SBA 7(A) Loan

If you are planning to grow your small business or starting business, Small Business Administration Guaranteed Loans (SBA Loan) would be your best option. The Small Business Administration (SBA) is a United States government agency which provides support to entrepreneurs and small businesses. The SBA provides a government-backed guarantee on part of the loan, and Shinhan Bank America is currently participating as a PLP (Preferred Lenders Program) Lender. Under PLP program, SBA delegates the final credit decision and most servicing and liquidation authority and responsibility to PLP lenders.

SBA 7(a) Loan

SBA 7(a) Loan is designed to provide financing to establish a new business or to assist in the acquisition, operation, or expansion of an existing business. This is ideal for for-profit businesses in various industries, including new, start-up or recently acquired companies. The terms are decided primarily based on the ability to repay, the purpose of the loan proceeds and the useful life of the assets financed. However, maximum loan terms have been established: 25 years for real estate, up to 10 years for equipment (depending on the useful life) and working capital. The maximum loan amount for 7(a) loan is $5 million. In order to be eligible for SBA 7(a) Loan program, businesses must:

Operate for profit
Be small as defined by SBA
Be engaged in the United States or its possessions
Have reasonable invested equity
Use alternative financial resources, including personal assets, before seeking financial assistance
Be able to demonstrate a need for the loan proceeds
Use the funds for a sound business purpose
Not be delinquent on any existing debt obligations to the U.S. government