Tidy storefronts on a cheery Midwest main street. Interested in a loan for your business? Learn more about Wasatch Peaks Credit Union secured business loans.

Small Business (SBA) 7 (a) Loans

The SBA 7 (a) is an extremely popular, flexible, and versatile small business loan. It’s commonly used for funding long-term needs like commercial real estate projects, business expansion, leasehold improvements for new construction or remodeling, inventory and equipment, working capital, and debt refinancing.

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Benefits of the SBA 7 (a) Loan

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Competitive Rates

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High Loan Limits-up to $5 Million

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Flexible Repayment Terms

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Low Down Payment Requirement

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Most Versatile SBA Loan

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More Accessible Than Other Business Loans

How to Use the SBA 7 (a) Loan

The SBA 7 (a) is the most popular SBA loan because it’s incredibly versatile and accessible to most business owners. Some common uses for the 7(a) loan include:

  • Funding long- and short-term working capital
  • Purchasing equipment, machinery, furniture, fixtures, supplies, or materials
  • Purchasing real estate, including land and buildings
  • Constructing a new building or renovating an existing building
  • Establishing a new business or assisting in the acquisition, operation, or expansion of an existing business
  • Revolving funds based on the value of existing inventory and receivables

SBA 7 (a) Loan Eligibility

As with all loans, there are eligibility requirements. Businesses must demonstrate their ability to operate for a profit and cover their day-to-day operating expenses. The business owner(s) must also show that they have invested a significant amount of their own capital in the business and have good FICO® scores and payment history.

The SBA defines additional the eligibility criteria, including the following:

  • Be a for-profit business located in the U.S.
  • Be able to demonstrate a need for a loan and use the funds for a sound business purpose.
  • Not be delinquent on any existing debt obligations to the U.S. government

According to the SBA, some businesses may not qualify for a 7(a) loan. The SBA discusses ineligible businesses here.

★★★★★

"One of the biggest challenges for a small business is getting capital. But when we found Wasatch Peaks, it was a game-changer for us. They’re always there to give us help and lend us capital so we can get the equipment we need."

- Casey Pratt, Club Rec Owner

 

SBA 7 (a) Loan FAQs

It’s natural to have a few questions, and we want to help you find the answers. Here are some frequently asked questions for your reference:

  • Who is eligible for an SBA 7 (a) Loan?

    SBA loans are approved by the lender using SBA eligibility criteria requirements (covered above) as some of the many factors going into the consideration process. Our business loan officers also look at applicants’ credit scores using the FICO® Small Business Scoring Service® product (SBSS) and the businesses’ ability to generate profit and pay their operating expenses.

    To determine whether you qualify for an SBA 7 (a) loan, you can reference this SBA 7 (a) eligibility worksheet.

  • How long are the loan terms?

    The SBA offers different term loans. For loans used to buy real estate, the maximum loan term is 25 years. Other purchases, like machinery or renovations to an existing building, have a term maximum of 10 years that can sometimes be extended to 15-years.

  • What sort of collateral does a business have to have?

    SBA 7(a) Small Loans of $25,000 or less do not require collateral. For loans in excess of $350,000, the SBA requires collateral that is determined based on the capital and assets available to the business.

  • What do I need to apply for the SBA 7 (a) loan?

    As you’d expect, you need to present thorough records and documents to demonstrate the soundness of your business. To help you get started, here’s an SBA 7 (a) loan application checklist. If you have additional questions after reviewing the checklist, we welcome you to contact our Business Development Department at 801-452-7885 or email them at business@wasatchpeaks.com.

Wasatch Peaks CU SBA 7 (a) Loans

At Wasatch Peaks CU, our SBA loans come with our long-standing commitment to local businesses in the Davis, Morgan, and Weber counties. Our financial advisors are experienced in a diverse range of businesses and industries and are ready to help your business secure funding.

For more information, contact our Business Development Department at 801-452-7885 or email them at business@wasatchpeaks.com.

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