Whether you’re looking to finance a ground-up commercial construction project, expand existing facilities or make smaller building renovations and improvements, consider an SBA 7(a) loan to assist with your commercial construction project costs.
Common Uses of the 7(a) loan
With flexible uses and loan maximums of up to $5 million, business owners can access
financing for a variety of larger cost projects, including:
- Expanding, acquiring or starting a new business
- Purchasing land or buildings
- Covering new construction costs, as well as expansions and conversions of existing buildings
- Purchasing machinery and equipment
Loan Size Requirements and Down Payments
The SBA 7(a) loan amount must range between $250,000 and $5 million. At minimum,
the borrower must provide a 10% down payment.
Maturity Terms
Loan maturities are based on the borrower’s ability to repay, the purpose of the loan
proceeds and the useful life of the assets financed. Maximum maturities for SBA loans
are as follows:
- 25 years for real estate
- 10 years for equipment
- 10 years of working capital or inventory loan
Program Requirements
To be eligible for a 7(a) loan, your business must meet the following requirements:
- When loan proceeds are used to purchase or renovate an existing building, the borrower must occupy at least 51% of the property.
- For new construction, the borrower must occupy at least 60% of the property.
- All assets financed must be used to the direct benefit of the business.
Other eligibility standards include meeting SBA size guidelines, having qualified
management expertise, a feasible business plan, good character and the ability to
repay the loan.
Busey’s SBA Lending Team
Whether financing a ground-up commercial construction project or making minor
renovations and improvements to your business, partner with a lender who can
construct the appropriate financing plan for you.
Learn how Busey’s SBA Lending Specialists can help you navigate financing options
and find the solutions you need at www.busey.com/sba.