SBA 7(a) Loans Michigan | Complete Guide | $150K-$5M | Up to 25 Years
Michigan's Most Flexible Business Financing—For Acquisitions, Real Estate, Equipment, Working Capital & More
Access 25+ elite SBA 7(a) lenders through Michigan's #1 SBA loan platform. Zero cost to you. Better rates than going direct.
✓ $150K-$5M ✓ Up to 25 Years ✓ 45-60 Day Funding
📞 Call Michigan SBA Specialists: (855) 998-5874 | ✉️ hello@sbaloansmichigan.com
SECTION 1: WHAT IS AN SBA 7(a) LOAN?
The SBA 7(a) loan program is the Small Business Administration's primary and most versatile business financing tool, designed to help established Michigan businesses access capital with longer terms, competitive rates, and more flexible qualification requirements than conventional bank loans.
Unlike traditional commercial loans that require 20-30% down payments and come with restrictive covenants, SBA 7(a) loans offer Michigan businesses:
✓ Lower down payments (as low as 10%)
✓ Longer repayment terms (up to 25 years for real estate, 10 years for other purposes)
✓ Larger loan amounts (up to $5 million)
✓ More flexible underwriting (businesses that don't qualify for conventional financing often qualify for 7(a) loans)
✓ Versatile use of proceeds (working capital, business acquisitions, real estate, equipment, debt refinancing, and more)
The SBA doesn't lend money directly. Instead, the SBA guarantees a portion of loans made by approved lenders—typically 75-85% of the loan amount. This government guarantee reduces lender risk, allowing banks to approve loans they might otherwise decline and offer better terms than conventional financing.
For Michigan businesses in Metro Detroit, Grand Rapids, Ann Arbor, and throughout the state, SBA 7(a) loans have become the gold standard for growth capital—whether you're buying a competitor, expanding your facility, upgrading equipment, or simply need working capital to scale operations.
In Q2 2025, Michigan businesses secured 388 SBA loans totaling over $200 million, with average loan sizes of $526,749 and interest rates averaging 9.6%—down from 10.5% in 2024. The SBA 7(a) program represents the majority of these loans, funding everything from restaurant acquisitions in Grand Rapids to manufacturing expansions in Metro Detroit.
SECTION 2: WHY MICHIGAN BUSINESSES CHOOSE SBA 7(a) LOANS
Michigan business owners choose SBA 7(a) loans over conventional financing for five primary reasons:
1. Maximum Flexibility in How You Use the Money
Unlike SBA 504 loans (which are restricted to real estate and equipment) or conventional bank loans (which often come with use restrictions), SBA 7(a) loans can be used for virtually any legitimate business purpose:
Business acquisitions (buying an existing company or franchise)
Commercial real estate purchases (owner-occupied properties)
Equipment and machinery purchases
Working capital (inventory, payroll, expansion costs)
Debt refinancing and consolidation
Leasehold improvements and renovations
Franchise fees and startup costs (for qualifying businesses)
Mixed-use financing (combination of real estate + equipment + working capital)
This flexibility is massive. When you're acquiring a business, you don't just need the purchase price—you need working capital for operations, money for equipment upgrades, funds for renovations. SBA 7(a) loans let you finance the entire package in one loan.
2. Longer Terms Mean Lower Monthly Payments
Real estate financing: Up to 25 years
Equipment financing: Up to 10 years (or the useful life of the equipment)
Working capital: Up to 10 years
Compare this to conventional business loans:
Conventional real estate: Typically 15-20 years with balloon payments
Conventional equipment: 3-7 years
Conventional working capital: 1-3 years
The difference in monthly payments is substantial. A $1 million loan at 10% over 25 years = $9,087/month. The same loan over 15 years = $10,746/month. That's $1,659/month in cash flow savings—critical for growing Michigan businesses.
3. Lower Down Payments Preserve Your Cash
SBA 7(a) loans: Typically 10-15% down (as low as 10% for strong borrowers)
Conventional commercial loans: 20-30% down
SBA 504 loans: 10% down but restricted to real estate and equipment only
Example: $2 million business acquisition
SBA 7(a) down payment: $200K-$300K
Conventional down payment: $400K-$600K
Cash savings: $100K-$400K that stays in your business for operations, inventory, hiring, and growth
For Michigan businesses buying competitors, expanding operations, or pursuing strategic acquisitions, this cash preservation is often the difference between a successful acquisition and running out of working capital six months after closing.
