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Apply for a SBA (7a) Loan
Is the loan amount you are seeking for your small business more or less than $200,000?
At this time Grasshopper is not accepting applications for loans less than $200,000
Check out our partner that matches your funding amount below:
- Fundera has helped 75,000 + small business owners secure funding
- Loan amounts from $1K – $2M
- Access to over 25 lenders
- Funding as fast as same day
- Get approved and funded as soon as same day
- Wide range of financing options to choose from
- Loan amounts from $10k – $3M
- Applying won’t impact your credit score
How to Use the SBA 7(a) Calculator
Using the calculator is simple. Follow these three quick steps to get a complete financial breakdown of your potential SBA 7(a) loan.
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Step 1: Input Your Loan Details
- Loan Amount: The total dollar amount you plan to borrow.
- Interest Rate (%): Your estimated annual interest rate. SBA 7(a) loans are calculated based on the daily prime rate, and interest rates can be either fixed or variable. Please note: This is an estimated interest rate, actual rates will vary.
- Loan Term (Years): The number of years you plan to take to pay the loan back (e.g., 5, 10, or 25 years).
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Step 2: Review Estimated Costs
- Estimated Monthly Payment: The fixed dollar amount you will owe the lender each month.
- Total Interest Paid: The total cost of borrowing the money over the entire term.
- Total Cost of Loan (Principal + Interest): The final, full dollar amount the loan will cost your business.
SBA Eligibility (for the Business)How Do I Know if I Qualify?
Qualifying for an SBA 7(a) loan involves meeting both SBA eligibility requirements and the lender’s credit standards.
- For-Profit: Must be an operating for-profit business.
- Small Business Definition: Must meet the SBA’s definition of a “small business” based on industry-specific revenue thresholds or employee counts.
- Operate in U.S. or its Territories and Ownership requirements: Must conduct business in the United States or its possessions. 100% of ownership must be US Citizens or Legal Permanent Residents.
- Demonstrate Need: Must show that you need the loan and cannot obtain credit on reasonable terms from other sources.
- No Other Financing: Cannot be able to get funds from other lenders on reasonable terms without an SBA guarantee.
- Sound Business Purpose: Loan proceeds must be used for a sound business purpose.
Borrower Qualifications (You, the Buyer)How Do I Know if I Qualify?
Qualifying for an SBA 7(a) loan involves meeting both SBA eligibility requirements and the lender’s credit standards.
- Personal Credit Score: Lenders typically look for a strong personal credit score (often 650+).
- Industry Experience: Having relevant experience in the industry you’re acquiring is a major plus, but is not always necessary depending on other relevant experience.
- Management Skills: Demonstrated ability to manage a business.
- Financial Stability: Your personal financial history and capacity to repay the loan.
- Equity Injection: You’ll typically need to contribute at least 10% of the project cost (price plus other deal costs) in cash (or a combination of cash and seller debt on full standby). Startup projects typically require more cash injection from Borrowers (typically 20%+).
What Can I Use an SBA 7(a) Loan For?
The versatility of the 7(a) program is one of its biggest strengths. It can be used for a variety of business needs, including:
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Business Acquisition
Grow your business with confidence! Finance your expansion or acquire existing operations to reach a larger network with minimal cash out of pocket.
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Working Capital
Access funding to support your business needs, whether it be a special project or navigating your business' unique cash flow cycle.
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Debt Refinance
Consolidate business debt to improve cash flow with extended terms and competitive rates that unlock additional liquidity for your business.
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Commercial Real Estate
Purchase, construct, improve, or refinance a building for your business with a 25-year loan.
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Partner Buyout & Succession Planning
From changing business ownership to planning for retirement, the SBA(7a) loan can help protect your interests and execute your vision.
Want to Learn More About SBA 7(a)?
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Is Your Business Eligible for a Loan?
Running a business can get expensive. If you find yourself needing some additional funds, an SBA loan can be a great option for small business owners. We’ve highlighted some essential information about SBA loans, including how to get one for yourself.
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Business Loans vs. Lines of Credit
Sometimes when running a small business, you find yourself needing some extra funds. Learn about the differences between business loans and lines of credit here.
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How to Grow Your Business with SBA 7(a)
Learn how SBA 7(a) loans work, how they can benefit you, and how you can overcome some of the common obstacles and fears that come with them.
Ready to Apply?
Click below to learn more about our quick digital application process.
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