SBA 7(a) Loan

All 7(a) loan applicants must meet the program's eligibility requirements, which are designed to be as broad as possible.

SBA 7(a) loans are provided by authorized commercial lenders like CapitalSource Small Business Lending, who participate in the program. CapitalSource Small Business Lending is a Preferred SBA 7 (a) Lender which gives us the authority to make credit decisions on behalf of the U.S. government and enables us to process loans more quickly and efficiently than most other SBA lenders. We control the whole process.

Loan Details

Loan Purpose

• Commercial real estate purchase, refinance, and construction, including working capital and other business assets.

Loan Amount

• $250,000 to $5,000,000.

Time to Close

• Closing within 45–60 days of signed commitment letter.

Loan To Value

• Up to 125% (up to 125% on general purpose real estate and up to 130% for medical office condominiums or office buildings.)

Interest Rate

• Competitive rates.

Term

• Up to 25 years based on the loan purpose. No balloons or calls—fully amortizing over the life of the loan.

Prepayment Penalty

• Declining penalty over 3 years (5%, 3%, 1%).

Fees

• No loan origination fee.
• One-time SBA loan guarantee fee based on loan size.
• Good faith deposit to be used for loan closing costs.

Collateral

• First lien on assets being financed.

Recourse

• Personal guarantees for all individuals owning 20% or more. Corporate guarantees of affiliated companies may be required.

Debt Service Requirements

• Projected debt service coverage of 1.25:1 times.

Industries

• All-for profit businesses that meet SBA eligibility requirements.

Eligibility

• All 7(a) loan applicants must meet the program's eligibility requirements, which are designed to be as broad as possible.