Basic SBA Loan Requirements for the 7(a) Loan
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.
- Gambling
- Mining
- 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.
