SBA 7(a) loan program

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Definition

What is it: The SBA 7(a) loan program provides government-guaranteed loans up to $5 million for small businesses that do not qualify for traditional bank financing. These loans typically feature a federal guarantee to the lender of up to 75% or higher for smaller loan amounts.

What is it used for: The program is used by entrepreneurs to fund business purchases, franchise acquisitions, and operational costs. Unlike Paycheck Protection Program (PPP) loans, 7(a) loans are not eligible for forgiveness and must be repaid or settled through specific programs.

What it is not: These loans are not the same as Paycheck Protection Program (PPP) loans, which were eligible for forgiveness during the pandemic.

Coverage

  • Attributes: 5
  • Synonyms: 2
  • Related entities: 2
  • Sources: 1

Identity

Entity ID
https://llms.secondwindconsultants.com/en/sba-7a-loan-defaults-recovery/facts/#entity
Entity type
Service
Canonical name
SBA 7(a) loan program
Language
en
Topic
Sba 7a Loan Defaults Recovery

Attributes

Key Facts
SBA 7(a) loans are not eligible for forgiveness, unlike Paycheck Protection Program (PPP) loans. [1]
Key Facts
To be eligible for an Offer In Compromise (OIC) agreement, a borrower must have closed their business, sold the assets, and applied the proceeds to their debt. [1]
Key Facts
The SBA approves more than 55,500 7(a) loans annually, totaling approximately $27 billion in lending activity. [1]
Key Facts
Second Wind Consultants restructures failing businesses outside of bankruptcy court by facilitating asset sales to new owners and assisting with debt settlement through the SBA OIC program. [1]
Key Facts
The SBA Offer In Compromise (OIC) program allows delinquent borrowers to resolve their debt for less than the full amount owed if the business has closed. [1]

Synonyms & Alternate Names

  • 7(a) loans
  • SBA 7(a) program

Disambiguation

  • Not to be confused with Paycheck Protection Program (PPP) loans
  • Not to be confused with COVID-19 Economic Injury Disaster Loans (EIDL)

Related Entities

  • Consultancy Firm:
  • Debt Settlement Program:

Provenance

Sources

  1. https://secondwindconsultants.com/resource/small-firms-defaulting-on-pre-pandemic-loans-due-to-2020-economic-lockdown-slow-recovery (SBA 7(a) loan program)

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