SBA & Government-Backed
7(a), 504, microloans, disaster loans: how the government-backed side actually works.
SBA & Government-Backed
Your SBA loan came up $189K short on collateral. Now the bank wants a $189K life policy.
On a Standard 7(a) loan, a one-owner business that isn't fully secured needs life insurance equal to the collateral shortfall. Here is how a made-up cabinet shop sizes the policy…
SBA & Government-Backed
Your manager owns 0% of the business. He can still sink this $380K SBA loan.
A 0% owner can still make your business ineligible for an SBA 7(a) loan. Here is who counts on Form 1919 question 4, and how a made-up bike shop works through it.
SBA & Government-Backed
You insured the $657K loan. SBA wants the $910K rebuild.
Insuring your building for the loan amount feels logical. SBA wants full replacement cost on everything you pledge, with the lender on the policy, or the loan doesn't close…
SBA & Government-Backed
The building was a dry cleaner in 2004. Now your $540K SBA loan starts with a Phase I.
SBA checks every known past use of the building you pledge. If one matches its list of environmentally sensitive industries, the review starts with a Phase I, whatever the loan…
SBA & Government-Backed
$90K of reno on a $300K duplex. SBA's builder line needed $100K.
Under SBA SOP 50 10 8.1, a Builders CAPLine renovation must cost at least one-third of the purchase price, and the line is based on your written cost proposal. Here is why a…
SBA & Government-Backed
She won a $420K contract. Her SBA line came back at $168K.
Under SBA SOP 50 10 8.1, a Contract CAPLine can't finance markup or profit. On a contract paid in installments, the line equals your greatest projected cash deficit plus 20%…
SBA & Government-Backed
Only 20% of the Building Is in a Flood Zone. SBA Wants Flood Insurance on All of It.
If any part of a collateral building sits in a FEMA flood zone, SBA SOP 50 10 8.1 requires flood insurance on the whole building and the equipment inside. Here's how one premium…
SBA & Government-Backed
The seller wants a $150K earnout. SBA says earnouts are banned. Flip it.
Your seller wants an earnout, but SBA SOP 50 10 8.1 bans them in 7(a) acquisitions. Here's how to flip it into a buyer rebate SBA allows, with the math.
SBA & Government-Backed
Your SBA line says $500K. Your borrowing base says $324,800.
Your SBA line of credit is only as big as the invoices and inventory that pass SBA's borrowing base test. Here's the math, with a worked example, before you draw.
SBA & Government-Backed
Same $250K SBA loan. One lender risks $125K, the other $62.5K. Guess which one said no.
A $250,000 SBA Express decline isn't an SBA decline. Here is how the 50% Express guaranty compares with the 75% 7(a) Small guaranty under SOP 50 10 8.1, and the one question to…
SBA & Government-Backed
Your $12.4M restaurant group makes your food truck "too big" for SBA. Run the second test.
A founder's other restaurant pushed a brand-new food truck over SBA's size standard. Here is how affiliation works under SOP 50 10 8.1, and the second size test most founders…
SBA & Government-Backed
Your parents' $30K gift letter won't close this SBA loan
Your parents covered $30K of your down payment, and the lender still can't fund. Here is the three-piece proof SBA's SOP requires for an equity injection, and the gift-letter…
SBA & Government-Backed
The seller wants $1.2M. The lender's appraiser says $1M. The $200K gap has to be equity.
When you buy a business with an SBA 7(a) loan, the seller sets the asking price, but the lender's business valuation sets the most you can borrow.
SBA & Government-Backed
Your 5-year lease just made this SBA payment $3,360 a month higher
Your lease length can cap your loan length.
SBA & Government-Backed
Your new partner wants 50%. At 49%, the lender can waive $60K.
At 49%, that same $60,000 could be cut to zero.
SBA & Government-Backed
Borrow $35K less and this SBA fee drops from $19,294 to $0
For SBA 7(a) loans approved in FY 2027, the upfront guaranty fee is 0% for manufacturers, listed food supply chain and rural businesses at $700,000 or less. See the bracket math.
SBA & Government-Backed
48% Real estate sank this $1M SBA loan. 51% would have saved it.
A 7(a) loan with 51% or more real estate can run up to 25 years. Below that, the term blends down, and that can change DSCR.
SBA & Government-Backed
$210K in your brokerage account just cut this SBA loan in half
Your SBA lender must check whether owner cash could fund part of a 7(a) loan. Here is how a made-up founder's $210K brokerage account cut his loan in half.
SBA & Government-Backed
A $340K SBA loan can legally cost 1.5 points more than a $360K one
SBA doesn't set your rate. It sets a ceiling.
SBA & Government-Backed
Your tenants pay the mortgage? SBA says you need 51% first
The tenants' $3,900 a month is a bonus, not the plan.
SBA & Government-Backed
Paid a $45K franchise fee? Check this SBA list before you sign the lease
Under SBA SOP 50 10 8.1, a franchise must be on the SBA Franchise Directory before a 7(a) loan can move. Check yours before you pay a fee or sign a lease.
SBA & Government-Backed
Pay off your SBA loan in year 2 and owe SBA $35K
Paying off an SBA 7(a) loan early can trigger a 5%, 3% or 1% SBA fee under SOP 50 10 8.1. Here's when it applies and how to time your payoff.
SBA & Government-Backed
You settled your old EIDL for $18K. Now SBA won't touch your new business.
Settled an old COVID EIDL for less than you owed? Under SBA SOP 50 10 8.1 that can count as a prior loss and block a new 7(a) loan. Here's the fix.
SBA & Government-Backed
Your green-card co-founder owns 5%. SBA says no loan.
Under SBA SOP 50 10 8.1, every owner of a 7(a) borrower must be a U.S. citizen or national. A green card isn't enough, even for a 5% stake. Here's the fix.
SBA & Government-Backed
How do you qualify for an SBA loan?
To qualify for an SBA loan, your business generally must be a for-profit U.S. small business that can repay from cash flow, with owners of good character who invest their own…
SBA & Government-Backed
SBA Can Make a Broker Refund That $18K "Only If Approved" Fee
That $18K "only if approved" packager fee is banned under SOP 50 10 8.1. Form 159, fee caps, and a $900K worked example.
SBA & Government-Backed
Dropping to 19% won't get you off a $600K SBA guaranty
The 20% line has a six-month memory.
SBA & Government-Backed
The bank cut $90K from your SBA loan. It was the MCA payoff.
An active MCA cannot be refinanced with a 7(a) loan.
SBA & Government-Backed
QuickBooks says $203K. The IRS says $136K. Guess which number underwriting uses.
Size the loan off the transcript number, not your dashboard.
SBA & Government-Backed
$430K of business assets, $205K of collateral. Guess what covers the $275K gap?
A thin collateral file does not kill a deal with strong cash flow.
SBA & Government-Backed
Underwriting killed the deal at 1.08x, not at the pitch
A pretty Year-2 slide does not rewrite last year's tax return.
SBA & Government-Backed
Your seller note can cover only $40K of the $80K SBA wants
On an SBA 7(a) buy, a seller note can cover only half of the 10% equity injection. Math, Form 155 standby, and a this-week checklist.
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