Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What Is The 7(a) Program?

April 26, 2017commercial mortgages investment properties mortgages program retail sba loans

0

Posted

What Is The 7(a) Program?

1 Answer

0

Posted

The 7(a) program is an umbrella covering a wide variety of loans. This loan can be used for a variety of purposes: Machinery and equipment purchases Real estate purchases Business purchase Inventory Debt Refinance Construction Working capital Franchise purchase The small 7(a) program has a guarantee of 85% on loans $150,000 or less. The large 7(a) program has a guarantee of 75% on loans more than $150,000 up to a maximum of $2million. There is no down payment required except for the real estate portion. There is a 30% equity injection requirement for start-up businesses. All loans are fully amortized with long term financing, no balloons and no prepayment fees except for 3 years on the 7(a) real estate. There are fees paid to the government on the guaranty portion and ALL interest amounts are negotiated with the lender subject to SBA regulations. What Is A 504 Real Estate Loan? The 504 Real Estate Loan Program allows a company to purchase its own building, construct or do a major renov