What is an SBA 7(a) Loan?
If you’re a small business owner looking for affordable financing options, the SBA 7(a) loan is one of the most popular and flexible small business loans available. Backed by the U.S. Small Business Administration, this program helps entrepreneurs access capital with competitive terms and lower down payments than conventional loans.
Whether you’re purchasing commercial real estate in Tennessee, refinancing an existing commercial mortgage in Illinois, buying equipment for a Texas based business or in need of working capital for a manufacturing business in Florida, our experienced SBA lenders can help you position your finances for long-term success.
Check out the Bank of Edison SBA 7(a) Loan features below!
The SBA 7(a) loan program is ideal for:
- Purchasing owner-occupied commercial real estate
- Refinancing existing business debt or commercial real estate loans
- Purchasing equipment or inventory
- Working capital
Key Features of an SBA 7(a) Loan:
- Loan Amount: Up to $5 million for most borrowers
- Down Payment: Typically 10-15% (much lower than conventional financing)
- Interest Rate: Variable, tied to Prime
- Repayment Terms: Up to 25 years for commercial real estate loans
Typical 7(a) Loan Terms:
- Real estate loans – 25 years with no balloon payment
- Equipment loans – 15 years, not to exceed the useful life of the equipment
- Business acquisition and working capital – 10 years
In order to qualify for a Bank of Edison SBA 7a loan, you must:
- Have at least two years of operational history. We do not fund start-ups.
- Operate for profit. Non-profit organizations do not qualify.
- Be located within our lending footprint.
- Be considered a small business, as defined by SBA.
- Demonstrate a need for a loan.
- Not be delinquent on any existing debt to the US Government.
- Be creditworthy and can reasonably assure repayment of the loan.
- Demonstrate a historical debt service coverage ratio of 1.2 times.
Not sure if an SBA 7(a) Loan is right for you?
We are not a one-size-fits-all lender and will not put you into a loan product that doesn’t make sense for your business. That said, many borrowers are better positioned to absorb interest rate risk of a variable rate SBA loan than they are able to satisfy the high down payments most conventional lenders.
What types of real estate are strong candidates for SBA 7(a)?
Industrial flex properties:
These versatile spaces—combining office, warehouse, and light manufacturing uses—offer small business owners the flexibility to grow and adapt under one roof. Whether you’re expanding operations, managing inventory, or streamlining logistics, owning an industrial flex property provides long-term stability and cost control. With SBA 7(a) loans offering up to 90% financing and longer repayment terms, business owners can preserve working capital while investing in a property that supports both current operations and future growth.
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Auto Repair Shops:
Auto mechanics require specialized space, equipment, and long-term stability—making property ownership a smart move. Whether you’re looking to purchase your first location or expand to a second shop, a Bank of Edison SBA 7(a) loan offers up to 90% financing with flexible terms designed with you in mind.
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Medical and Dental Offices:
Whether you’re launching a new practice or expanding an existing one, owning your office space offers long-term financial and operational benefits. The SBA 7(a) loan allows qualified physicians and dentists to finance up to 90% of the purchase price—freeing up capital for equipment, staffing, and patient experience enhancements. With predictable costs, the ability to customize your space, and the opportunity to build equity over time, practice ownership becomes a strategic investment in both your business and your future.
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Childcare Providers:
Daycare businesses benefit greatly from owning their own space. Greater stability, control over the environment, and long-term cost savings are just a few of the advantages. A Bank of Edison SBA 7(a) loan can help you achiever your goals with less money down than a conventional loan, preserving capital for hiring staff, curriculum development, licensing, and safety improvements. Owning your facility also helps build trust with parents and supports steady business growth in a high-demand industry.
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Interested in an SBA 7a loan?
Our team of experienced lenders is available to talk to you today. Reach out to us to find out how we can help.
Ready to start the process?
Fill out our online form to see if you qualify for a Bank of Edison SBA 7(a) loan.
The Bank of Edison does not lend in the following states – Arizona, California, Hawaii, Nevada, New York, New Jersey, North Dakota, South Dakota or Vermont