SBA 7(a) Program
The SBA 7(a) Loan Guaranty Program is one of the SBA’s primary lending programs. Through participating lenders like Midtown Bank, the 7(a) program authorizes the SBA to provide business loans to small businesses that are unable to secure financing through normal lending channels. An SBA 7(a) loan provided through Midtown Bank may be used to establish a new business or to assist in the operation, acquisition or expansion of an existing business.
What are primary advantages to businesses?
- A fully amortizing loan of up to 25 years, with no calls or balloon payments
- Higher Loan to Values than conventional loans
- Below market interest rates
- For-profit businesses
- Small to medium sized businesses
- Owner-users that occupy a minimum of 51% of the usable square footage of an existing building or 60% of newly constructed space acquired with loan proceeds
Allowable uses of loan proceeds:
- Acquisition of land or building, construction, expansion or conversion of existing facilities
- Acquisition of equipment, machinery, furniture, fixtures, supplies or materials
- For long term working capital including the payment of accounts payable and/or for the purchase of inventory
- To refinance or consolidate existing business indebtedness
- For short term working capital needs
- To purchase an existing business
Note: The maximum amount of an SBA 7(a) loan is $5,000,000.
Approved to offer SBA loan products under SBA’s Preferred Lender program.