Top 9 Ways SBA 7(a) Loans Help Small Businesses

Rob Philion • April 7, 2025


The U.S. Small Business Administration's (SBA) 7(a) loan program serves as a vital resource for small businesses seeking financial assistance. With loan amounts up to $5 million, these loans offer flexible terms and can be utilized for various business purposes. Here are specific ways SBA 7(a) loans can support and enhance your small business.

1. Purchasing Real Estate

Acquiring land or commercial property is a significant step for business expansion. SBA 7(a) loans can finance the purchase of owner-occupied real estate, providing favorable terms and lower down payments compared to conventional loans.

2. Working Capital

Maintaining adequate working capital is essential for daily operations. SBA 7(a) loans can be used to bolster your working capital, ensuring you have the necessary funds to cover operational expenses and manage cash flow effectively. ​

3. Debt Refinancing

If your business is burdened with high-interest debt, refinancing through an SBA 7(a) loan can lead to more manageable payments and improved financial health. This option allows you to consolidate existing debts under more favorable terms.

4. Purchasing Equipment and Machinery

Upgrading or acquiring new equipment is often necessary for business growth. SBA 7(a) loans can finance the purchase of essential machinery and equipment, enabling you to enhance productivity and stay competitive.

5. Buying Inventory

Maintaining sufficient inventory is crucial, especially for retail and manufacturing businesses. SBA 7(a) loans provide funds to purchase inventory, ensuring you can meet customer demand without straining your cash reserves. ​

6. Business Acquisition or Partner Buyout

Expanding your business through acquisition or buying out a partner can be facilitated with SBA 7(a) loans. These loans offer the necessary capital to take over existing businesses or increase your ownership stake.

7. Leasehold Improvements

Enhancing your leased space to better suit your business needs can improve operations and customer experience. SBA 7(a) loans can fund renovations and improvements to leased properties, allowing you to create an optimal business environment.

8. Starting a Business

For entrepreneurs looking to launch a new venture, SBA 7(a) loans can provide the initial capital required for startup costs, including equipment, inventory, and working capital. This support can be instrumental in turning your business idea into reality. ​

9. Exporting Goods and Services

If you're aiming to expand into international markets, SBA 7(a) loans can support export activities by providing working capital and funds for export-related expenses. This assistance can help you tap into new revenue streams abroad. ​

By leveraging the versatility of SBA 7(a) loans, small businesses can address various financial needs, from expansion and equipment purchases to debt refinancing and working capital management. Understanding these options enables you to make informed decisions that align with your business goals and financial strategy.

