Loans
Startup Venture Debt & SBA 7(a) Working Capital Guide
Scale operational runway without equity dilution using government-backed SBA 7(a) facilities and non-dilutive enterprise venture debt.
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Maximizing SBA 7(a) Loan Terms
Small Business Administration (SBA) guaranteed loans provide up to $5,000,000 in debt financing with amortizations up to 10 years for working capital and 25 years for commercial real estate.
1
Low Interest Caps
SBA caps maximum lender spreads over Prime Rate, ensuring borrower-friendly rates.
SBA caps maximum lender spreads over Prime Rate, ensuring borrower-friendly rates.
2
Long Repayment Horizons
Up to 10 years for working capital and inventory preserves critical operational cash flow.
Up to 10 years for working capital and inventory preserves critical operational cash flow.
3
Non-Dilutive Growth
Founders retain 100% equity ownership rather than selling discount valuation stock.
Founders retain 100% equity ownership rather than selling discount valuation stock.
Underwriting Documentation Essentials
- Three years of audited corporate tax returns and personal financial statements
- Debt service coverage ratio (DSCR) benchmarks above 1.25x
- Comprehensive business plan detailing projected revenue streams and capital use
- Collateral pledge structure and personal guarantee parameters
Venture Debt for Tech-Enabled Scaleups
Venture debt providers extend senior secured facilities pegged to existing venture capital equity rounds, providing 6 to 12 months of additional growth runway.