SBA 7(a) Loan Program

Financial Assistance for Small Businesses

Starting a business?



SBA 7(a) Loan Program Highlights

  • Loans for startup and existing businesses
  • Loan Amounts up to $5,000,000
  • One loan can include multiple uses of proceeds
  • Financing of 70% to 90% of total project costs
  • No balloon payments
  • Non-real estate loan terms up to10 years with no prepayment penalties
  • Real estate loan terms up to 25 years with declining prepayment penalties first 3 years
  • Interest rates are adjustable based on Wall Street Prime (Maximum is WSP +2.75%)

Use of Proceeds

One loan can include multiple uses of proceeds:

  • Purchase and construction or renovation of commercial real estate
  • Construction contingency
  • Leasehold improvement
  • Purchase of Furniture, Fixtures, Equipment, and Inventory
  • Interim interest
  • Working Capital
  • Business Acquisition

Basic Requirements of Loan Applicants

  • Direct industry experience or business ownership and management experience
  • Cash Injection – source documented with copies of bank statements and supported by income reported on prior tax returns for 3 years
  • Personal Liquidity – sufficient amount of cash remaining after required cash injection to cover personal living expenses depending on other outside sources of income
  • Personal Guarantees of all 20% owners
  • Collateral – All assets being financed are used as collateral. However, the SBA requires additional collateral if available to the business and principals to be pledged in order for the loan to be “fully secured” if possible  (Homesteads and Retirement/investment accounts are excluded)
  • Existing Businesses and Affiliate Businesses must show fixed debt coverage of 1.25 or greater for two years and interim (Calculated on adjusted NOI)

Documents Required for Loan Approval

  • Loan Application
  • Business Plan (Narrative describing market, competition, business model, management, revenue & expense assumptions, site information and demographics, etc)
  • Projections for income and expenses (month by month)
  • Project Cost Estimate
  • Guarantor Information – 3 years of tax returns complete with all schedules, personal financial statement, personal profile & resume, personal cash flow statement, statement of source of cash injection with copies of bank statements, copy of front and back of drivers license, SBA Form 1919, SBA Form 4506-T for verification of tax returns.
  • Letter of Intent for lease space or business acquisition
  • Earnest Money contract for purchase of real estate
  • Existing Business and Affiliate Business Information – 3 years of tax returns complete with all schedules, interim financial statements, schedule of fixed debt

We're Here To Help!


P.O. Box 5428
Katy, TX 77491


M-F: 8am - 5pm
S-S: Closed

Call Us

(713) 201-5610