SBA 7(a) Loans 101: White Paper Sources

Our Speritas Capital clients asked for help understanding SBA 7a loans and we answered the call. The result is an exhaustively researched guide to SBA 7a loans to combat the incorrect and dated information you’ll find online about SBA Loans.

As Sgt. Joe Friday says on Dragnet – “All we know are the facts, ma’am.“

The Small Business Administration offers six types of programs designed to support small businesses. To quote the Congressional Research Service “these loan guaranty programs are designed to encourage lenders to provide loans to small businesses that might not otherwise obtain financing on reasonable terms and conditions.”

In short, the SBA helps businesses get loans after they’ve been turned down by other lenders. And while the SBA offers many programs, in this White Paper, we’re ‘following the money’ and focusing on the largest and most popular program – SBA 7a loans – which are broad use term loans up to $5MM.

SBA 7a Loans White Paper Sources

To create this white paper we relied strictly on primary research from Acts of Congress, Federal Regulations, Congressional Reports, legal documents, SBA Regulations & public notices, etc. When in need of clarification – or operational expertise – we’ve gone directly to the most knowledgeable SBA preferred lenders we know.

Some of our primary sources are listed below – we won’t bore you with a full list:

• The Congressional Act H.R. 5141 (83rd Congress), passed on July 30, 1953, establishing the SBA
• The SBA SOP 50 10 6 Lender and Development Company Loan Programs, effective October 1, 2020 – 587 pages. This document contains the SBA’s eligibility requirements for lenders and CDCs and the policies and procedures governing the CDC/504 and 7(a) loan programs.
• Report from the Congressional Research Service prepared for members of Congress R41146 – Small Business Administration 7(a) Loan Guaranty Program, updated June 21, 2021 – 48 pages.
• Code of Federal Regulations – CFR (the codification of the general and permanent rules published in the Federal Register by the departments and agencies of the Federal Government) CFR Title 13, Volume 1, Chapter 1, parts 1-199. Updated June 7, 2021.
• SBA 7(a) and 504 fee documentation information – updated SBA form 159 effective August 2021.
• 115th Congress: H.R.4743 – Small Business 7(a) Lending Oversight Reform Act of 2018, June 21, 2018 and Senator James Risch’s Committee Report 115-265
• The Federal Register –  Amendment and Implementation of the SBA 7(a) Lending Oversight Reform Act of 2018. Rule added April 15, 2020.
• Congressional Research Service, Report prepared for Members & Committees of Congress
  Title: Small Business Size Standards: A Historical Analysis of Contemporary Issues
  Updated May 28, 2021 – 44 pages
• Congressional Research Service Report, prepared for Members & Committees of Congress
  Title: COVID-19 Relief Assistance to Small Businesses: Issues and Policy Options
  Updated May 5, 2021 – 55 pages
  By Robert Jay Dilger

Contact Us

You need a strategic, cost effective solution to your financing needs and a funding partner you can trust. And one who never takes upfront fees. Let us put our decades of banking and structuring experience to work for you – email Speritas Capital Partners about your eligibility for an SBA 7(a) loan today.

Call/text Jeff Bardos, CEO
directly at 203-247-4358
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