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About SBA 7(a) Loan Guaranty Program

For more information or to apply for an SBA 7(a) Loan Guaranty, reach out to Mid-America CDC Director Jitka Durman.

Use of Proceeds

  • Expansion or renovation
  • Construction of new facilities
  • Purchase land or buildings
  • Purchase equipment, fixtures, leasehold improvements
  • Working capital
  • Refinance debt for compelling reasons
  • Inventory expansion


Interest Rates

  • Variable
  • For loans under 7 years, the maximum is Wall Street Journal Prime Rate + 2.25%
  • For loans 7 years or more, the maximum is Wall Street Journal Prime Rate + 2.75%
  • All rates are variable and adjusted quarterly as the Wall Street Journal Prime Rate Changes
  • Prime Rate is 3.5%



  • Business operated for profit (no non-profit entities)
  • Meets SBA size standard which is based on sales volume or number of employees and varies by industry
  • Owner/Operator shows good character
  • Management expertise and commitment
  • Demonstrates ability to repay
  • Business may not be involved in speculation or investment


  • Generally working capital is 5-7 years
  • Machinery and equipment not to exceed useful life
  • 20 year maximum on real estate and construction


Guaranty and Other Fees

  • The SBA Guaranty Fee is based on the amount guaranteed
  • For loans up to $150M, the guaranty fee is 2% of the amount guaranteed
  • For loans larger than $150M, the guaranty fee is:
    • 3% of the guaranteed amount up to and including loans for $700,000
    • 5% of the guaranteed amount for loans greater than $700,000
    • When the guaranteed portion of a loan is over $1 million, an additional 0.25% is added to the guaranteed portion that is in excess of $1 million
  • The borrower pays the guaranty fee, closing costs and other direct costs (such as environmental reports and appraisals)
  • Certain costs and fees can be financed