Growth is every founder's goal. But growth often creates expenses before it creates revenue. Maybe you landed a large contract and need additional equipment. Or you need to buy more vehicles to take on new jobs. Or you have a chance to buy a building you've been leasing for years. 

In other words, the opportunity is there, but the cash isn't. 

This is where many business owners start researching Small Business Administration (SBA) loans. One of the most popular SBA loans for supporting small business growth needs is the SBA 7(a). In fiscal year 2025, the U.S. Small Business Administration guaranteed approximately 78,000 SBA 7(a) loans totaling more than $37 billion.

Let’s look at whether this option might work for you. 

What Makes an SBA 7(a) Loan Different?

Most business loans are made directly by a bank. An SBA 7(a) loan works a little differently. The loan is still provided through an SBA-approved bank, but the Small Business Administration guarantees a portion of the financing. That guarantee may provide additional flexibility depending on the borrower's situation and financing needs. For some businesses, that can mean access to financing that might otherwise be difficult to obtain. This doesn't mean that SBA loans are easier to qualify for. It simply means that there is a different financing option that may be worth exploring depending on your situation.

What Can an SBA 7(a) Loan Be Used For?

One reason the SBA 7(a) program remains popular is its flexibility. According to the SBA, 7(a) loans can be used for a wide range of business purposes, including:

  • Purchasing commercial real estate
  • Renovating or improving buildings
  • Buying equipment, machinery, vehicles, furniture, or fixtures
  • Providing short- or long-term working capital
  • Refinancing certain existing business debt
  • Purchasing a business
  • Funding ownership transitions or partner buyouts

The maximum SBA 7(a) loan amount https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility is currently $5 million.

Why Would Someone Choose an SBA 7(a) Loan Instead of a Conventional Commercial Loan?

Many business owners assume the SBA 7(a) program is simply another type of business loan. In reality, it often comes into play when a financing request makes sense but doesn't fit perfectly within conventional lending guidelines. A business owner might be directed toward SBA financing when:

  • They have a solid business, but the borrower wants to preserve more cash for operations or growth.
  • The transaction includes assets that may be more difficult to finance conventionally.
  • They need to finance several things at once, such as real estate, equipment, and working capital.
  • The financing request may not fit a bank's conventional lending programs.

Because the SBA guarantees a portion of the loan, SBA financing may provide an alternative structure for businesses whose financing needs are not the best fit for conventional loan programs.

What Makes a Business Eligible for an SBA7(a) Loan?

To qualify for an SBA 7(a) loan, a business generally must be a for-profit small business operating in the United States, demonstrate an ability to repay the loan, meet SBA size standards, and be creditworthy. Eligibility also depends on how the loan proceeds will be used.

ACBT Commercial Bankers Can Advise you on SBA Loans

As an SBA-approved lender, our expert bankers can help you explore all of your SBA loan options and advise you on whether your business is eligible for an SBA 7(a) loan. We take a relationship-based approach to understand your business operation, reviewing both the pros and cons of any form of financing with you and help you understand the long-term impact of your decision to secure funding.

For more information about SBA 7(a) loans or other creative and flexible lending solutions, please connect with us.