SBA 7A Guaranty

On behalf of local banks and small business clients, SEED Corporation packages SBA 7A Guaranty Program applications. SBA guaranties up to 85 percent of the amount of a loan depending on loan size. Currently, the maximum guaranty is $1.5 million on a $2 million loan. The SBA guaranty enables a lending institution to entertain a loan it might not otherwise due to collateral and/or existing cash flow.

Eligible Businesses
Most independently owned and operated businesses not dominant in their fields.

Use of Funds
Fixed asset acquisition and working capital. Refinancing can be considered when it benefits the small business.

Term and Rate
Five to seven years for working capital and up to 25 years for real estate. Interest rate is pegged at 2.25 percent over the lowest prime for loans of five to seven years, and 2.75 percent over lowest prime for loans over seven years.

For more information, please contact SEED Corp.

SEED is an equal opportunity lender and business assistance provider.