SBA 7(a) Loan

The 7a program offers many advantages over typical conventional financing. For one, a lower down payment is typically required. In most instances the expected borrower injection is 10% of the project amount. Collateral requirements are also eased under SBA guidelines. The loan terms are generally much longer than those offered by most banks. A longer term means lower payments. Lower payments allow the business to retain and utilize more working capital, which is essential for a growing business. Additionally, all SBA loans are fully amortized. Therefore, the business will not be impacted with renewal fees, interim appraisal costs or untimely balloon payments.

Over 95% of the nation’s companies are classified as “small businesses” by SBA standards. Limitations are set by net profits, net worth and total employment according to industry.

Almost every type of business qualifies for SBA financing: manufacturing, wholesale, service, retail. Loans cannot be made to speculative businesses like mining, investing or most businesses engaged in gambling activities. Lenders, insurance companies, or any passive businesses like landlords or investors are also precluded. Businesses must be legal (no cannabis related businesses). As of March 1, 2026 all businesses must be at least 95% US citizen owned (no LPR’s) this includes any indirect ownership as well. Your ACC Business Development officer can answer any questions or concerns you might have.

ACC Capital offers SBA 7(a) financing up to $5 million.

SBA Guaranteed Loans can be used for virtually any legitimate business purpose. Examples include: Purchase real estate, start-up costs, make improvements to business property, purchase equipment, expand a business, consolidate debts, purchase another business, construct a new facility and finance a franchise. SBA loans cannot be used to reimburse owner investments or to pay back taxes.

On the contrary, SBA financing will not be extended to any business that does not demonstrate the ability to repay debts. The lower down payment and longer terms allowed with SBA guaranteed financing can enable a small business easier debt qualification based on lower payments and initial cash requirements.

• They take “forever” -ACC is an SBA preferred lender and does not need to submit our loan packages to SBA for approval. On average, it takes 30-60 days to process an SBA loan from submission to final funding. Much of time is required is due to required third party reports (appraisals etc.)
• You have to be “unbankable” to qualify -You do not have to be “turned down” by a bank prior to applying for an SBA loan.
• SBA loans require so much more paperwork than conventional loans – The documentation required for underwiring is virtually the same as a conventional loan offered by any bank.

Yes- Contact your ACC Business Development officer to discuss your refinancing request.

Yes, as long as the business will occupy at least 51% of the property (60% of a new building). There is only one closing and the loan converts to a fully amortized loan at the end of the construction. Owner occupied construction loans feature a 25 year term, tenant improvements (for the borrower’s space only) allow for 10 year terms.

Qualified applicants are given a Proposal Letter outlining major points of the loan prior to underwriting. Upon receipt of all required information and the executed Proposal Letter from the applicant, the formal underwriting will begin with presentation at the next loan committee. Typically, this process takes no longer than 7-10 days after which your proposal will be reviewed by our loan committee who meet weekly.

SBA does not permit its guaranty to be used as a substitute for available collateral, but the regulations also do not permit a lender to decline a loan only for lack of collateral. SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount. For loans in excess of $350,000 if the business assets do not fully secure the loan, the lender must take available personal assets of the principals as collateral.

After determining which loan product best fits the applicant’s needs, your ACC Capital BDO will analyze the loan application information based upon a combination of several factors, which include:

Cash Flow Coverage
Current and projected cash flow sufficient to cover business debt service is required.

Collateral
SBA does not permit its guaranty to be used as a substitute for available collateral, nor does it allow a loan request to be declined solely due to lack of collateral. SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount.

Management
The amount of management’s direct or applicable experience in the business can determine the overall viability of the loan request. Financial statements of existing businesses and resume’s help indicate management’s abilities. Information should also be submitted on key management and guarantors, together with duties and responsibilities. For start-up businesses, resumes should be detailed enough to explain past experience and how it relates to the start-up business.

Credit History
The borrower’s personal and business credit history are considered. Our credit is not score based and we understand that bad things happen to good people and businesses. If there are issues a good explanation goes a long way.