Glossary

SBA 7(a) Loan

In one sentence

The SBA's flagship guaranteed loan program, financing a range of small business needs including owner-occupied real estate, with an SBA guarantee to the lender.

The longer version

The 7(a) program guarantees a portion of a lender's loan to a small business, reducing the lender's risk. Proceeds can fund real estate, working capital, equipment, and acquisitions, making it broader than the real-estate-focused 504.

7(a) loans carry SBA documentation and eligibility requirements that layer onto a standard closing, and the guarantee depends on following the SBA's rules precisely, which puts a premium on a complete, compliant file.

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