SBA Standard 7(a) Loan and SBA 7(a) Small Loan
SBA 7(a) loans are handed out to those who meet the SBA loan requirements for existing business. The disbursement can reach up to a maximum of $5 million and is provided through the SBA 7(a) loan program, which is one of the most popular types of loans because the amount acquired can be used for a variety of business purposes. There are different types of SBA 7(a) loans classified according to the terms and conditions followed. Below are the Standard SBA 7(a) loan and the SBA 7(a) Small Loan explained.
Standard 7(a) Loan
This is the traditional SBA 7(a) loan, which can reach up to $5 million. Aside from that, you can use the funds acquired for different purposes including the expansion of business and contributing to working capital. The SBA usually approves the loan in 5 to 10 working days. Note that there is no requirement of collaterals for amounts less than $25,000.
SBA 7(a) Small Loan
These are similar to the Standard 7(a) loans, but the maximum amount allowed is $350,000. For this type of loans, the SBA prescreens the business financials, business credit, and personal credit. In case you pass the prescreen, the lender fastracks the application. If you do not pass the prescreen, you are subject to the more difficult underwriting process of the standard 7(a) program.