The 7(a) program is the SBA’s general small business loan program and one of the most popular loan options.
There are several types of 7(a) loans, including standard, small, and express loans, as well as loans for export and international trade businesses. These loans can be used for a variety of purposes, including buying inventory, equipment, working capital, and refinancing other business loans.
The loan amount and term will depend on the type of 7(a) loan and how you plan to use the proceeds. The SBA will guarantee 50% to 90% of the loan, depending on the type of 7(a) loan.
The SBA uses the FICO® Small Business Scoring Service℠ (SBSS) to score and prescreen businesses that apply for an SBA 7(a) loan of $350,000 or less – an SBA 7(a) Small loan.
Typically, you’ll see minimum credit score requirements of at least 640 to 680.