SBA 7a Loan Guarantee Program

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SBA 7(a) Loan Guarantee Program
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SBA 7(a) Loans Guarantee Program

• The 7(a) Guarantee Program provides loans to
  small businesses unable to secure financing with
  reasonable terms through normal lending.
• SBA guarantees a certain percentage of the loan
  from a private lender.
• Under 150,000 - 75
• Over 150,000 - 80

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Who is Eligible?

• Not Real Estate Investment or Speculative
  Activities, Lending Activities, Pyramid Sales
  Plans, Illegal Activities, Gambling, and
  Non-Profits.
• Size of Business http//www.sba.gov/size/sizetabl
  e.html
• Approved by SBA, based on repayment ability from
  cash flow, good character, management capability
  and owners equity.

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Terms of the Loan

• The private lender sets the rate on the loan.
• SBA maximum rates range from Prime 2.25 to
  Prime 4.75. (based on Principle and Maturity).
• Service charge between 2.5 and 4, which is
  split between private lender and SBA.

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For More Information

• http//www.sba.gov/financing/fr7aloan.html will
  provide you with more information about 7(a)
  loans and whether they are right for you.