SBA 7(a) Loan
The Small Business Administration's flagship guaranteed loan program. Used for working capital, equipment, real estate, partner buyouts, and acquisitions. The benchmark conventional structure for most growing operators.
Why it is the first thing to evaluate
For qualifying operators, SBA 7(a) is generally the lowest-cost, longest-amortization, most flexible structure available. It is the first product Veritas evaluates on most engagements.
Pricing is typically Prime plus a margin within program limits, with terms up to 10 years for working capital and acquisitions and 25 years when real estate is involved.
What it does not do
SBA 7(a) is not fast capital. Diligence and underwriting can take 45 to 90 days. It is also not the right answer for businesses that cannot demonstrate consistent cash flow and clean reporting.
For time-sensitive needs, the right play is often to use bridge capital with a defined SBA take-out, rather than abandoning the conventional option.
Related Entries