7(a) SBA Loans

The SBA 7(a) loan is a valuable credit enhancement tool that allows the lender to receive additonal security in making the loan in the form of a SBA guaranty.  The most common uses of a SBA 7(a) loan are for inventory, equipment, or working capital.

7(a) loans are only available on a guaranty basis. This means they are provided by lenders who choose to structure their own loans by SBA's requirements and who apply and receive a guaranty from the SBA on a portion of this loan. The SBA does not fully guaranty 7(a) loans. The lender and SBA share the risk that a borrower will not be able to repay the loan in full.

A key concept of the 7(a) guaranty loan program is that the loan actually comes from a commercial lender, but is guaranteed by the government.  Therefore, it is paramount that all applicants positively approach the lender for a loan, and understand the lender's criteria and requirements as well as those of the SBA. In order to obtain positive consideration for an SBA guaranteed loan, the applicant must be both eligible and creditworthy.

For more detailed information on the SBA 7(a) program, visit the SBA website.

For more information on how WBD can assist you and your customers with 7(A) loan packaging, click on the Lender Services page.