee, and the lender may take available business and personal collateral.
How much do I need to put down?
It depends on the use. Under current SBA rules, startups and business purchases generally need an equity injection of at least 10% of the project. Other uses vary by lender.
Next step
See if SBA 7(a) is the right fit
One short application. An advisor will review it, recommend the best program, even if it isn’t this one, and walk you through what comes next.
Benchmark Commercial Lending arranges commercial financing through a network of third-party lenders and funders and may also lend directly. All financing is subject to approval. Rates, terms, amounts and requirements vary by program, provider and borrower qualifications and can change. Program details on this page are general information, not an offer or commitment to lend. Financing is for business purposes only.