The SBA 7(a) loan program is intended for businesses that have difficulty in getting a loan from a commercial bank at a reasonable rate. Existing businesses or start-ups are eligible. An SBA loan is a loan guaranteed by the Small Business Administration, which lowers the risk to the lender and is how borrowers are able to attain reasonable rates for their loans.
The 7(a) loan can be used in a wide variety of ways:
- Purchase land or buildings, new construction or expansion/renovation of existing buildings
- Purchase equipment, machinery, furniture, fixtures, supplies and materials
- Long-term working capital such as accounts payable and inventory
- Short-term working capital such as seasonal financing, contract financing
- Purchase an existing business
SBA 7(a) Loan Limits
Alaska Growth Capital originates SBA 7(a) loans in the $100,000-$5,000,000 range.