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SBA 7(a) Loan Program 

The SBA 7(a) serves as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the SBA’s most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.
 

• Higher leverage deals compared with conventional financing
• Longer terms available
• No early balloon payment (floating rate loan)
• No ongoing debt service requirements
• Can be used for nearly any business expense
• Down payments can be as low as 25% for start up businesses or purchases of existing businesses
• Loan amounts up to $5 million
• Competitive Rates and Terms

Terms
• Working capital: Up to 7 years
• Equipment: Up to 10 years (or useful life)

Interest Rates
• Can be fixed or variable
• Eastern Bank provides competitive market rates that cannot exceed Prime +4.5%
• Terms less than 7 years: Prime + 2.25% (for fixed loans $50,000+)
• Terms equal to or greater than 7 years: Prime + 2.75% (for fixed loans $50,000+)

Fees
SBA Guarantee Fees
• Loans less than or equal to $150,000: 2% of guaranteed portion
• Loans between $151,001 and $700,000: 3% of guaranteed portion
• Loans between $700,001 and $1,000,000: 3.5% of guaranteed portion
• Loans between $1,000,001 and $5,000,000: $26,250 plus 3.75% of the guaranteed portion above $1,000,000

Financing
• Loans less than or equal to $150,000: SBA provides 85% guarantee
• Loans greater than $150,000: SBA provides 75% guarantee

Most for-profit businesses, including start-ups on a case-by-case basis, are eligible.

Ineligible Businesses

• Nonprofits
• Businesses engaged in lending
• Passive holders of real estate (generally, the business needs to be “operating,” not an R/E investment)
• Foreign owned or located companies
• High risk industry (i.e., pyramid/gambling/speculative/etc.)

Size Guidelines
• Manufacturing – from 500 to 1,500 employees
• Wholesale – 100 employees services ¬ from $2.5 million to $21.5 million in annual receipts
• Retail – from $5 million to $21 million
• General construction – from $13.5 million to $17 million

Loan proceeds can be used for most business purposes, including:

• Working capital (including Lines of Credit via SBA Express)

• Machinery and equipment

• Furniture and fixtures

• Leasehold improvements and debt refinancing (under special conditions)

Loan maturity is up to 10 years for working capital and equipment financing and generally up to 25 years for fixed assets.

Three Easy Ways to Apply

At any Eastern Bank branch: Use our branch locator to find one near you.

By email: send an email to our Business Banking team.

By phone: Call 800-333-8000 and select Option 1.