Recent SBA Modifications
great opportunity for businesses

Recent SBA Modifications

In December, as a result of the Economic Aid Act, there were several modifications made to the SBA7(a) program; which could present a great opportunity for businesses that don’t qualify for conventional commercial/business loans.

  • Guaranty percentage increased from 75% to 90% so SBA Lenders like Valley have more flexibility in our credit decisions.

  • Guaranty fee waived—which means substantial savings for borrowers

  • SBA will make the first 3 principal and interest payments after the loan is fully funded*

  • As an extra bonus, Valley will reduce our SBA 7(a) packaging fee to $1,000 - savings of up to $1,500.

  • *Subject to funds being available. The changes are effective until September 30, 2021



What is an SBA 7(a) loan?

SBA 7(a) loans are commercial loans that are partially guaranteed by the Small Business Administration (SBA). The guarantee allows our bank to provide loans that might not fit conventional guidelines. The SBA has been in existence since 1953 and was formed to help America’s businesses flourish.


  • What is an SBA 7(a) Loan used for?
    • Construction, expansion, renovation of facilities
    • Purchase of land and building
    • Purchasing equipment, furniture, fixtures, or leasehold improvements
    • Permanent working capital
    • Refinance of existing debt
    • Business acquisitions
    • Or a combination of several uses
  • Who is eligible for an SBA 7(a) loan?
    Valley's SBA Division serves for-profit retail, wholesale, manufacturing, technology, and service companies, among others. We also provide the market with credit, treasury, and deposit products.
  • Is an SBA 7(a) loan right for my business?
    For many businesses, Valley's SBA 7(a) Program provides an excellent option to fund growth. We have the financial tools and solutions to help you run more efficiently, open or expand facilities, buy new equipment, enter new markets, and capitalize on the opportunities that come your way.


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  SBA 7(a) FAQsDo you have questions or don't know where to begin? Check out our FAQs.

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SBA 7(a) Resource CenterLooking for more information on SBA 7(a) Loans? We've got you covered.




Need to speak to one of our SBA Loan Representatives?
Give us a call at 866-979-2265