SBA Eligibility Guidelines

This is the SBA's primary lending program for business loans up to $2 million. It can be used for emerging businesses and to meet the varied short-term and long-term needs of existing small businesses. Under the 7a loan program, the SBA guarantees loans that banks make to small businesses that cannot obtain financing on a conventional basis.

Eligibility Information

• Must be a for-profit company
• Generally up to 100 employees for Wholesalers or 500 employees for Manufacturers
• Generally, $6 million maximum annual revenues for Retail or Service industries
• If for commercial real estate purposes, must be owner occupied
• Businesses established for religious teaching, private clubs, gambling, speculation, by non-residents, and some franchises are prohibited
• Loans may not be used for refinancing existing marginal debt, floor planning, distribution to owners, speculation, investment property, or payment of delinquent withholding and sales taxes

Financing Options

• Working capital, 7 year maximum
• Fixed asset loans (machinery, equipment), useful life up to a 10 year maximum
• Real estate loans, 25 years maximum
• Fully amortized term loans, no balloon notes or lines allowed.
• Can be used to finance changes of ownership

Collateral Requirements

• May have collateral shortfall
• Personal guarantee of each owner of 20% or more of the business is required (secured)

Benefits

• Longer terms depending upon the purpose of the loan
• As a Preferred Lender, LaSalle can rapidly process your loan request
• Loan request can still be approved with a collateral shortfall