SBA's main business loan program. A lender makes the loan and SBA guarantees part of it: up to 85 percent of $150,000 or less and 75 percent of more, on loans up to $5,000,000.
A participating lender, which can be a bank, a credit union or a non-bank lender, makes a 7(a) loan to a small business and SBA guarantees part of it. The most for one loan is $5,000,000, and SBA’s share is capped at $3,750,000 for a borrower and its affiliates.
Terms run up to 10 years for working capital, 10 for equipment (15 when the IRS asset class supports it) and 25 for real estate. The lender sets the rate within an SBA cap. A variable rate may not exceed the base rate plus 6.5 points on a loan of $50,000 or less, 6 points up to $250,000, 4.5 points up to $350,000 and 3 points above.
Uses include working capital, equipment, real estate, a business purchase and refinancing. The borrower must be eligible: small, a business that is not on SBA’s ineligible list, and unable to get the credit elsewhere on reasonable terms. Example: a $400,000 loan with a 75 percent guaranty has a guaranteed portion of $300,000.
How it shows up in the data here
In the SBA 7(a) and 504 FOIA file, Program marks the loan, GrossApproval is the loan amount and SBAGuaranteedApproval is the amount of SBA's guaranty. This site counts 7(a) loans made over 36 months, net of cancelled approvals, on lender pages and in the 7(a) rankings. The file lists approvals, not declines, and it cannot show how most loans are performing.
Go further
- SBA 7(a) lenders by loans made: The 36-month count for every lender, with the method printed above the table.
- SBA 7(a) payment calculator
- SBA 7(a) payment calculator: Monthly payment with the FY2027 upfront guaranty fee, with the fee paid in cash or added to the loan.
- How to read SBA 7(a) and 504 loan data: The SBA publishes the 7(a) and 504 loans it guarantees, lender by lender, every quarter. It is the best public record of who lends to small businesses, and it is easy to misread.
- SBA 7(a) or 504: which fits your loan: Both are SBA loans, and they work differently. The choice usually turns on what you are buying and how much cash you can put in.
- SBA 7(a) loan package checklist: A 7(a) package is the bank's usual file plus SBA's own list. Know which items SBA requires and you can have them ready before the first call.
Related terms
- SBA 7(a) Small loan: A 7(a) term loan of $350,000 or less. The lender may use its own forms and credit memo for much of the file, and the debt service coverage floor is 1.10 to 1.
- SBA Express loan: A 7(a) loan of $500,000 or less that only a lender with SBA Express authority can make, on its own credit decision, with a 50 percent SBA guaranty.
- SBA 504 loan: A fixed-asset financing in which a bank lends 50 percent or more, a certified development company funds up to 40 percent through an SBA debenture, and the borrower puts in at least 10 percent.
- SBA guaranty percentage: The share of a 7(a) loan that SBA guarantees to the lender: up to 85 percent of a loan of $150,000 or less, up to 75 percent of a larger loan, and 50 percent on SBA Express.
- Preferred Lenders Program (PLP): A status SBA gives some 7(a) lenders to decide eligibility and credit on their own authority, with SBA reviewing a loan only at purchase or oversight.
Sources
Plain definitions for orientation, not legal, tax or credit advice. A lender's own policy decides what it will do.