SBA-7A

SBA flagship guaranteed loan program for small businesses.

Definition

The 7(a) covers up to USD 5M with SBA guarantee 75-85%. Lenders transmit applications via E-Tran XML: application data, business demographics, use of proceeds. Loans secondary market: 7(a) notes are securitised (Pool Loan / Section 5(b)).

Origin

Section 7(a) of the Small Business Act of 1953.

Example in context

A community bank submits a 7(a) loan request via E-Tran and gets a SBA Loan Number within 5 minutes.

Related terms

• NACHA ACH — underlying payments.