Top 9 Ways SBA 7(a) Loans Help Small Businesses
By Rob Philion October 6, 2025
In case you missed it, today is National Coaches Day. In observance, I'm reposting an article I wrote several years ago on legendary coach John Thompson. Admittedly, those of us from a certain era will recognize more of the names, but the lesson and the story are both timeless. He was quite a guy. To paraphase James Earl Jones, I miss him and those like him....Damn few left . Lessons from a Legend Being a teenager and growing up in the 1980's, John Thompson's Georgetown teams were quite literally larger than life. Growing up on the outskirts of Philadelphia and being a college basketball fan, to me there was nothing better than watching those Big East battles in the early to mid 80's. Patrick Ewing, Ed Pinckney, Sleepy Floyd, Pearl Washington, Charles Smith, Reggie Williams, Chris Mullin, and on and on... And at the glorious center of it all was John Thompson. Invariably either yelling, scowling, laughing, teaching, coaching, or complaining (often in the same sequence), he stalked the sidelines with his gigantic white towel - and usually the win, slung over his shoulder. Despite his intimidating presence however, you didn't have to look too closely to find the appeal of John Thompson. Regardless of what happened on the hardwood, there was always a genuine post game embrace, a nod, and a warm smile for his adversaries lingering on the other side of the court - Especially Lou Carnesecca or Rollie Massimino. I loved seeing that - It endeared him to me, and I'm sure many others. Indeed, although there are many things worth remembering from those years - The introduction of the shirts under the jerseys courtesy of Patrick Ewing, Michael Graham's one and done year of defensive domination, and the discovery that a Hoya is not actually a bulldog - there is one that stands out. The 1982 NCAA Championship game. Thompson's upstart Hoya team was playing Dean Smith's heavily favored North Carolina Tar Heels. With just 17 seconds left, down by one with a chance to win, Georgetown's Freddie Brown picked up his dribble near the top of the key and turned to throw a pass to who he thought was Eric "Sleepy" Floyd, who only a moment earlier had been positioned just to his right. But Floyd wasn't there. In reaction to Brown's fake, he had proceeded down the right side, just outside the lane. Brown's pass drifted fatefully into the arms of a shocked James Worthy, who turned and dribbled out the remaining seconds, sealing not only the championship, but a few legacies as well. What has always stayed with me is not the game winning shot by a very young Michael Jordan just seconds earlier, the lapse of judgement and execution by rock solid team leader Brown, the championship loss, or Georgetown’s 1984 title over Houston's Phi Slamma Jamma team that served as retribution of sorts. What I remember most is Thompson, after the buzzer sounded and ignoring everything around him amidst the on court chaos, walking quietly and quickly to embrace and console his devastated player, who stood head in hands not knowing what to do or how to react to what had just happened. It was in that moment, with his arms tightly wrapped around one of the great unsung heroes of Georgetown basketball lore, that John Thompson showed his true self. In that moment, he showed us all that it really is about more than ourselves and our own achievements - About even more than team or personal goals. It's about each other and about our relationships to one another. A lesson we should all take to heart, especially now.
By Rob Philion August 11, 2025
Why an SBA Express Line of Credit Might Be Your Best Move Need faster access to funds without sacrificing flexibility? The SBA Express Line of Credit combines the low-cost, reliable backing of the SBA with the agility small businesses crave. Here’s what sets it apart: 1. Super-Fast Response Times Unlike traditional loans, the SBA Express generally offers a 72-hour SBA decision on whether to guarantee your line of credit—so you can get going almost immediately. 2. Flexible, Revolving Access It's not a one-and-done loan. You draw only what you need, repay, then borrow again—like a credit card but with lower rates and smarter terms. 3. Competitive SBA Backing SBA guarantees up to 50% of the line, lowering risk for lenders and improving your chances. You benefit without sacrificing speed. 4. Use It for Whatever Keeps You Rolling Need to manage cash flow, cover payroll, buy inventory, or respond to emergencies? It’s your cushion. Just don’t use it for ineligible costs like real estate or debt refinancing. 5. Pay Interest Only on What You Use Unused portion? No interest. You only pay when you draw. 6. Potential Fee Advantage Some lenders waive fees on the Express Line—making it even more cost-effective compared to term loans. What to Watch For Maximum Line Size : Typically up to $350,000—enough for many small business needs, but not every big project. Interest Matters : Rates vary; always compare. Use Restrictions : Strictly business—no personal spending, real estate or investment purchases. Lender Discretion : The SBA sets the rules, but each bank interprets them. Ask specifically about their SLA (Service Level Agreement) and timeline. Renewal Terms : Some lenders may require annual renewal or fee. Why You Should Care If cash flow moves fast in your business, waiting weeks for a term loan can cost you. The SBA Express Line gives you business-grade funding on your terms—quickly, flexibly, and affordably.
By Rob Philion August 8, 2025
Running a hair, nail, or lash salon isn’t just about delivering great service. It’s also about managing the constant challenges that come with owning a small business. From seasonal slowdowns to rising costs, many salon owners face cash flow gaps that can put their business at risk. That’s where working capital from an SBA 7(a) loan can make a difference. Common Problems Salons Face 1. Seasonal Fluctuations Many salons see a spike in revenue during holidays and wedding season, but slower months can strain cash flow. 2. Rising Supply Costs Hair color, nail polish, lash extensions — the cost of professional products keeps climbing, eating into margins. 3. Equipment Upgrades Chairs, dryers, manicure tables, and lash beds eventually need replacing. Without cash on hand, upgrades get delayed. 4. Staffing Challenges Keeping top stylists, nail techs, and lash artists often means offering competitive pay and benefits, which can be tough during slower periods. 5. Marketing & Client Retention Attracting new clients and keeping loyal ones takes consistent marketing — something many salons put off when funds are tight. How SBA 7(a) Working Capital Can Help The SBA 7(a) loan program offers salon owners affordable financing with flexible repayment terms. Working capital from an SBA loan can be used to: Cover payroll during slow months Buy supplies in bulk to save money Upgrade or replace equipment without draining savings Invest in advertising to bring in more clients Fund staff training to improve services and retention Because SBA loans offer longer repayment terms and lower rates than most alternatives, salon owners can manage cash flow without the pressure of short-term, high-interest debt. Bottom line: Whether you run a hair salon, nail spa, or lash lounge, having working capital ready can mean the difference between struggling through slow months or growing year-round. 📞 Contact ComCap today to see how an SBA 7(a) loan can help your salon thrive.
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