02/07/2023
The 7(a) Loan Program || SBA’s most common loan program
Here's some financial help for small businesses with special requirements from the Small Business Administration. The maximum loan amount for a 7(a) loan is $5 million. Loan repayment terms vary according to several factors. Most 7(a) term loans are repaid with monthly payments of principal and interest. Payments stay the same for fixed-rate loans because the interest rate is constant. For variable rate loans, the lender can require a different payment amount when the interest rate changes.
To be eligible for 7(a) loan assistance, businesses must:
-Operate for profit
-Be considered a small business, as defined by SBA
-Be engaged in, or propose to do business in, the United States or its possessions
-Have reasonable invested equity
-Use alternative financial resources, including personal assets, before seeking financial assistance.
-Be able to demonstrate a need for a loan
-Use the funds for a sound business purpose
-Not be delinquent on any existing debt obligations to the U.S. government
You will need the appropriate forms as well: Borrower information form, personal financial statements, business financial statements, profit and loss statement (past 180 days), projected financial statements, ownership and affiliations, business license or certificate, personal & business income tax returns, personal resumes', business overview and history, along with your current lease of your operations.
It's safe to say after the amount of fraud with previous PPP loans issued, the SBA isn't screwing around making sure small business owners are actually qualified to receive this loan. For more information visit the SBA website link in our comment section or ask us how we can assist in the process.
-The FDMA Team