4. Government Guarantee Means Better Approval Odds
The SBA's 75-85% loan guarantee dramatically changes lender risk calculations. Banks that would decline your conventional loan application often approve the same deal as an SBA 7(a) loan because the government absorbs most of the risk.
This is why businesses declined by Chase, Wells Fargo, and PNC often get approved through SBA 7(a) lenders.
Common scenarios where 7(a) loans get approved when conventional loans don't:
Credit scores in the 650-720 range (good but not "perfect")
Businesses with 2-5 years of history (established but not "seasoned")
Industries banks don't like (restaurants, construction, startups)
Higher debt-to-income ratios (leveraged but still profitable)
Limited collateral (strong cash flow but minimal assets)
5. Competitive Rates Despite Government Backing
Many Michigan business owners assume government-backed loans mean higher rates. The opposite is often true.
Current SBA 7(a) rates in Michigan (Q2 2025): Averaging 9.6%
Conventional commercial loan rates: 10-14% for comparable businesses
Alternative financing (merchant cash advances, etc.): 20-80% APR
The rate you get depends on:
Loan size (larger loans get better pricing)
Credit strength (higher scores = lower rates)
Time in business (more years = better rates)
Collateral and down payment
Which lender you work with (THIS IS HUGE)
This is where we add massive value. Different SBA 7(a) lenders offer different rates for the same deal. Our job is getting you the best rate by matching you with the right lender from our network of 25+ institutions.
SECTION 3: SBA 7(a) LOAN REQUIREMENTS & QUALIFICATIONS IN MICHIGAN
Not every Michigan business qualifies for SBA 7(a) loans, but the requirements are more flexible than most business owners realize.
Basic Eligibility Requirements:
✓ Operating as a for-profit business (nonprofits don't qualify)
✓ Doing business in the United States
✓ Owner has invested equity in the business
✓ Exhausted other financing options (can't get reasonable conventional financing)
✓ Small business by SBA standards (fewer than 500 employees for most industries; revenue thresholds vary)
Credit Requirements:
Personal credit score: Most SBA 7(a) lenders prefer 650+, though some will consider 620-650 with strong compensating factors (cash flow, collateral, time in business, large down payment).
Business credit: While not always required, strong business credit profiles help. Lenders want to see you pay vendors, suppliers, and existing creditors on time.
Credit history issues that CAN be overcome:
Past late payments (if resolved and explained)
Prior bankruptcies (if discharged 2+ years ago)
Collections or judgments (if paid or in repayment)
High credit utilization (if cash flow supports new debt)
Credit issues that are harder to overcome:
Recent bankruptcies (within 1-2 years)
Current judgments or liens
IRS tax liens
Recent foreclosures
Fraud or felony convictions related to financial matters
Business Requirements:
Time in business: Most SBA 7(a) lenders prefer 2+ years in operation, though startups and newer businesses can qualify for:
Franchise acquisitions (if buying an SBA-approved franchise)
Business acquisitions (if buying an existing profitable business)
Startups with significant industry experience and strong business plans
Revenue requirements: Typically $250,000+ in annual revenue, though this varies significantly by loan size and purpose. A $500K working capital loan requires more revenue than a $2M business acquisition where the acquisition target has its own revenue stream.
Profitability: Your business needs to demonstrate positive cash flow and the ability to service debt. Lenders typically want to see debt service coverage ratio (DSCR) of 1.25x or higher, meaning your cash flow is at least 125% of your total debt payments.
Industry restrictions: Most industries qualify, but some are excluded or face additional scrutiny:
Excluded: Lending/investment businesses, speculative real estate, gambling operations, multi-level marketing
Restricted but possible: Startups, businesses with passive income (rental properties), businesses with owners who have other failed businesses
Preferred: Established businesses in stable industries with proven cash flow
Collateral Requirements:
SBA 7(a) loans are secured loans, meaning lenders take collateral to protect their investment. However, lack of collateral alone will not disqualify you if your business is otherwise strong.
