What is an SBA Loan?
An SBA loan is a small business financing option backed by the U.S. Small Business Administration (SBA), designed to make funding more accessible by reducing risk for lenders. These loans are highly sought after for their favorable terms and flexibility, making them ideal for both business expansion and long-term investment.
At Phoenix, we offer the 7(a) Loan, which supports inventory and equipment purchases, working capital, or refinancing debt.
Depending on how you use the funds, loan amounts range from $200,000 to $5 million, with repayment terms between 5 and 25 years.
Interest rates generally fall between the mid-3% and low-8% range, depending on market conditions, credit profile, and loan structure.
From start to finish, our white-glove approach, keeps your SBA loan process smooth, efficient, and worry-free.
How Can I Use an SBA 7(a) Loan?
Purchase or Construct a Building
Secure funding for land acquisition or construction or purchase an existing property.
Purchase an Existing Business
Kick-start growth, expand your capabilities, or extend your reach into new markets by acquiring an established business.
Expand or Modernize Facilities
Expand your space, upgrade technology, or modernize existing facilities with an SBA loan.
Buy Machinery, Equipment, & Fixtures
Move forward with financing to acquire new assets, upgrade outdated ones, or replace those that are no longer functional.
Finance a Startup
Give your idea a strong foundation with a startup loan for real estate, equipment, working capital, and more.
Finance Leasehold Improvements
Renovate your leased facility to create the space and functionality needed for successful operations.
We’re not a faceless institution. Our team values your story and your vision.
Understanding the 7(a) loan
The SBA 7(a) loan is the most widely used financing option offered through the U.S. Small Business Administration. Designed to meet a variety of business needs, it provides flexibility, long repayment terms, and competitive interest rates, making it one of the most accessible and attractive lending options for small business owners.
Loan Amounts & Terms
- Maximum Loan Amount: $5 million
- Repayment Terms:
- Up to 10 years for working capital or equipment
- Up to 25 years for commercial real estate
The longer repayment terms and lower monthly payments make 7(a) loans one of the most business-friendly options on the market.
Fees
The SBA charges a one-time guarantee fee based on the loan amount. Although the lender typically pays this, the borrower may pay as part of the loan cost. Current fees are:
- 1.7% on loans up to $150,000
- 2.25% on loans between $150,000 and $700,000
- 2.625% on loans over $700,000
For loans above $1.333 million, the fee increases incrementally. We can calculate your exact cost based on your loan size and structure.
Additional lender-specific fees, such as origination or packaging fees, may also apply, but even with the fees, your savings still outweigh any other higher-interest options.
Interest Rates
SBA 7(a) loans may carry a fixed or variable interest rate, depending on the lender. The SBA limits how much lenders can charge by capping the interest rate spread above the base (Prime Rate), helping keep borrowing affordable.
Typical maximum spreads:
- 2.25% above Prime for loans over $50,000 and repayment terms under 7 years
- 2.75% above Prime for loans over $50,000 with repayment terms longer than 7 years
Your final rate will depend on your credit history, the loan amount, and the length of the term.
Our lenders bring unmatched know-how in SBA financing and we tailor every loan to match your specific needs.
What Documents Will I Need to Apply?
To apply for a 7(a) SBA loan, you’ll need to gather some important financial and business documents ahead of time. Having everything organized before you start the application will help speed up the process and reduce delays.
Before you begin, it may be wise to consult with your accountant or a tax advisor to ensure your paperwork is accurate and complete.
Commonly Required Documents
Personal & Business Tax Returns
You’ll need to provide at least three years of federal tax returns for both your business and your personal finances.
Personal Financial Statement
If you own 20% or more of the business, you’ll need to provide a snapshot of your personal assets, liabilities, and net worth.
Profit & Loss Statement
Also known as an income statement, this document shows your business’s revenue, expenses, and overall performance over a specific period.
Balance Sheet
A current balance sheet provides a clear view of your business’s financial position, including assets, liabilities, and equity.
Collateral Documentation
If the loan requires collateral, you’ll need to submit paperwork verifying ownership and value of the asset.
Additional Documentation
Depending on your business, we may also ask for business licenses, Articles of Incorporation, lease agreements, or franchise contracts.
