SBA 7(a) Loan Texas: Terms, Rates, and Eligibility
An SBA 7(a) loan is the Small Business Administration's most flexible program, offering Texas businesses up to $5 million for owner-occupied real estate, equipment, working capital, and acquisitions. Liberty Home Mortgage helps Texas owners prepare and connect with approved lenders. Call 972-466-2551 to review your scenario.
SBA 7(a) Terms, Rate Caps, and Uses
- Access to multiple lending relationships, including SBA-approved and conventional commercial lenders.
- Plain-English guidance on 7(a) rate caps, fees, and documentation before you commit.
- Experience with special-use properties common in Texas, from restaurants to auto services.
- Local Lewisville broker with direct phone access, not a call center.
- Ability to compare SBA structures against conventional and portfolio alternatives.
What the SBA 7(a) Program Offers
The SBA 7(a) program is the SBA's primary business loan. Approved lenders make the loan, and the SBA guarantees 85% of loans of $150,000 or less and 75% of larger loans, up to $5 million per loan. This guarantee lets lenders approve deals with lower down payments, longer terms, and more flexible collateral requirements than conventional business loans.
Rates are negotiated between borrower and lender but capped by the SBA based on loan size. Terms run up to 25 years for real estate and up to 10 years for equipment and working capital. See the official SBA 7(a) loan page for current program details.
Eligible Uses and Structure
Texas owners use 7(a) proceeds for owner-occupied commercial real estate, construction and renovation, equipment, inventory, working capital, business acquisition, and partner buyouts. Real estate projects generally require the business to occupy at least 51% of the property.
Beyond the rate, budget for the SBA guarantee fee, which for fiscal year 2026 ranges from 2% to 3.75% of the guaranteed portion depending on loan size and maturity, plus lender packaging fees. Comparing the full cost picture matters more than the headline rate alone.
Texas Eligibility and Documentation
Qualifying businesses are typically for-profit, meet SBA size standards, and cannot obtain the credit on reasonable terms from non-government lenders. Owners of 20% or more generally provide personal guarantees. Expect to document two to three years of business financials, tax returns, and a credible plan for repayment.
7(a) application guidance for Texas businesses purchasing or refinancing owner-occupied property in Lewisville, DFW, and statewide.
Commercial loan options across the United States for business owners, subject to borrower qualification and lender requirements.
DSCR and business-purpose investment loan options in 38 states where available and confirmed. Not all programs are available in all areas.
Common Questions About the SBA 7(a) Loan
The SBA 7(a) is the Small Business Administration's primary loan program. Approved lenders make loans of up to $5 million, and the SBA guarantees 85% of loans of $150,000 or less and 75% of larger loans.
Lenders and borrowers negotiate the rate, subject to SBA maximums based on loan size: base rate plus up to 6.5% for loans of $50,000 or less, 6.0% up to $250,000, 4.5% up to $350,000, and 3.0% above $350,000.
Eligible uses include owner-occupied commercial real estate, equipment, working capital, inventory, business acquisition, partner buyouts, and refinancing certain business debt.
Terms vary by use: up to 25 years for real estate, up to 10 years for equipment and working capital. Rates can be fixed or variable.
SBA loans carry a guarantee fee based on loan size and maturity, plus possible lender packaging fees. For fiscal year 2026, guarantee fees on loans with terms over 12 months range from 2% to 3.75% of the guaranteed portion depending on size.
You apply through an SBA-approved lender, not the SBA. The process typically includes business financials, tax returns, a business plan or projections, and personal guarantees from owners of 20% or more.
Ready to explore SBA 7(a) financing for your Texas business?
Call 972-466-2551 or Apply Online to review available options with an experienced broker.
Written by Aslam Mansoor — Loan Officer, Liberty Home Mortgage | NMLS 184238 | Company NMLS 321164
Aslam has structured SBA 7(a) financing for Texas contractors, medical practices, and professional firms. Read more on his bio page or meet the team on Our Staff. Verify licenses at NMLS Consumer Access.