7A Loan Guarantee Program:

• May be used by a business for working capital, business startups, inventory, machinery and equipment purchases, real estate acquisition, construction, repair and renovation.
• A 7(a) loan is especially helpful if you are unable to obtain conventional financing on reasonable terms through other means. The SBA 7(a) program provides loan guarantees to lenders.
• The SBA guarantee reduces the lenders' risk and expands their ability to make small business loans.

How Does a 7A Loan Work:

• Florida First Capital Finance Corporation packages the loan application and prepares it for lender and SBA approval.
• The lender arranges the closing and disburses the funds, and monitors the loan in accordance with the loan terms.
• Under the 7(a) loan program, the lender obtains a loan guarantee from the SBA up to 75 percent of the loan amount for loans over $100,000 and up to 80 percent for loans less than $100,000.
  

Interest Rates, Terms, and Fees:

• Interest rates on 7(a) loans may be fixed or variable and usually cannot be more than 2.75 percent above the prime lending rate.
• Maturities are up to 5 to 7 years for working capital, up to 10 years for machinery and equipment, and up to 25 years for real estate.
• A fee of between 2 percent for smaller loans and 3.875 percent for larger loans is charged by the SBA. The fee is based on the guaranteed portion of the loan.
• FFCFC's Packaging Fees vary depending on the amount of packaging required, number of packages to be prepared and loan amount.