SBA 7(a) loans have the most flexible use of proceeds and may be used for everything from buying an owner-occupied building to providing working capital to expand your business. With no balloon payments, no prepayment penalties on loans under 15 years (nominal penalty for loans 15 plus years), and competitive fixed and variable interest rates, a 7(a) loan may be the best financing solution to grow your business.[cite::132::cite]

Businesses that are operated for a profit may qualify for SBA 7(a) financing if they meet specific standards for average number of employees or sales volume (averaged over a three-year period). These standards are based on type of business. If your business falls into one of these categories, it may qualify for an SBA 7(a) loan:

• Manufacturing: Up to 500 employees
  
• Wholesaling: Up to 100 employees
• Services: Annual sales up to $7 million
• Retailing: Annual sales up to $21.5 million
• Construction: Annual sales up to $17 million

If your business exceeds these standards, it may also qualify under an alternative size standard if it meets both of these criteria (including all affiliates):

• Tangible net worth of less than $15 million
  
• Profits after taxes (averaged over two years) of less than $5 million

Loan terms are determined based on how you use the proceeds. The following list shows what loan terms may be available.

• Building purchase: 25 years
• Building improvements: 25 years
• Mortgage refinance: 25 years
• Machinery & equipment purchase: 10 - 20 years
• Business acquisition or partner buyout: 10 years
• Leasehold improvements: 10 years
• Other debt refinance: 7-10 years
• Inventory: 7 years
• Working capital: 7 years