SBA 7(a) Loans — The Most Versatile SBA Program

The SBA 7(a) loan program is the Small Business Administration's most popular and flexible lending program. Whether you need working capital, want to purchase equipment, acquire a business, or buy commercial real estate, the 7(a) program can do it all — with terms up to 25 years and amounts up to $5 million.

What You Can Use an SBA 7(a) Loan For

The 7(a) is the Swiss Army knife of SBA loans. Unlike the 504 program which is limited to fixed assets, the 7(a) can be used for nearly any legitimate business purpose:

Fixed vs. Variable Rate: What You Need to Know

SBA 7(a) loans are commonly issued at variable rates tied to the Wall Street Journal Prime Rate plus a spread of 1.5% to 2.75%. In a stable or declining rate environment, variable rates can work well. However, when rates rise — as they have since 2022 — businesses with variable-rate SBA loans can see their monthly payments increase significantly.

Fixed-rate options are available and increasingly popular. If you already have a variable-rate SBA 7(a) loan, 3A Lending can analyze your current terms and show you exactly what a fixed-rate refinance could save you each month.