Multi-Million Dollar SBA 7(a) Loans

What to know about multi-million dollar SBA 7(a) loans

Multi-million loan amounts (loans over $2 million) represented 9.4% of all SBA 7(a) loan approvals in 2021.

Before 2009 the SBA guarantee used to go up to $2 million. So few loans were approved over this amount. The American Recovery and Reinvestment Act of 2009 raised the SBA guaranty from $2 million to $5 million. Since 2010, loans over $2 million represent 4.4% of the SBA 7(a) loans approved through 12/31/2021.

There are some lenders who love the bigger deals and would rather do a $2 million acquisition loan over a $200,000 working capital loan any day of the week. Most lenders however have never, or rarely, approved a million dollar SBA loan, more-or-less multi-million loans.

SBA lenders will scrutinize a multi-million loan more than smaller loan amounts. The loans that are typically under a magnifying glass are put under a microscope when the loan amount is over $2 million.

If you’re a small business owner seeking a multi-million loan, matching to the right SBA lender becomes even more critical.