USDA & SBA 7(a) Business Loans: A Comparative Overview
Loans From
USDA OneRD Loans
Loan Parameters
Maximum Loan Amount: $25 Million
Terms & Amortization
Up to 30 Years
Annual Renewal Fee
Funding Timeline
Use of Funds
North Avenue Capital offers three types of USDA Business Loans through the U.S. Department of Agriculture OneRD lending program to support credit-worthy businesses and nonprofits in eligible rural areas. These three lending types within the USDA OneRD Program, encompass three different needs: general business, nonprofits and organizations, and renewable energy projects. The primary goals of USDA OneRD loans are to create jobs, modernize facilities, and boost the local economy. With terms extending up to 30 years and a maximum loan limit of $25 million, USDA OneRD provide a long-term financing solution for rural development.
SBA 7(a) Loans POWERED BY VERITEX COMMUNITY BANK
Loan Parameters
Maximum Loan Amount: $5 Million
Terms & Amortization
Up to 25 Years
Location of Project
No Rural Constraint
Annual Renewal Fee
Funding Timeline
Use of Funds
SBA 7(a) loans at North Avenue Capital are powered by Veritex Community Bank, which provides SBA 7(a) Loans in partnership with the Small Business Administration to assist small businesses across the United States. These loans offer funding for various purposes, including business acquisitions, equipment purchases, working capital, and expansion. Unlike USDA loans, SBA 7(a) loans are not available to nonprofits and have a maximum loan limit of $5 million, with terms up to 25 years. SBA 7(a) Loans are a versatile financing option designed to meet the diverse needs of small businesses nationwide.
Learn more about SBA 7(a) Loans Powered by Veritex Community Bank and see how they can empower your business growth.
Finding the Right Fit
Both USDA and SBA 7(a) Loans from NAC are designed to provide significant financial support tailored to different business needs and circumstances. Whether you are looking to expand your operations in rural America or need versatile funding options for your small business anywhere in the United States, NAC offers a loan product that fits your requirements.
By understanding the unique benefits of each loan type, you can make an informed decision that best supports your business’s growth and success. Explore our loan programs today and discover how NAC can be your partner in business success.
USDA Business Loans
SBA 7(a) Loans with North Avenue Capital
The SBA 7(a) Loan Program is the SBA 7(a)’s primary initiative for offering financial support to small businesses, with loan amounts up to $5 million. At North Avenue Capital, SBA 7(a) Loans are provided and funded through our parent company, Veritex Community Bank. Veritex is a preferred lender according to the SBA and has closed over three-quarters of a billion dollars in SBA loans as of 2024. NAC offers SBA 7(a) loans starting at $500,000, available nationwide.
Comprehensive Business Financing Solutions with NAC
North Avenue Capital stands as a trusted provider of comprehensive business financing solutions, offering both USDA Business Loans and SBA 7(a) Loans to meet diverse business needs. Whether you are an established business in a rural area looking to expand with USDA loans or a small business seeking growth opportunities nationwide with SBA 7(a) loans, NAC delivers tailored financing options to support your goals. By providing competitive loan amounts, flexible terms, and a commitment to customer success, NAC ensures that your business can access the necessary resources to thrive and grow.
Refinancing a SBA 7(a) Loan with a USDA Loan
Refinancing a SBA 7(a) Loan with a USDA Loan can be a strategic move, especially if your business is located in a USDA-deemed rural area. Here are the major points to consider:
- No Prepayment Penalties: SBA 7(a) Loans do not have prepayment penalties, allowing you the flexibility to refinance if your loan amount is above NAC’s USDA Business Loan minimum of $2 million.
- Eligibility Check: Confirm your business is in a USDA-eligible rural location using the eligibility map.
- Higher Borrower Capacity: SBA 7(a) loans have a cap of $5 million per borrower. By refinancing with a USDA Business Loan, you can access larger loan amounts, up to $25 million, and still have the option to seek additional SBA capital, if needed.
Refinancing a USDA Loan with a SBA 7(a) Loan
- Loan Amount Fit: Ensure your loan amount to be refinanced falls within NAC’s SBA parameters of $500,000 to $5 million.
- Prepayment Penalties: Be mindful of any prepayment penalty requirements associated with your USDA loan.
- Term Length and Payments: SBA 7(a) Loans offer terms up to 25 years. While this might result in slightly higher monthly payments compared to USDA loans, it could be advantageous based on the company financial structure.
- Eligibility Requirements: Verify that your business continues to meet SBA eligibility requirements for refinancing: ie. look at owner occupied percentages, etc.