SBA 7(a) Loan Guaranty Program

Overview

The 7(a) Loan Guaranty Program is the SBA's primary loan program. The SBA reduces risk to lenders by guaranteeing major portions of loans made to small businesses. This enables the lenders to provide financing to small businesses when funding is otherwise unavailable on reasonable terms.

Eligibility and Credit Criteria

• SBA backing on a loan is requested by the lender if it finds additional support is required for the application. In guaranteeing the loan, the SBA assures the lender that, in the event the borrower does not repay the loan, the government will reimburse the lending institution for a portion of its loss.
• To qualify for an SBA guaranty, a small business must meet the 7(a) criteria, and the lender must certify that it could not provide funding on reasonable terms except with an SBA guaranty.
• The maximum loan guarantee is $5 million.  On most 7(a) loan requests, the SBA may be able to guarantee 85% of a loan of $150,000 or less, 75% of a loan more than $150,000.  If the proceeds will be used to support exporting American-made goods and services to buyers outside the US of A, or to help American-based firms penetrate foreign markets, an SBA-guaranteed loan may be able to carry a 90% guaranty.
• You can obtain a list of active 7(a) lenders in Eastern Missouri by clicking on this -- www.sba.gov/mo/stlouis -- link.
• The SBA's St. Louis District Office can be reached as follows:

U.S. Small Business Administration
St. Louis District Office
Robert A. Young Federal Building
1222 Spruce Street, Room 10.103
St. Louis, MO 63103
314-539-6600 -- telephone

stlouis@sba.gov -- e-mail address

Contacts

SBA-St. Louis District Office