SBA 7(a) Business Financing Solutions
Business Acquisitions • Partner Buyouts • Working Capital • Expansion
SBA 7(a) business financing is owner-occupied commercial debt for qualified small business owners, providing capital for business acquisitions, partner buyouts, working capital, debt refinance, and owner-occupied commercial real estate, with the loan partially guaranteed by the U.S. Small Business Administration to the participating lender. SBA 7(a) debt is underwritten against the business's global cash flow, owner liquidity, post-close debt service coverage, and SBA Standard Operating Procedure eligibility. With more than 70 years of combined capital markets leadership experience, Cornovus Capital structures SBA 7(a) executions aligned with borrower objectives, applying institutional discipline and capital markets precision at every phase of the engagement.
Our advisory team manages the full SBA 7(a) process for sponsors nationwide, from initial underwriting and third-party diligence coordination through SBA lender interface, structuring, and closing execution, ensuring clarity and execution certainty throughout the transaction. SBA 7(a) financing is available up to $5 million per borrower with amortization up to 25 years for real estate and 10 years for business financing, at market-based floating rates. For sponsors evaluating SBA 7(a) business financing, Cornovus Capital structures and places SBA 7(a) debt for acquisitions, partner buyouts, working capital, debt refinance, and owner-occupied commercial real estate expansion, with credits placed through pre-qualified SBA preferred lenders matched to the transaction.
From lower middle-market acquisitions to complex ownership transitions and growth capital strategies, our approach to SBA 7(a) business financing is grounded in real underwriting outcomes, not theoretical structures. We evaluate each transaction against lender credit standards, including cash flow durability, debt service coverage, guarantor strength, and collateral support, ensuring SBA 7(a) loans are structured to meet approval thresholds and execute within today’s credit environment.
Typical SBA 7(a) Loan Terms
| Loan Size | Up to $5 million per borrower; companion structures available for larger transactions |
| Amortization | Up to 25 years for real estate; 10 years for business financing |
| Rate | Market-based, typically Prime + 1.5% to 2.75% |
| Collateral | Business assets, personal guarantees, and real estate when applicable |
| Down Payment | As low as 10% equity or 5% with seller participation (subject to lender approval) |
| Closing Timeline | Typically 45 to 60 days from executed term sheet and SBA authorization |
| Guarantee Fee | Standard SBA fees apply; financed into loan structure |
| Eligible Borrowers | Entrepreneurs, small business owners, and qualified franchise operators meeting SBA eligibility criteria |
Who Qualifies for SBA 7(a) Business Financing?
- Entrepreneurs acquiring or expanding existing businesses.
- Professionals pursuing practice ownership or partnership buyouts.
- Franchise operators expanding into new locations or acquiring territories.
- Established owners refinancing high-cost debt or recapitalizing operations.
- Management teams executing structured business acquisitions or partner transitions.
Eligible SBA 7(a) Use Cases
- Business acquisition: Purchase of established companies with transferable goodwill and cash flow.
- Partner buyout: Consolidate ownership and streamline equity transitions.
- Franchise development: Finance new franchise builds or multi-unit expansions.
- Business + real estate purchase: Combine operating company and property acquisition under one structure.
- Working capital & expansion: Fund growth, staffing, or operational initiatives.
- Equipment & improvements: Upgrade facilities, production, or technology.
- Debt refinance: Consolidate high-interest or short-term debt into long-term SBA structure.
Ineligible SBA 7(a) Transactions
- Passive investments or non-operating entities.
- Speculative or development-only projects without active business use.
- Businesses lacking sufficient cash flow or industry experience.
- Pyramid or multi-level marketing operations.
- Non-U.S. ventures or businesses not meeting SBA eligibility documentation.
About Cornovus Capital
With more than 70 years of combined capital markets leadership experience, Cornovus Capital is a national institutional commercial real estate and business capital advisory firm. Led by principals and senior advisors across institutional credit, capital placement, asset management, and hospitality ownership, we perform institutional-grade underwriting on every engaged transaction and place credits with pre-qualified capital partners matched to the transaction's credit profile, structure, asset class, and geography.
Our expertise spans seven debt silos: SBA 7(a), SBA 7(a) 100% CRE, SBA 504, Bridge and Structured Debt, CMBS and Conduit, Conventional Multifamily (Agency and LifeCo), and Student Housing, with a Hospitality Owner's Representation overlay led by principals with direct owner-operator experience across the full asset lifecycle. Our quantitative underwriting platform applies institutional credit standards across every transaction, delivering depth, consistency, and turnaround speed.
For insight into the broader interest rate and monetary policy environment influencing commercial real estate financing, visit the Federal Reserve's Monetary Policy resources for insights into national commercial real estate performance.
Connect with Cornovus Capital
SBA 7(a) financing supports owner-occupied acquisitions, partner buyouts, working capital, debt refinance, and commercial real estate expansion for qualified small business owners and operators nationwide. For active acquisition, refinance, recapitalization, or expansion opportunities, begin with the appropriate financing request. For early-stage discussions, use our inquiry path to confirm program fit and execution strategy.
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