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SBA7(a)

SBA 7(a) Loan Program Government Stimulus


The SBA 7(a) program is considered the SBA's flagship loan program, each year helping more than 60,000 small businesses obtain funding. The program partially guarantees loans up to $5 million made by credit unions or other direct lenders to eligible small businesses across the country.

The U.S. Small Business Administration (SBA) loan programs were created to promote economic growth by encouraging lenders to partner with eligible small businesses that may be struggling to secure financing on reasonable terms.

Government Stimulus: Request must fully fund by September 30, 2021
 

FY2021 Updates to the SBA 7(a) Loan Program


FY2020 Terms:

Principal & Interest Payments
  • Required to be made by borrower
Program Funding Allocations
  • $30 billion in 7(a) appropriations
Guaranteed Percentage
  • 85% guarantee on 7(a) loans of $150K or less
  • 75 % guarantee on 7(a) loans in excess of $150K
Guarantee Fees
  • 3% of the guaranteed amount on loans up to $700K
  • 3.5% of the guaranteed amount on loans $700K - $1,000K
  • 3.75% of the guaranteed amount over $1,000K 

FY2021 Terms:

Principal & Interest Payments
  • Three-months of covered P&I payments by SBA
Program Funding Allocations
  • $75 billion in 7(a) appropriations
Guaranteed Percentage
  • 90% guarantee on all 7(a) loans
Guarantee Fees
  • Waiver of upfront guarantee fee for all 7(a) loans
  • Waiver of ongoing guarantee fee for all 7(a) loans

Tim Timmer

VP Business Lending 
TTimmer@obee.com
Office: 360.528.5314
E-MAIL Tim For SBA 7(a)

60-Day "Handshake to Close"

O Bee will keep your loan on track

  1. Prequalification: 2 Days
  2. Document Collection: 5 Days
  3. Initial Review: 3 Days
  4. Lender Response: 3 Days 
  5. Complete Memo: 5 Days
  6. Packaging & Submission: 15 Days
  7. SBA Approval: 15 Days
  8. Closing: 10 Days

Eligible Projects

  • Business acquisitions, expansions, and start-ups
  • Commercial Real Estate Purchasing (rent replacements)
  • Refinance of existing debt
  • Inventory, equipment, and franchise purchases
  • Working capital

Benefits For Borrowers

  • Loan amounts up to $5MM
  • 10- and 25-year terms, fully amortized
  • Lower down payment requirements: no balloon costs
  • Flexible use of proceeds
  • Pure credit enhancement and very flexible

We Lend, You Succeed

Learn More: TTimmer@obee.com | Office: 360.528.5314 | O Bee Business Services