This course outlines the foundational requirements a business must meet to be eligible for SBA 7(a) financing. As the first step in the loan process, understanding eligibility helps lenders assess whether an applicant qualifies before moving forward. The course also highlights business types that are always ineligible, helping you spot red flags early so you can guide applicants appropriately.

By the end of this course, you will be able to:

• Identify the basic eligibility requirements for a small business applicant
• Recognize businesses that are ineligible for SBA 7(a) financing
• Understand how certain business types or activities automatically disqualify an applicant
• Use early screening techniques to save time and set expectations with applicants

This course provides a foundational overview of businesses that appear ineligible at first glance but could qualify under certain conditions. You will explore revenue thresholds, required documentation, and nuanced eligibility criteria for each specific business category.

By the end of this course, you will be able to:

• Identify typical ineligible businesses that may qualify under specific circumstances
• Apply SBA-defined revenue thresholds to assess potential eligibility
• Determine when additional documentation is required to support eligibility
• Make informed decisions or escalate appropriately when evaluating gray-area businesses

This course provides the foundational knowledge to determine whether a business qualifies as “small” by examining size standards and affiliation rules. You'll gain a clear understanding of direct and indirect ownership, how to identify affiliates, and how these relationships impact loan eligibility.

By the end of this course, you will be able to:

• Identify the purpose and importance of SBA size standards
• Distinguish between direct and indirect ownership
• Apply SBA rules to determine when businesses are affiliated
• Use the Industry Size Standard based on NAICS code and employee count
• Use Alternative Size Standard based on tangible net worth and financial data

This course provides a foundational overview of three eligibility requirements: the Credit Not Available Elsewhere test, franchise lending, and management agreements. You will learn how to determine if an applicant meets the SBA’s “credit not available elsewhere” standard, evaluate franchise eligibility using the SBA Franchise Directory, and assess management agreements for compliance.

By the end of this course, you will be able to:

• Identify SBA’s requirement regarding the unavailability of credit elsewhere and recognize acceptable factors that demonstrate a credit weakness under SBA policy
• Evaluate how an applicant’s cash flow, collateral, and personal liquidity factor into the Credit Elsewhere determination
• Understand SBA’s definition of a franchise and use the SBA Franchise Directory to confirm eligibility
• Recognize the purpose and risks of management agreements and apply SBA’s criteria for meaningful oversight

This course provides the foundational knowledge on how SBA 7(a) loan proceeds may be used, with a focus on eligible and ineligible uses, equity injection requirements, debt refinance rules, and change of ownership scenarios. You will develop a clear understanding of how to evaluate loan purpose eligibility under SBA guidelines.

By the end of this course, you will be able to:

• Identify eligible and ineligible uses of 7(a) loan proceeds
• Distinguish between different structures for change of ownership
• Recognize when equity injection is required and what sources are acceptable
• Understand key criteria for refinancing existing debt, including payment improvement requirements
• Evaluate when a business acquisition qualifies as a change of ownership or a business expansion

This course provides a foundational overview of the additional program requirements that impact how 7(a) loans are structured. It covers key factors such as loan size, guaranty percentages, maturities, interest rates, and fees. You will learn how to review SBA rules, lender responsibilities, and common structuring situations to support loan origination decisions.

By the end of this course, you will be able to:

• Identify 7(a) loan size limits and when different 7(a) delivery methods apply
• Determine the correct guaranty percentage based on loan type and amount
• Match loan maturities to use of proceeds and calculate blended terms when needed
• Distinguish between variable and fixed interest rate rules and SBA maximums
• Recognize which fees may be charged by lenders, brokers, or third parties
• Understand when the SBA subsidy recoupment fee applies