The SBA 7(a) loan is the workhorse of small-business lending. Where the 504 program is limited to real estate and big equipment, 7(a) can fund almost any legitimate business need — which is why it's the SBA's most popular loan.
What a 7(a) loan can do
- Working capital — payroll, inventory, day-to-day operations.
- Buy a business — acquisitions and partner buyouts.
- Refinance debt — replace higher-cost loans or merchant cash advances.
- Equipment & real estate — owner-occupied property and machinery.
The trade-off: 7(a) offers great rates and long terms, but underwriting is thorough and funding can take weeks. If you need cash in days, pair it with faster working capital while the SBA loan closes.
Typical guidelines
| Requirement | Typical minimum |
|---|---|
| Time in business | 2+ years (some startups qualify) |
| Credit score | 650–680+ |
| Annual revenue | Consistent, positive cash flow |
| Documents | Tax returns, financials, business plan |
Not sure you'll meet the bar? See SBA loan requirements in plain English, or explore all SBA loan options.
Frequently asked questions
What can a 7(a) loan be used for?
Almost anything: working capital, buying a business, refinancing debt, equipment, inventory, and owner-occupied real estate up to $5M.
7(a) vs. 504 — which do I need?
Use 504 for buying property or heavy equipment at a fixed rate; use 7(a) for everything else, especially working capital and acquisitions.
How fast is funding?
Often 30–90 days. Preferred Lenders and smaller amounts are faster; revenue-based options fund in days.