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PMF Partners Insights

SBA 7(a) Loan

DK Don Konipol 1 min read

Originally published in 2021. Specific interest rates, loan sizes, and program details have likely changed since. For current terms, please contact PMF Partners.

The Small Business Administration’s flagship loan, the 7(a) loan, can be used to purchase land or buildings, construct new property, or renovate existing property, provided the real estate will be owner-occupied. Through this program, you can borrow up to $5 million through an SBA-affiliated lender. The maximum allowed interest rates for the program are based on the WSJ Prime Rate plus a margin of a few percentage points. Interest rates can be fixed, variable or a combination of the two. Repayment terms for 7(a) loans used for real estate can go up to 25 years. These loans are fully amortized, meaning each monthly payment will be the same until the loan is paid off.

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