SBA 7(a) Loan at Old National Bank

The SBA 7(a) Loan program offered through Old National Bank is designed to help small businesses access affordable, long-term financing backed in part by the U.S. Small Business Administration (SBA). Whether you are launching a new venture, expanding operations, purchasing equipment, acquiring real estate, refinancing existing debt, or supporting seasonal cash flow needs, the SBA 7(a) provides flexible options that make growth and stability more attainable for eligible businesses.

Why choose an SBA 7(a) Loan from Old National Bank?

• Government-backed confidence: The SBA guarantee reduces lender risk, enabling eligible small businesses to secure financing that might not be available through conventional channels.
• Flexible use of proceeds: Funds can be used for working capital, inventory, equipment, furniture and fixtures, commercial real estate, business acquisition, and debt refinancing under qualifying conditions.
• Competitive terms: Old National Bank structures loans with competitive interest rates and payment schedules tailored to the life of the financed asset and the borrower's cash flow.
• Lower down payment requirements: Compared to many conventional options, SBA 7(a) loans often require lower down payments, helping business owners preserve liquidity.
• Longer repayment periods: Longer terms make monthly payments more manageable — frequently up to 25 years for real estate and shorter terms for equipment and working capital — supporting cash flow stability.
• Dedicated service: Old National’s experienced lending team guides applicants through the SBA process, helping gather documentation, complete applications, and navigate underwriting and closing.

Typical loan parameters

While specific terms are subject to lending guidelines and SBA authorization, SBA 7(a) loans generally offer:

• Maximum loan amount: Up to $5,000,000 (subject to SBA program limits and bank underwriting).
• Repayment terms: Up to 25 years for commercial real estate; up to 10 years for equipment and working capital; terms vary based on use of proceeds.
• Interest rates: Rates can be fixed or variable and are typically set in relation to the SBA maximums plus a lender spread. Actual rates are determined by credit factors and market conditions.
• Collateral and guarantees: Collateral requirements depend on loan size and purpose; personal guaranties are commonly required from owners with significant ownership.

Who is eligible?

SBA 7(a) loans are intended for qualifying small businesses that meet SBA size standards and other program criteria. General eligibility considerations include:

• Be a for-profit business operating in the United States.
• Meet SBA size standards for the industry (measured by revenue or number of employees).
• Demonstrate the ability to repay the loan from business cash flow.
• Exhaust other reasonable financing options prior to seeking SBA guaranteed financing, unless otherwise justified.
• Owners typically must have acceptable credit history and provide personal guaranties when required.

Common uses of SBA 7(a) proceeds

The program covers a wide range of business needs, including:

• Purchasing real estate for business operations (owner-occupied).
• Acquiring an existing business or franchise.
• Buying machinery, equipment, and furniture.
• Working capital to cover payroll, inventory, and day-to-day expenses.
• Refinancing eligible business debt to improve cash flow or consolidate obligations.
• Funding growth initiatives such as hiring, renovations, or new locations.

Application process with Old National Bank

Old National Bank combines local relationship banking with SBA expertise to streamline the application experience. The typical process includes:

1. Initial consultation: Discuss your goals, project needs, and preliminary eligibility criteria with an SBA loan specialist.
2. Pre-qualification: Review financials and credit factors to determine likely program fit and potential loan structure.
3. Documentation and application: Prepare required documents such as business financial statements, tax returns, a business plan or use of proceeds statement, cash flow projections, ownership documentation, and personal financial statements.
4. Bank underwriting: Old National evaluates creditworthiness, collateral, and ability to repay, and submits a formal loan package to the SBA for a partial guarantee.
5. SBA review and approval: The SBA assesses the application and issues a guarantee decision. Once approved, final underwriting and loan closing take place.
6. Funding and post-closing support: After closing, funds are disbursed and Old National provides ongoing servicing and guidance to support your business success.

Documents commonly required

To move efficiently through the underwriting process, prepare to provide:

• Business tax returns and profit & loss statements for recent years.
• Personal tax returns for principal owners.
• Interim financial statements and business bank statements.
• Business plan or project summary outlining use of funds and growth strategy.
• Ownership and corporate formation documents (e.g., articles of organization, partnership agreements).
• Equipment quotes, purchase agreements, real estate contracts, or other evidence of intended use.

Benefits vs. conventional lending

SBA 7(a) loans can be a better fit than conventional loans for many small businesses because of lower down payment requirements, longer repayment terms, and the flexibility to use proceeds for various business needs. The SBA guarantee often enables approval where traditional financing might not be available due to limited collateral or credit history. However, SBA loans involve a more detailed application and documentation process and require compliance with SBA program rules.

Key considerations

• Approval is subject to credit review, collateral evaluation, and SBA program requirements.
• Processing timelines may be longer than some conventional loans due to SBA involvement.
• Fees and guarantee percentages are governed by SBA policy and lender practices; discuss the cost structure during the consultation.
• Responsible financial planning and realistic cash flow projections improve the likelihood of approval and long-term success.

Frequently asked questions

How long does it take to close?

Timelines vary based on loan complexity, documentation completeness, and SBA review. Simple transactions may close in a few weeks, while larger or more complex deals can take longer. Early preparation and clear communication with your loan officer help accelerate the process.

Can existing debt be refinanced?

Refinancing of qualifying business debt is often permitted when it improves cash flow or consolidates obligations, subject to SBA policy and lender underwriting.

Is collateral required?

Collateral expectations depend on the amount and purpose of the loan. Real estate and equipment commonly serve as collateral. Personal guaranties from owners with significant ownership typically apply.

Partner with Old National Bank for growth

The SBA 7(a) Loan at Old National Bank combines federal lending support with local expertise to deliver financing that helps small businesses start, grow, and thrive. With a focus on personalized service, knowledgeable underwriting, and a commitment to small business success, Old National is positioned to help guide you through the SBA process and structure a loan that aligns with your strategic goals.

Terms and conditions apply. Financing is subject to credit approval, program availability, and compliance with SBA requirements. Contact Old National Bank to speak with a lending specialist and explore tailored SBA 7(a) loan options for your business.

Address Bank: Chicago, Illinois Evansville, Indiana, U.S.
Bank: Old National Bank
Headquarters: Evansville, Indiana
Products: Loans & Credit
Type: SBA 7(a) Loan