Primary collateral:
Assets purchased with loan proceeds (real estate, equipment, inventory)
Existing business assets (machinery, vehicles, receivables)
Personal real estate (if business collateral is insufficient)
The SBA's official policy: "Lack of collateral will not be the sole reason for declining an SBA loan if the borrower can demonstrate repayment ability."
In practice, lenders want to see collateral coverage of 80-100% of the loan amount, but they'll often approve loans with less if the business is strong.
Personal Guarantee Requirements:
All owners with 20%+ ownership must personally guarantee the loan. This means if the business defaults, owners are personally liable. This is standard for all SBA loans and most conventional business loans.
For business acquisitions: The seller sometimes provides a limited guarantee or seller note as part of the transaction, which strengthens the deal.
SECTION 4: HOW TO USE SBA 7(a) LOANS – BEST APPLICATIONS FOR MICHIGAN BUSINESSES
SBA 7(a) loans can be used for almost any business purpose. Here are the most common and most valuable applications for Michigan companies:
1. Business Acquisitions
The #1 use of SBA 7(a) loans in Michigan. Whether you're buying a competitor, acquiring a supplier, purchasing a franchise, or buying out a business partner, SBA 7(a) loans provide the perfect financing structure:
What you can finance:
Purchase price (up to 90% of business value)
Working capital for post-acquisition operations
Inventory and receivables
Equipment and furniture
Real estate (if included in the purchase)
Why 7(a) beats conventional acquisition financing:
Lower down payment (10-15% vs. 30-50% conventional)
Longer terms (10-25 years vs. 5-7 years conventional)
Can include working capital (conventional loans typically don't)
Seller financing can be structured alongside SBA loan
Michigan industries using 7(a) for acquisitions:
Manufacturing companies buying competitors or suppliers
Medical and dental practices acquiring other practices
Restaurants and franchises expanding through acquisition
Service businesses (accounting, law, engineering, marketing)
Distribution companies acquiring territory or routes
Example: Metro Detroit manufacturing company acquires competitor for $2.5M
Purchase price: $2,500,000
SBA 7(a) loan: $2,250,000 (90%)
Buyer down payment: $250,000 (10%)
Terms: 10 years, 9.8% interest
Monthly payment: $28,924
Result: Doubled production capacity, added $4M in annual revenue
2. Commercial Real Estate Purchase
Owner-occupied commercial real estate is one of the most strategic uses of SBA 7(a) loans. Instead of paying rent that builds someone else's equity, you build your own wealth while potentially lowering your occupancy costs.
What qualifies:
Office buildings, retail spaces, warehouses, manufacturing facilities
Mixed-use properties (as long as you occupy 51%+ of the space)
Land purchase + construction (through SBA 7(a) construction loans)
Purchase + renovation of existing facilities
Requirements:
Must be owner-occupied (you use at least 51% of the building for your business)
Must be your primary operating location
Cannot be investment property or passive rental real estate
Why 7(a) beats conventional commercial real estate loans:
10-15% down vs. 25-35% down (conventional)
25-year full amortization vs. 15-20 years with balloon (conventional)
Fixed or variable rate options
Can include working capital and equipment in the same loan
Michigan examples:
Medical practice in Grand Rapids buys 8,000 sq ft office building: $1.2M SBA 7(a) loan, 25-year term, stops paying $8,000/month rent
Manufacturing company in Sterling Heights purchases 25,000 sq ft facility: $1.8M SBA 7(a) loan, expands production and reduces occupancy costs by 30%
Restaurant group in Ann Arbor acquires downtown property: $950K SBA 7(a) loan, locks in location in high-growth area
3. Equipment & Machinery Financing
Manufacturing, construction, and industrial businesses throughout Michigan use SBA 7(a) loans to finance major equipment purchases with longer terms than conventional equipment loans.
