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.

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