The most widely used SBA lending program is the SBA 7(a) loan program.

It’s popular largely because of its flexibility. Depending on the transaction and lender, SBA 7(a) financing can be used for purposes such as:

• Purchasing or expanding a business
• Business acquisitions and changes of ownership
• Working capital
• Purchasing equipment
• Refinancing certain qualifying business debt
• Purchasing commercial real estate
• Renovations and other legitimate business needs

For qualifying businesses with larger financing requirements, SBA 7(a) loans can be available for amounts of up to $5 million.

For entrepreneurs purchasing an existing business, the 7(a) program can be particularly important because financing may cover not only tangible assets, but also the goodwill and going-concern value associated with an established company.