What is an SBA 7(a) loan?

An SBA 7(a) loan is a small business loan backed by the U.S. Small Business Administration (SBA), a federal agency created to support and grow small businesses. SBA 7(a) loans are provided by lenders like Bankwell, with the SBA guaranteeing a portion of the loan. That guarantee allows us to offer more flexible terms than many conventional business loans, including longer repayment periods and lower down payment options.

SBA 7(a) requirements

Because every business is different, eligibility and structure can vary. At Bankwell, you’ll work directly with a dedicated SBA team member who will determine if the 7(a) program is right for you. To be eligible the business must meet the following SBA requirements:

• Be organized, located and primarily operating in the United States or its territories  
• 100% of all direct and/or indirect owners of a small business Applicant be U.S. Citizens or U.S. Nationals who have their Principal Residence in the United States, its territories, or possessions.
• Operating business organized for profit
• Meet the SBA’s size standard - see SBA.gov for details here
• Not be an ineligible business - see SBA.gov for details here

What you’ll need to apply for an SBA loan

• Three most recent years business tax returns, if applicable
• Business interim financial statements, if applicable
• Business debt schedule, if applicable – a sample is available here for download
• Three most recent years personal tax returns
• Personal Financial Statement - a sample is available at SBA.gov - click here