Maximum loan amount is $2 million dollars. SBA's maximum exposure is $1.5 million, or 75 percent. Loan proceeds can be used for working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets. 7(a) loans are only available on a guaranty basis, meaning that the lender structures their own loans by SBA's requirements and apply and receive a guaranty from SBA on a portion of this loan. The SBA does not fully guaranty 7(a) loans. The specific terms of SBA loans are negotiated between an applicant and the participating financial institution, subject to the requirements of SBA. |