The 7(a) Lending Model
The SBA 7(a) Loan Program is your gateway to secure and reliable financing. With this guaranteed loan program, lending institutions provide the loan, while the Small Business Administration (SBA) steps in to cover their guaranteed portion in the event of default. Whether you need funding for expansion, equipment, working capital, or any other financing needs, the SBA 7(a) Loan Program is designed to support the growth of your for-profit operating business.
What Is The SBA?
The U.S. Small Business Administration (SBA) provides a comprehensive definition of what qualifies as a small business in terms of the average number of employees over the past 12 months and average annual receipts over the past three years. For most industries, businesses must meet the following criteria to be considered small businesses under SBA guidelines:
- Be independently owned and operated;
- Have a significant amount of operating capital of its own;
- Not be dominant in its field of operation;
- Not exceeding 500 employees;
- Have annual receipts of no more than $7.5 million.