SBA SBA Loan Programs & Lending Requirements 1 — Questions and Answers
Question 1: What is the maximum loan amount for a standard SBA 7(a) loan?
- $2.5 million
- $5 million (Correct answer)
- $10 million
- $500,000
Correct answer: $5 million
The SBA 7(a) loan program has a maximum loan amount of $5 million.
Question 2: Which SBA loan program is specifically designed for purchasing real estate and long-term fixed assets?
- 7(a) Loan
- SBA Express
- 504 Loan (Correct answer)
- Microloan
Correct answer: 504 Loan
The SBA 504 Loan is designed for financing major fixed assets such as real estate and equipment.
Question 3: What is the maximum loan amount under the SBA Microloan program?
- $10,000
- $25,000
- $50,000 (Correct answer)
- $100,000
Correct answer: $50,000
The SBA Microloan program offers loans up to $50,000 to help small businesses start up and expand.
Question 4: What collateral requirement applies to SBA 7(a) loans over $25,000?
- No collateral is required
- Personal guarantee only
- Lenders must follow their collateral policies and take available assets (Correct answer)
- Only business assets may be used
Correct answer: Lenders must follow their collateral policies and take available assets
For SBA 7(a) loans over $25,000, lenders are required to follow their collateral policies and take available business and personal assets.
Question 5: Which SBA loan feature allows borrowers to get funds quickly, typically within 36 hours?
- SBA 504 Express
- SBA CAPLines
- SBA Express (Correct answer)
- SBA Export Express
Correct answer: SBA Express
The SBA Express loan provides a faster turnaround, with the SBA responding to applications within 36 hours.
Question 6: What is the typical SBA guarantee percentage on a standard 7(a) loan up to $150,000?
- 50%
- 75%
- 85% (Correct answer)
- 100%
Correct answer: 85%
For SBA 7(a) loans up to $150,000, the SBA guarantees 85% of the loan amount.
SBA SBA Loan Programs & Lending Requirements 1
What is the maximum loan amount for a standard SBA 7(a) loan?