Some exceptions are made for medical services like family doctors and dentists, or even new veterinarian businesses.Īt SBA7a.Loans, we’re happy to take a look at your individual situation and help you determine if your investment property qualifies. The SBA 7(a) loan program prohibits any funds from being used for an investment property like an apartment complex, homes with tenants, or multifamily and single-family homes. There’s no strict down payment amount set by the SBA or another institution, but lenders often request 10% or more for higher-risk businesses.
How Much of a Down Payment Do I Need?īecause the bank or lender is providing the loan, they’re in charge of the requisite down payment amounts for the SBA 7(a) loan. Instead, a bank or financial institution provides the loan, and the SBA backs (guarantees) a certain amount of it. The SBA doesn’t lend this money directly to businesses.
Businesses can use these for real estate, working capital, or equipment. The SBA 7(a) loan is one of several commercial loans that are government-backed and that provide small, U.S.-based businesses with funding.
