Set up shop and finance that long list of needs for your new or growing business.

Small Business Administration 7(a) loans provide financing from $25,000 to $5 million to meet your general business needs, and are offered by banks.  

Colorado Lending Source helps these banks navigate the loan process in order to provide small business owners with greater access to this program. 

If this sounds like the right loan for you be sure to contact your business banker for additional information.

ELIGIBLE USES

Qualified borrowers can use Small Business Administration 7(a) loans to:

  • Finance startup expenses
  • Finance working capital
  • Purchase an existing business
  • Buy, build or renovate commercial real estate
  • Purchase machinery or equipment
  • Business debt refinance
  • Include professional fees

REQUIREMENTS

Are you eligible to get a loan?

  • The business is for-profit
  • The business is located in the United States
  • The business is valued at less than $15 million and the business has an after tax profit of less than $5 million a year over the average of two years
  • The business owner will occupy 51% or more of commercial real estate that is being renovated or purchased
  • The business owner will occupy 60% or more of commercial real estate that is being built
  • The business has demonstrated need for credit

RATES & FEES

Interest rates for 7(a) loans vary depending on the size of the loan, the term of the loan and whether or not the lender providing the loan chooses to use variable or fixed rate pricing. Interest Rates outlined below are the MAXIMUM rates a lender can charge, market rates may actually be lower than the maximum.

MAXIMUM FIXED RATES:

  Maturities
less than 7 years
Maturities
7 years or more
Loan Size Interest Rate Interest Rate
$50,001 or greater 8.63% 9.13%
$25,001 - $50,000 9.63% 10.13%
$25,000 or less 10.63% 11.13%

* A Base Rate of 6.38% was used to calculate the fixed rates above.

MAXIMUM VARIABLE RATES:

  Maturities
less than 7 years
Maturities
7 years or more
Loan Size Interest Rate Interest Rate
$50,001 or greater 6.50% 7.00%
$25,001 - $50,000 7.50% 8.00%
$25,000 or less 8.50% 9.00%

* The Wall Street Journal Prime base rate of 4.25% was used to calculate the variable rates above.

The Process

  1. The Lender calls Colorado Lending Source to check loan project eligibility and submits the loan package if eligible.
  2. Colorado Lending Source provides feedback to the lender on any additional information or documentation needed.
  3. Once the package is complete, Colorado Lending Source submits it to SBA.
  4. SBA APPROVES THE LOAN!
  5. Colorado Lending Source prepares a closing toolkit for lender. 
  6. The Lender is now responsible to close and disburse the loan.
  7. Colorado Lending Source is available to answer questions regarding loan modifications and liquidation.

Interested in learning more?

If you need help finding a banker to work with, check out the Small Business Administration website for a list of SBA lenders near you.

NEED HELP?

We're always here to help with any questions that you might have.

“Hey! I'm Laurel and always happy to answer questions about SBA 504 loans!”

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“Hey! I'm Laurel and always happy to answer questions about SBA 504 loans!”

Contact Us