SBA 7(A) LOAN
Category: Federal
| Standard 7(a) | |
|---|---|
| Maximum loan amount | $5 million |
| Maximum SBA guarantee % | 5% for loans up to $150,000 and 75% for loans greater than $150,000 |
| Interest rate | Lenders and borrowers can negotiate the interest rate, but it may not exceed the SBA maximum |
| Eligibility decision |
Eligibility decision By the SBA. Qualified lenders may be granted delegated authority (PLP) to make eligibility determinations without SBA review. |
| Revolving lines of credit | Up to 10 years (Permitted only under CAPLines submission (see below). |
| SBA turnaround time | 5-10 business days |
| Forms |
SBA Form 1919 and SBA Form 1920 are required for every loan (other SBA Forms may be required) |
| Collateral | Lenders are not required to take collateral for loans up to $25,000. For loans in excess of $350,000, the SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount. If business fixed assets do not “fully secure” the loan the lender may include trading assets (using 10% of current book value for the calculation), and must take available equity in the personal real estate (residential and investment) of the principals as collateral. |
| Credit decision | By the SBA. Qualified lenders may be granted delegated authority (PLP) to make credit decisions without SBA review. |
Contacts
Tim Jeffcoat
U.S. Small Business Administration
District Director
Phone: 713 773 6518
Timothy.Jeffcoat@sba.gov
https://www.sba.gov/offices/district/tx/houston
