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SBA 7(a) Loan Program

Accelerating small business growth

Get the working capital you need to start a business, grow your organization or take ownership of an existing company.

This is a government-guaranteed loan program to encourage lenders to extend business loans to qualifying small businesses that cannot obtain funds on reasonable terms through other conventional lending. The maximum SBA 7(a) Loan amount is $5,000,000.

 

Use of Funds

Working capital

Equipment and inventory purchases

Leasehold improvements

Commercial real property acquisition

Business acquisition

Business debt refinancing

SBA Guaranteed Percentage

85% guaranteed by SBA for loans up to $150,000

75% guaranteed by SBA for loans greater than $150,000, subject to the $3,750,000 maximum guaranteed amount

Terms

The maximum loan maturities vary depending on the use of proceeds:

  • Working capital - 5 to 10 years
  • Fixed asset acquisition - 7 to 10 years
  • Leasehold improvements - 7 to 10 years
  • Business acquisition - 10 years
  • Commercial real property acquisition - Up to 25 years

Interest Rate

Variable rate tied to the Wall Street Journal Prime Rate plus a margin

Eligibility Requirements

Must meet the SBA size standards as to annual gross sales or number of employees

Must be a for-profit business operation

Business must be located in the United States

 

For more information on SBA Loans, please visit www.sba.gov.

Cathay Bank

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Have a Question?

Please contact our SBA Department for all your SBA Loan needs at 866-228-4296 or speak with your local Cathay Bank branch manager.