What you can finance:
Manufacturing machinery and production equipment
Construction equipment (excavators, loaders, trucks)
Medical equipment (MRI machines, surgical equipment, dental chairs)
Restaurant equipment (commercial kitchens, ovens, refrigeration)
Technology and software systems
Vehicles and delivery trucks (if used in business operations)
SBA 7(a) equipment financing advantages:
Up to 10 years (or useful life of equipment) vs. 3-5 years conventional
Lower payments mean better cash flow
Can finance multiple equipment purchases in one loan
Can include installation, training, and related costs
Example: Lansing-area construction company finances $750K in equipment
Equipment: Excavators, loaders, dump trucks
SBA 7(a) loan: $675,000 (90%)
Down payment: $75,000 (10%)
Term: 10 years, 10.2% interest
Monthly payment: $8,923
Result: Expanded capacity, secured larger contracts, increased revenue 45%
4. Working Capital & Business Expansion
Growing Michigan businesses often need working capital to:
Hire additional staff
Purchase inventory for busy seasons
Expand marketing and sales efforts
Enter new markets or product lines
Fund receivables (bridge gap between invoicing and payment)
SBA 7(a) working capital loans provide:
Up to $5 million in capital
10-year terms (vs. 1-3 years for conventional working capital loans)
Lower monthly payments that don't choke cash flow
One-time infusion rather than revolving debt
Best for businesses that need:
Permanent working capital increase (not short-term bridge loans)
Growth capital for expansion
Cash to support increased sales and operations
Example: Grand Rapids distribution company secures $500K working capital
Use: Hire 8 new employees, increase inventory, expand territory
Term: 10 years, 9.9% interest
Monthly payment: $6,594
Result: Revenue increased from $2.8M to $4.2M in 18 months
5. Debt Refinancing & Consolidation
Refinancing existing business debt with an SBA 7(a) loan can dramatically improve cash flow and reduce monthly payments.
What you can refinance:
Existing business loans with high interest rates
Multiple debts consolidated into one payment
Short-term debt restructured to long-term
Merchant cash advances (MCA) and high-cost alternative financing
Lines of credit converted to term loans
Requirements:
Existing debt must be business-related (not personal)
Must demonstrate benefit to the business (lower rate, lower payment, or both)
Must be current on existing debt (not refinancing defaulted loans)
Example: Detroit-area restaurant refinances $400K in high-interest debt
Existing debts: $250K term loan (14% interest), $100K merchant cash advance (42% APR), $50K credit cards (18%)
Total monthly payments: $11,200
New SBA 7(a) loan: $400K, 10 years, 10% interest
New monthly payment: $5,279
Monthly savings: $5,921 (improved cash flow by $71,052 annually)
6. Franchise Purchases
Buying a franchise is one of the easiest ways to qualify for an SBA 7(a) loan because franchises have proven business models, established brand recognition, and predictable performance.
SBA 7(a) loans for franchises can finance:
Franchise fee
Initial inventory and equipment
Leasehold improvements and buildout
Working capital for first 6-12 months
Real estate (if purchasing the property)
Requirements:
Franchise must be on the SBA's approved franchise directory (most major franchises are)
Franchisee must meet franchisor's qualifications
Franchisee should have relevant industry experience (helpful but not always required)
Popular franchises in Michigan financed through SBA 7(a):
Fast food and quick service restaurants
Full-service restaurants and casual dining
Automotive services (oil change, repair, detailing)
Fitness centers and health clubs
Senior care and home healthcare
Commercial cleaning and janitorial services
SECTION 5: SBA 7(a) LOAN TERMS, RATES & STRUCTURE
Understanding SBA 7(a) loan terms helps you evaluate whether this financing makes sense for your Michigan business.
Loan Amounts: $150,000 to $5,000,000
Minimum: While the SBA doesn't set a minimum, most lenders require $150,000+ for SBA 7(a) loans. Below that, the cost and complexity don't justify the program.
Maximum: $5,000,000 is the SBA's maximum guarantee amount. If you need more, you might consider:
Conventional loans (for well-qualified businesses)
USDA B&I loans (for rural Michigan businesses, up to $25M)
Combining multiple financing sources
Sweet spot: Most Michigan SBA 7(a) lenders are most competitive in the $250,000 to $2,000,000 range.
Interest Rates: Currently 9-11% for Most Michigan Businesses
SBA 7(a) rates are based on the prime rate + a lender markup.
