SBA 7(a) Financing for DFW Entrepreneurs
The most flexible small-business loan in the country, real estate, acquisition, equipment, and working capital in a single package.
- Business acquisitions with or without real estate
- Partner buy-outs and management buy-ins
- Combined real estate + equipment + working capital deals
- Owner-occupied real estate below $1.5M
SBA 7(a) Loans, at a glance
- Loan size
- $50K – $5M
- Amortization
- Up to 25 years (real estate) / 10 years (non-real-estate)
- Term
- Up to 25 years
- LTV
- Up to 90% on owner-occupied real estate
- Rate
- WSJ Prime + 1.5% to 3% (variable, quarterly reset)
- Typical close
- 45–60 days with Preferred Lender
If SBA 504 is the specialist, SBA 7(a) is the generalist. The 7(a) program will finance almost anything an operating business needs: real estate, equipment, leasehold improvements, inventory, working capital, business acquisition, partner buy-outs, and debt refinance. All of that can be combined into a single loan with a single closing and a single monthly payment, which is why 7(a) is, by volume, the single largest SBA program in the country.
In DFW the 7(a) program is particularly active for business acquisitions and partner buy-outs. We see a steady flow of deals where an operator is buying a going concern, an HVAC company, a dental practice, a trucking business, a neighborhood franchise, and financing the goodwill, equipment, and sometimes the real estate under it all with a single 7(a) loan. Our job is to match the file to a Preferred Lender whose credit box actually accommodates the deal.
Using 7(a) for business acquisition
SBA 7(a) is the primary vehicle for small-business acquisitions under $5M. The deal must be an arm's-length transaction, the buyer must have relevant experience, and the target business must show enough historical cash flow to cover the new debt at 1.25x DSCR or better. A 10% buyer equity injection is required, though as much as half of that can come from a fully standby seller note.
We will place acquisition files with lenders who specialize in the industry in question. A lender who writes 50 dental practice deals a year will move faster and price better than a generalist. Dallas-Fort Worth has an unusually deep bench of SBA lenders, which gives borrowers real leverage on rate and structure.
Working capital and equipment inside a 7(a)
One of the most underused features of 7(a) is the ability to roll working capital and equipment into a real estate purchase. A business buying a $1.2M building, $300K of new equipment, and needing $200K of post-close working capital can finance the whole $1.7M package under a single 7(a). The blended amortization is weighted, real estate gets up to 25 years, equipment gets 10, working capital gets 7, which keeps the monthly payment efficient.
The practical takeaway: never separate your capital needs into multiple loans when a single SBA 7(a) can cover them. One closing, one origination fee, one lender relationship, and cleaner books going forward.
Ready to explore SBA 7(a) options?
Get a QuoteSBA 7(a) Loans, FAQ
Is the SBA 7(a) rate fixed or variable?
Most SBA 7(a) loans are variable, tied to the WSJ Prime Rate and resetting quarterly. Fixed-rate 7(a) loans are allowed under the program rules but rare in practice because few lenders offer them and pricing is less attractive. For fixed-rate certainty on real estate above $1.5M, SBA 504 is usually the better choice.
What is the SBA guarantee fee on a 7(a) loan?
The guarantee fee scales with loan size: smaller loans carry a lower fee, larger loans (above $1M) carry 3.5% on the first $1M and 3.75% above that, applied to the guaranteed portion only (usually 75%). The fee is typically financed into the loan so it does not come out of pocket at closing.
Can SBA 7(a) finance a franchise in DFW?
Yes, provided the franchise is on the SBA Franchise Directory. Most national franchise brands are approved. The lender will underwrite the franchisee's qualifications alongside the franchise's historical unit-level economics.
Is there a prepayment penalty on SBA 7(a)?
Only on real estate loans with a term of 15 years or longer. On those, the penalty is 5% in year 1, 3% in year 2, and 1% in year 3, then it disappears. Loans with terms under 15 years have no SBA prepayment penalty.
Can I get an SBA 7(a) with less than perfect credit?
SBA lenders typically look for personal credit above 680, but exceptions happen when the business cash flow is strong and the borrower can explain the credit history. We have a handful of Preferred Lenders who will consider files in the low-to-mid 600s when the rest of the file is clean.
Other loan programs
SBA
SBA Loans
Government-guaranteed financing for owner-users buying, building, or expanding commercial property across North Texas.
- Loan size
- $150K → $15M
- Close
- 45–75 days
SBA 504
SBA 504 Loans
The only commercial loan product in the country that gives owner-occupiers a 20- or 25-year fixed rate on 40% of their purchase.
- Loan size
- $500K → $15M
- Close
- 60–90 days
Bridge
Bridge Loans
Short-term debt capital for acquisitions that need speed, value-add projects that cannot wait for a permanent loan, and refinances with a story.
- Loan size
- $500K → $150M
- Close
- 2–4 weeks
Ready to start your deal?
Tell us about your property and we'll match you to the right capital source across our network of 30+ lenders.