SBA 7(a) Loans from NAC
Loan Parameters
$500,000 - $5 million
Nationwide Small
Business Lending
USDA + SBA 7(a)
Stack Loans
What is the
SBA 7(a) Loan Program?
The SBA 7(a) Loan Program is the Small Business Administration’s primary lending program designed to help small businesses secure the financing they need for various business purposes. These loans are guaranteed by the SBA, reducing the risk for lenders and making it easier for businesses to obtain funding.
Uncertain about your eligibility for a Small Business Loan Program?
NAC proudly provides two government-guaranteed loan programs nationwide for qualifying small businesses.
Benefits of Choosing an SBA 7(a) Loan for Your Small Business:
- Low Interest Rates
- Long Repayment Terms
- Low Down Payments
- Fewer Fees
- Fast Access to Capital
- Personalized Lending Solution
Why Choose SBA 7(a) Loans?
The SBA 7(a) loan program is designed to meet the diverse needs of small businesses. Here are some key benefits that make it an attractive option for entrepreneurs:
- Flexible Use of Funds: SBA 7(a) loans from North Avenue Capital can be used for a wide range of purposes, including expanding an existing business, purchasing equipment or inventory, refinancing debt, or acquiring real estate. This flexibility allows business owners to tailor the loan to their specific needs.
- Longer Repayment Terms: Depending on the use of the funds, SBA 7(a) loans can have repayment terms of up to 25 years. Longer terms mean lower monthly payments, which can significantly ease the financial burden on small businesses and improve cash flow.
- Lower Down Payments: Compared to traditional loans, SBA 7(a) loans often require lower down payments, making it easier for businesses to secure financing without having to tie up a significant amount of capital.
- Quick Funding Timeline: SBA 7(a) loans from North Avenue Capital are powered by Veritex Community Bank, a trusted SBA Preferred Lender with a century of combined experience. Veritex Community Bank is dedicated to streamlining the loan process, ensuring your loan is closed quickly and efficiently.
Key Features and Benefits of SBA 7(a) Loans
Flexible Use of Funds
SBA 7(a) loans can be used for a wide range of business purposes, including:
- Business Acquisition
- Improving Real Estate & Buildings
- Change of Ownership (complete, partial, or partner buyout)
- Short- and Long-term Working Capital
- Refinancing Business Debt
- Furniture & Fixture Purchasing
- Equipment Purchasing
- Leasehold Improvements
Unmatched Expertise and Commitment
At North Avenue Capital, we have always specialized in providing tailored financing solutions to rural businesses. Partnering with Veritex Community Bank, a long standing SBA Preferred Lender, we bring together extensive industry experience and a deep understanding of small business needs.
Personalized Service
Our customer-centric approach means we work closely with you to understand your business goals and develop a financing solution that fits your unique needs. We guide you through every step of the loan process, from application to funding, ensuring a smooth and efficient experience.
Strong Support for Rural and Urban Businesses
While our roots are in rural lending, we are now committed to supporting businesses in various locations, including urban areas through SBA 7(a) loans. Whether you are a rural entrepreneur or an urban business owner, our SBA 7(a) loans can help you achieve your financial goals.
How to Apply for an SBA 7(a) Loan with North Avenue Capital
Applying for an SBA 7(a) loan with NAC is a straightforward process designed to make it as easy as possible for you to secure the financing you need and get back to your business. Here’s a step-by-step guide to getting started:
Step 1
Initial Loan Review
Contact our team to schedule an initial consultation. During this meeting, we’ll discuss your business goals, financial needs, and eligibility for the SBA 7(a) loan program. Submit Initial Loan Review Here
Step 2
Prequalification
Based on the information provided, we’ll conduct a preliminary assessment to determine your eligibility for the loan. This step helps us identify any potential issues early on and ensures a smoother application process.
Step 3
Application Submission
Once you’re prequalified, our team will assist you in preparing and submitting the loan application. We’ll guide you through the required documentation, including financial statements, business plans, and personal financial information.
Step 4
Underwriting and Approval
After submitting your application, it will go through the underwriting process, during which we’ll evaluate your creditworthiness and business viability. Our team will keep you informed throughout this process and address any questions or concerns you may have.
Step 5
Closing and Funding
Upon approval, we’ll work with you to finalize the loan terms and complete the closing process. Once the loan is closed, the funds will be disbursed, and you can start using them to achieve your business goals. Welcome to the North Avenue Capital family of borrowers!
FAQs
Across the board, no matter the lender, a credit score of 650 or greater is required for SBA Loans. A credit score of 680+ is preferred, and 700+ is considered ideal.
Eligibility depends on factors like the type of business, business financials, credit profile, personal financial situation, and industry experience. The business must be for-profit, operate in the U.S., and meet SBA size standards. At North Avenue Capital, we lend SBA 7(a) Loans with a minimum of $500,000 and up to $5 million.
Depending on the loan purpose, SBA 7(a) loans come with extended repayment terms:
- Up to 10 years for working capital and equipment loans
- Up to 25 years for real estate loans
No. A conventional business loan idoes not have a third party guaranteeing the repayment of the loan. In contrast, an SBA loan, funded by an SBA-approved lender, is not considered conventional because a portion of the funds is guaranteed, or backed, by the federal government.
These loans can be used for various purposes, including purchasing or refinancing real estate, buying equipment, working capital, inventory purchases, business acquisitions, partner buyouts, and construction projects.
The process typically takes 30-60 days, depending on the complexity of the loan and the responsiveness of the borrower in providing the required documentation. Preferred Lender Program (PLP) lenders can expedite this process, which is what Veritex Community Bank is considered.
The terms depend on the purpose of the loan. Business acquisitions and expansions can have a maturity of up to 10 years, while loans involving real estate can extend up to 25 years.