Current Michigan market (Q2 2025):
Prime rate: 7.5%
SBA 7(a) rates: Averaging 9.6%
Range: 9.0% to 11.5% depending on loan size, credit, and lender
Rate structure by loan size:
Loans under $25,000: Prime + up to 4.75%
Loans $25,000-$50,000: Prime + up to 4.5%
Loans $50,000+: Prime + up to 2.75%
Your actual rate depends on:
Credit score and credit history
Business financial strength
Collateral and down payment
Time in business
Industry and business type
Which lender you work with (rates vary significantly between lenders)
Fixed vs. variable rates:
Variable rates: Tied to prime rate, adjust monthly or quarterly (most common)
Fixed rates: Locked for life of loan (typically 0.25-0.5% higher than variable)
Example rate scenarios:
Strong borrower (750+ credit, 5+ years, strong cash flow): Prime + 2.5% = 10.0%
Good borrower (680 credit, 3 years, adequate cash flow): Prime + 3.25% = 10.75%
Acceptable borrower (650 credit, 2 years, minimal cash flow): Prime + 4.0% = 11.5%
Repayment Terms: Up to 25 Years
Real estate: Up to 25 years
Equipment: Up to 10 years (or useful life of equipment, whichever is less)
Working capital: Up to 10 years
Business acquisitions: Up to 10 years (25 years if real estate is included)
All SBA 7(a) loans are fully amortizing—no balloon payments. You know your exact monthly payment for the life of the loan (for fixed-rate loans) or can predict it based on prime rate (for variable-rate loans).
Down Payment: Typically 10-15%
SBA guidelines: Down payment depends on loan purpose and borrower strength, typically 10-15% of total project cost.
Factors affecting down payment:
Stronger borrowers: 10% down
Weaker borrowers: 15-20% down
Startups or newer businesses: 15-25% down
Business acquisitions: 10% down (seller financing can supplement)
Real estate purchases: 10-15% down
Example: $1 million business acquisition
Purchase price: $1,000,000
SBA 7(a) loan: $900,000 (90%)
Buyer down payment: $100,000 (10%)
Fees: SBA Guarantee Fee + Lender Fees
SBA guarantee fee (paid to SBA):
Loans $150,000 or less: 0% to 2%
Loans $150,001 to $700,000: 3%
Loans over $700,000: 3.5% on portion up to $1M, 3.75% on portion over $1M
These fees are typically rolled into the loan amount (you don't pay them out of pocket).
Lender fees: Packaging fee, underwriting fee, closing costs—typically $2,500 to $7,500 depending on loan size.
Example fee calculation for $500,000 loan:
SBA guarantee fee: $15,000 (3%)
Lender closing costs: $5,000
Total fees: $20,000 (rolled into loan)
Total amount financed: $520,000
Personal Guarantee & Collateral
Personal guarantee required: All owners with 20%+ ownership must personally guarantee the loan.
Collateral required: Lenders take a first lien on assets purchased with loan proceeds (real estate, equipment, inventory) and may require additional collateral if primary collateral is insufficient. However, loans will not be declined solely for lack of collateral if cash flow is strong.
SECTION 6: SBA 7(a) VS. SBA 504 VS. CONVENTIONAL LOANS – COMPARISON
Choosing the right financing structure can save you tens of thousands of dollars and significantly impact your business cash flow.
SBA 7(a) vs. SBA 504 Loans
Choose SBA 7(a) if:
You're acquiring a business (504 doesn't allow acquisitions)
You need working capital along with real estate or equipment
You want faster closing (7(a) closes quicker than 504)
You prefer dealing with one lender instead of multiple parties
Choose SBA 504 if:
You're ONLY buying real estate or equipment (no working capital needed)
You want a fixed rate for 25 years (no rate risk)
Your project is $1 million+ (504 structure saves money on larger deals)
You're in manufacturing (504 offers advantages for manufacturing businesses)
Many Michigan businesses start with 7(a) for acquisitions or mixed-use financing, then use 504 later for real estate-only projects.
SBA 7(a) vs. Conventional Bank Loans
Conventional loans are faster and simpler—IF you qualify. Most Michigan businesses don't qualify for conventional financing at favorable terms, which is exactly why SBA 7(a) loans exist.
