The 7(a) program is SBA’s primary business loan program. SBA does not lend directly under it: a participating lender makes the loan and SBA guarantees part of it, so the decision that matters to a borrower is the lender’s credit decision. This page explains what a 7(a) loan can fund, who qualifies, and what the credit file has to prove — including when an independent feasibility study is part of the package.
What it is: a loan made by a participating lender and partially guaranteed by SBA. The maximum 7(a) loan amount is $5 million.
What it funds: acquiring, refinancing or improving real estate and buildings; short- and long-term working capital; refinancing current business debt; machinery and equipment, including installation; furniture, fixtures and supplies; complete or partial changes of ownership; and multiple-purpose combinations of those.
Who applies to whom: the borrower applies to a lender, not to SBA.
Where independent analysis comes in: SBA rules allow the Agency or the lender to require a feasibility study, an appraisal or a survey as a loan condition, and lenders routinely require one for construction, start-up and special-purpose projects.
Because the proceeds can cover both fixed assets and working capital, 7(a) is the program most often used for operating businesses, acquisitions and projects that need a single facility rather than the fixed-asset structure of a 504 loan. Where a project involves both new construction and an operating ramp-up — a hotel, a care facility, a processing plant — the lender is underwriting a business that does not exist yet, which is what pushes the file toward independent feasibility analysis.
SBA states that to be eligible for 7(a) assistance a business must:
Size is tested either against the size standard for the applicant’s industry or against SBA’s alternative size standard, which looks at tangible net worth and average net income after federal income taxes for the two preceding completed fiscal years (13 CFR 121.301). Creditworthiness is not a formula: 13 CFR 120.150 requires that loans be “so sound as to reasonably assure repayment” and that lenders use the same prudent commercial credit analysis they apply to similarly sized conventional loans.
| Personal guarantees | Holders of at least a 20 percent ownership interest generally must guarantee the loan. SBA or a delegated lender may require guarantees from others where credit or other reasons warrant it. |
|---|---|
| Appraisals and studies | SBA may require professional appraisals of the applicant’s and principals’ assets, a survey, or a feasibility study. |
| Hazard insurance | Required on all collateral for 7(a) loans greater than $500,000. |
The second row is the one that most often reaches this firm. Where a lender or SBA requires a feasibility study, it has to be independent of the borrower and of the lender, and it has to test the projections rather than restate them. The requirements SBA sets out for that work are covered on SBA feasibility study requirements under SOP 50 10 8.
Debt service coverage modelled on the actual amortisation schedule, not a rule of thumb, with the sensitivity range that shows where coverage breaks. See debt service coverage ratio in a feasibility study.
Independent evidence that the revenue line is achievable in that trade area — demand, competitive supply, pricing and absorption — rather than a market section written to fit the projection.
A sources-and-uses statement that reconciles to the construction budget, the equity injection and the contingency. The sources and uses calculator lays the structure out.
Relevant operating experience, or a management agreement that supplies it, tied to the staffing and payroll actually built into the projections.
SBA also operates a 7(a) Working Capital Pilot (WCP) — monitored lines of credit within the 7(a) program, for domestic or export purposes. SBA publishes these terms:
| Maximum loan amount | $5,000,000 |
|---|---|
| Loan guarantee | 85% for loans of $150,000 or less; 75% for loans greater than $150,000 |
| Maximum maturity | 60 months |
| Interest rate caps | $50,000 or less: base rate + 6.5%. $50,001–$250,000: base rate + 6.0%. $250,001–$350,000: base rate + 4.5%. $350,001 and greater: base rate + 3.0%. |
SBA suggests WCP for businesses with at least one year of operating history that can produce timely financial statements, receivable and payable agings and inventory reports. Confirm current terms with the lender and with SBA before relying on them — pilot programs change.
The firm is engaged by borrowers, lenders and CDCs to produce the independent analysis the file needs: feasibility studies, market studies, economic impact analysis and appraisals. Work is quoted as a fixed fee within one business day of a scoping call and typically delivered in 10–15 business days. Since 1998 the firm has completed 3,969 studies covering $41.2 billion in evaluated project value.
If the project is at an earlier stage — still deciding whether the market supports it — an independent market report is the cheaper first step, starting at $1,950 for a single county and one property type and delivered in 3–5 business days.
Last reviewed September 2026 · programme terms are set by SBA and change; verify current terms at the sources below before relying on them.
Fixed fee quoted in one business day; delivery in 10–15 business days. Independent analysis only — Wert-Berater does not arrange, broker or place capital.
Schedule a Qualification Zoom SBA study requirementsLegal disclosure. Wert-Berater, Inc. offices are mailing addresses only. Following the COVID-19 pandemic the firm has elected to work remotely; its office locations receive mail and are not staffed for visitors or in-person meetings. Headquarters mailing address: 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651.
Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.