SBA 7(a) Program Overview

The SBA 7(a) loan program provides financing to expand, acquire or start a small business and is based on several factors, including the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed. Projects are secured by a 1st lien note meeting SBA qualifications, having a maximum Loan to Value of 90%, depending on program parameters.

Typical Project Structure:

■75% to 90% First Loan
■10% to 25% Equity Injection


Maximum Loan Amount: $5,000,000

Rate Option: Prime Based Quarterly Adjustable

Maturity & Amortization:

■Business Acquisition – Up to 10 Years
■Equipment Acquisition – Up to 10 Years
■Debt Refinancing – 7 to 10 Years
■Permanent Working Capital – Up to 7 Years


SBA 7(a) Eligible Use of Proceeds:

■To cover new construction as well as expansion or conversion of existing facilities
■To acquire equipment, macxhinerty, furniture, fixtures, supplies or materials
■For long-term working capital, including the payment of accounts payable and/or for the purchase of inventory
■To refinance existing business indebtedness that is not already structured with reasonable terms and conditions
■For short-term working capital needs, including seasonal financing, contract performance, construction financing, export production and for financing against existing inventory and receivable under special conditions
■To purchase an existing business / practice


Eligible Practice Types:

■Medical, Dental, Veterinary Practices
■Pharmacy, Physical Therapy, Podiatry, Optometry, Chiropractic
■Ambulatory Surgical Centers, MRI Centers, Lab Businesses


SBA 7(a) Ineligible Use of Proceeds:



■To effect a partial change of business ownership or change that will not benefit the business
■To permit the reimbursement of funds owed to any owner, including any equity injection or injection of capital for the business’s continuance until the loan supported by SBA is disbursed
■To repay delinquent state or federal withholding taxes or other funds that should be held in trust or escrow.


7(a) Rates / Fees:

Interest rates are generally adjustable based loans, tied to the Prime index. Maturities up to 10 years are available for practices, up to 25 years if practice real estate is included, based upon the use of funds. Fees are based on the total loan request and calculated on the guaranteed portion of the loan.

Tell us about your goals, and we will help you understand the strategies you should consider. Contact us at 1-800-324-8808 or by email at mark@capital4healthcare.com.