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SBA 7(a) Term Loan

The SBA 7(a) loan, the most common general-purpose SBA loan, offers single and multiple disbursement term and real estate loans. Use your loan for working capital or to purchase a business, inventory, or land for construction.
Ideal ForFor-profit businesses that need funds for expansion, purchase another business or manage cash flow. The 7a term loan is also an effective financing tool for experienced business owners who are starting a new business. Your business must meet SBA guidelines.
How it WorksA 7(a) loan offers flexibility, longer terms, and lower down payments, compared to other types of business financing.

Longer terms offer you lower payments to free up cash flow while you grow your businesses.
Does it work for you?Ask a Business Banker. We have more than 6,200 stores to serve you. Find the one closest to your home or office.

Additional Information

Credit AmountTerm Loans from $25,000 to $5 million.
Terms
  • Working Capital: up to 7 years.
  • Equipment: up to 10 years (or useful life).
  • Real Estate: up to 25 years.
Maximum Interest Rates
  • Fixed or variable.
  • Terms less than 7 years: Wall Street Journal Prime + 2.25%.
  • Terms equal to or greater than 7 years: Wall Street Journal Prime + 2.75%.
CollateralWells Fargo will take a secured interest business assets and/or a mortgage on real estate.
Fees
  • SBA Guarantee Fees:
    • Loans up to $150,000 — no guarantee fees.
    • Loans from $150,001 to $750,000 — 3% of the guaranteed portion of the loan.
    • Loans from $750,001 to $5 million — 3.5% of the guaranteed portion up to $1 million and then 3.75% for guaranty above $1 million.
Underwriting Requirements
  • Personal guaranties by all owners of 20% or more.
  • Adequate business collateral, or personal assets securing personal guaranty, i.e. mortgage on a home.
  • Hazard Insurance.
Financing
  • Loans less than or equal to $150,000 — SBA provides 85% guarantee.
  • Loans greater than $150,000 — Guaranteed amount is 75%.
For More Information
  • Review our Frequently Asked Questions.
  • Compare our Small Business Administration financing solutions.
  • Learn how you can use your funds.
How to Apply