7(a) Loan Guarantees

All funds guaranteed by SBA under the 7(a) program are subject to the following general use restrictions: Excludes gambling establishments, non-profit enterprises, financial businesses primarily engaged in the business of lending or financing, passive businesses owned by developers and landlords, speculators in property, lending or investment enterprises, businesses engaged in illegal activity; prurient businesses, private clubs that restrict membership; pyramid sales distribution businesses; businesses with an Associate of poor character, businesses in which the SBA Lender, or any of its Associates, owns an equity interest, and businesses involved in political or lobbying activities. Funds must not otherwise be available on reasonable terms, nor used to pay off a loan to an unsecured creditor who is in a position to sustain loss, or for the benefit of any individual or entity other than the borrower.
• Standard 7(a) loans may be used to acquire, construct, expand, or convert facilities; to purchase building equipment or materials; to refinance debt, and for working capital.
• SBA Express Program loan proceeds may be used for the 7 (a) uses above and permits lender participants to use their own forms and processes.
• Qualified Employee Trust loans are used to permit employees to acquire controlling ownership interests in a small concern through an Employee Stock Ownership (ESOP) or employee cooperative structure.
• The CAPLine Programs can be used to finance seasonal working capital needs; finance the direct costs of performing certain contracts, subcontracts, or purchase orders; finance the direct cost associated with commercial and residential construction; or provide general working capital lines of credit.
• International Trade loan proceeds are used to finance assets that significantly expand an existing export market or develop new markets.
• Export Express Loans provide funds for export development activities and financing standby letters of credit.
• Export Working Capital (EWCP) loans may be used to pay for the manufacturing costs of goods for export; to purchase goods or services for export; to support standby letters of credit to act as bid or performance bonds; and/or to finance foreign accounts receivable.
• Manufacturers’ Access to Revolving Credit (MARC) Loans provide to support the working capital needs of the business who is primarily engaged in manufacturing.
Additional information is available on SBA's website at www.sba.gov/partners/lenders/7a-loan-program and at www.sba.gov/partners/lenders/training-demand.

Additional information is available on SBA's website at www.sba.gov/partners/lenders/7a-loan-program and at www.sba.gov/partners/lenders/training-demand.