HAB eBanking

Business Loans Program 7(a)

The SBA 7(a) is designed to serve small and growing businesses obtain financing when they might not be eligible for business loans through conventional lending programs. The SBA provides programs that support small businesses at every stage of growth.  SBA is a US Government Program that guaranties lenders to make qualified loans and administer them. Use an SBA 7(a) Loan to purchase real estate, refinance fixed assets, acquire equipment, acquisition or expansion of business, access working capital, improve cash flow, and more.

Amounts
  • Maximum Loan Amount—$5 million
  • Maximum SBA Guaranty—$3.75 million
  • 85% SBA Guaranty on loans up to $150,000 and 75% SBA Guaranty on loans greater than $150,000
Uses
  • Purchase real estate
  • Acquire equipment, machinery, furniture, fixtures, supplies, or materials
  • Refinance existing business indebtedness
  • Short-term working capital needs
  • Acquire a business
  • Expand business
Rates
  • Prime plus 2-1/4% for maturities under 7 years*
  • Prime plus 2-3/4% for maturities of 7 years or longer*
Loan Terms
  • Working Capital - up to 7 years
  • Equipment - up to 10 years (or useful life)
  • Real Estate - up to 25 years
SBA Fees
  • 2.00% up to $150,000
  • 3.00% from $150,001 - $700,000
  • 3.50% from $700,001 - $1,000,000
  • 3.75% for SBA guaranteed amounts > $1,000,000

*SBA publishes updated 7(a) loan rates monthly.
*Others fees may apply given the specific details of the transactions, use of funds, loan structure, collateral, etc.