Commercial / SBA Loan

SBA 7(a) Loans

The SBA's most common loan program offering up to $5 million for working capital, equipment, real estate, acquisitions, partner buyouts, and debt refinancing.

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Is This Loan Right for You?

An SBA 7(a) loan is right for you if you are a small business owner who needs up to $5 million for working capital, equipment, commercial real estate, business acquisition, or debt refinancing. SBA-backed guarantees mean lower down payments and longer terms than conventional business loans. Under SBA Standard Operating Procedure 50 10, the program provides government-guaranteed financing with down payments as low as 10% and repayment terms up to 25 years for real estate or 10 years for working capital. You will need a minimum credit score of 680, and your business must meet SBA size standards, generally fewer than 500 employees or under $7.5 million in revenue. A guarantee fee of 0 to 3.75% applies based on loan amount and maturity. Compared to conventional commercial loans requiring 20 to 30% down with shorter terms, SBA 7(a) reduces upfront costs and monthly payments significantly. Choose SBA 7(a) for versatile capital when your business demonstrates sufficient cash flow to repay.

Requirements

What Are the SBA 7(a) Requirements?

Min Credit Score

680+

Min Down Payment

10%

Max LTV

90%

Max DTI

N/A (business cash flow analysis used)

Loan Limits

Up to $5,000,000 (per SBA Standard Operating Procedure 50 10)

PMI / MIP

SBA guarantee fee: 0-3.75% depending on loan amount and maturity

Occupancy

Business use

Features

Key Features

  • Loan amounts up to $5 million
  • Working capital, equipment, and real estate financing
  • Business acquisitions and partner buyouts
  • Debt refinancing options
  • Longer repayment terms than conventional business loans
Process

How It Works

1

Pre-Qualification

We review your business financials, credit profile, and loan purpose to determine SBA eligibility and identify the right 7(a) program. We provide a preliminary term sheet outlining expected terms.

2

Application & Documentation

Submit SBA Form 1919, business tax returns (3 years), personal tax returns, business financial statements, a business plan, and collateral documentation.

3

SBA Underwriting & Approval

The lender underwrites the loan and submits to the SBA for guaranty approval. The SBA reviews and issues an authorization letter. This process typically takes 30-60 days.

4

Closing & Funding

Complete loan closing with SBA-required documentation, fund the SBA guarantee fee, and receive your capital. Funds are typically available within a few days of closing.

Estimate Your Payment

20%

Results

Principal & Interest$2,128.97
Property Tax$416.67
Insurance$150
Total Monthly Payment$2,695.64

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.

Pros & Cons

What Are the Pros and Cons of SBA 7(a)?

Advantages

  • Lower down payments than conventional commercial loans (as low as 10%)
  • Longer repayment terms (up to 25 years for real estate) reduce monthly payments
  • SBA guaranty makes approval easier for businesses that might not qualify conventionally
  • Versatile use of funds: working capital, equipment, real estate, acquisitions, and refinancing

Considerations

  • Extensive documentation and longer approval timeline (30-60 days typical)
  • SBA guarantee fee adds to the cost (0-3.75% of guaranteed portion)
  • Personal guarantee and collateral typically required
FAQ

Frequently Asked Questions

SBA 7(a) loans are the most versatile SBA program. They can be used for working capital, purchasing equipment or inventory, buying or constructing commercial real estate, acquiring a business, buying out a partner, or refinancing existing business debt.
The process typically takes 30-60 days from complete application to funding. SBA Preferred Lenders can process loans faster since they have delegated authority to approve SBA loans without submitting to the SBA for review.
The SBA requires lenders to collateralize loans to the maximum extent possible, but it will not decline a loan solely for lack of collateral. For loans over $500,000, the SBA requires available collateral to be pledged. Personal guarantees from owners with 20%+ ownership are always required.
SBA 7(a) rates are typically based on the Prime Rate plus a spread of 2.25-2.75% depending on the loan amount and term. Rates can be fixed or variable. As of 2024, total rates generally range from 10-13%.
Yes, but startups face more scrutiny. You will need a strong business plan, relevant industry experience, good personal credit, and sufficient personal investment in the business. SBA Microloans may be a better starting point for brand-new businesses.
SBA size standards determine whether a business qualifies as small. Standards vary by industry and are based on either number of employees or annual revenue. Most small businesses with fewer than 500 employees or under $7.5 million in average annual revenue qualify.
Local Expertise

Getting a SBA 7(a) Loan in the San Gabriel Valley

NetCORE Lending™ is headquartered in Diamond Bar and has been helping borrowers across the San Gabriel Valley secure sba 7(a) financing since 2015. We serve homebuyers and homeowners in Pomona, Walnut, Rowland Heights, West Covina, Chino Hills, Covina, La Verne, Glendora, San Dimas, Hacienda Heights, and City of Industry — as well as borrowers throughout California.

As a local mortgage broker, we understand the San Gabriel Valley real estate market — from the higher-value properties in Chino Hills and Diamond Bar to the more affordable options in Pomona and West Covina. Our team provides bilingual service in English and Vietnamese and shops 100+ wholesale lenders to find you the lowest available rate on your sba 7(a) loan.

Call (714) 399-6361 to discuss sba 7(a) options with a local loan advisor, or get pre-qualified online in 2 minutes.

Related

Also Consider

Explore other loan products that might be a good fit for your needs.

SBA 504

Long-term, fixed-rate financing for major fixed assets like commercial real estate, heavy equipment, and construction or renovation projects.

SBA Express

Faster SBA financing with loan amounts up to $500,000 and expedited turnaround. Available as term loans or revolving lines of credit for businesses needing quick access to capital.

SBA Microloan

Small loans up to $50,000 for startups and small businesses. Ideal for working capital, inventory, supplies, and equipment. Often paired with business training and technical assistance.

Ready to Get Started?

Apply online in minutes or call us to speak with a loan advisor about your SBA 7(a) options.

Apply for an SBA 7(a) Loan(714) 399-6361

Official Sources

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.

NetCORE Lending™ helps connect you with SBA-approved lenders. The U.S. Small Business Administration (SBA) does not directly lend money to small businesses. SBA loans are provided by participating lenders with a government guarantee that reduces the lender's risk.

Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: June 2026