Basic SBA Loan Requirements for the 7(a) Loan
Businesses of all ranges can acquire approval for SBA 7(a) loans. The Small Business Administration has released a list of those industries that are excluded, and these comprise the following.
- Life insurance
- Oil wildcatting
- Bail bond
- Real estate development
- Mortgage servicing
- Primarily political and lobbying activities
- Pawn or private clubs
- Religious teaching
If a business does not fall in one of the above industries, you should make sure that it meets the following requirements. The following are needed to qualify for a loan of $30,000 to $350,000 SBA 7(a) Debt Refinance or Working Capital.
- Should have spent at least 2 years in the business.
- The owner should have a personal credit of over 650.
- The business should be based out of the US and should have a US citizen or Lawful Permanent Resident with a minimum of 21 years of age as the owner.
- The business should have no outstanding tax liens.
- There should be no foreclosures or bankruptcies in the previous 3 years.
In case you apply for a loan of $500,000 to $5,000,000 SBA 7(a) Commercial Real Estate Loan, the following are also needed.
- The personal credit score of the owner should be more than 675.
- The major portion of the real estate should be occupied by the owner.
- Demonstrated 3 years’ history of financial data and tax returns.