SECTION 7: THE SBA 7(a) LOAN PROCESS – STEP BY STEP
Understanding the process helps you prepare and reduces surprises.
Step 1: Initial Consultation & Qualification (Days 1-3)
What happens:
We discuss your business, financing needs, and goals
Review preliminary qualification criteria (credit, revenue, time in business)
Determine loan amount and structure
Explain process and timeline
What you need:
Basic business information (revenue, time in business, ownership structure)
Personal credit score
Clear understanding of how much you need and why
Outcome: You'll know whether SBA 7(a) makes sense and what your approval odds are.
Step 2: Document Gathering & File Packaging (Days 4-14)
What happens:
We provide document checklist
You gather required documentation
We review and organize everything
We prepare comprehensive loan package
What you need to provide:
Personal: Tax returns (2 years), personal financial statement, credit authorization
Business: Tax returns (2 years), financial statements, business plan, ownership documents
Project-specific: Purchase agreement (acquisitions), lease (equipment), property details (real estate)
This is where we add massive value. We package your loan file in a way that highlights strengths, addresses potential concerns, and presents your business in the best possible light. This is the difference between approval and decline.
Step 3: Pre-Underwriting & Lender Selection (Days 15-21)
What happens:
We conduct internal pre-underwriting to identify potential issues
We determine which lenders from our network of 25+ are best suited for your deal
We reach out to 2-4 lenders to gauge interest and pricing
We select the best-fit lender(s)
Why this matters: Different SBA lenders have different:
Credit appetites (some like 680+ scores, others accept 650+)
Industry preferences (some love restaurants, others won't touch them)
Loan size sweet spots (some prefer $500K-$2M, others do $250K-$1M)
Rate pricing (can vary by 0.5-1.5% for the same deal)
We match you with the lender most likely to approve you at the best terms.
Step 4: Lender Submission & Underwriting (Days 22-35)
What happens:
We submit your complete package to selected lender(s)
Lender conducts full underwriting review
Lender requests additional documentation (if needed)
We manage all communication and follow-up
Common underwriting requests:
Updated financial statements
Explanation of credit issues
Additional business details
Third-party reports (appraisal, environmental, business valuation)
Timeline: Most lenders complete underwriting in 10-15 days for SBA 7(a) loans.
Step 5: SBA Approval & Closing Preparation (Days 36-50)
What happens:
Lender submits approved loan to SBA for guarantee
SBA reviews and issues guarantee (typically 5-7 days for preferred lenders)
Lender issues commitment letter
Closing documents are prepared
Third-party reports are ordered (appraisal, environmental, title work)
You'll receive:
Loan commitment letter outlining final terms
Closing checklist
Timeline to funding
Step 6: Closing & Funding (Days 51-60)
What happens:
Final documents are signed
All conditions are satisfied
Lender wires funds to appropriate parties
You're funded
Total timeline: 45-60 days on average for SBA 7(a) loans, though complex transactions or situations requiring additional documentation may take longer.
Compare this to going direct to banks: Most business owners spend 90-120 days and contact 10-20 lenders before finding one that will approve them. Our process is faster because we know which lenders to approach and how to package deals for approval.
SECTION 8: COMMON SBA 7(a) LOAN MISTAKES MICHIGAN BUSINESSES MAKE
Avoid these pitfalls that delay or derail SBA 7(a) loan approvals:
Mistake #1: Not Knowing Which Lender to Approach
The problem: Business owners call Chase or Wells Fargo because they're household names. These mega-banks cherry-pick only perfect deals and decline 80%+ of applications.
The solution: Work with SBA specialists who know which lenders actually approve deals like yours. The right lender makes all the difference.
Mistake #2: Incomplete or Poorly Organized Documentation
The problem: Submitting incomplete applications or messy documentation signals disorganization and increases decline risk.
The solution: Let experts package your file. We know exactly what lenders want to see and how to present it.
Mistake #3: Applying for the Wrong Loan Amount
The problem: Asking for too much (beyond what cash flow supports) or too little (not enough to accomplish your goals).
The solution: Work with someone who can run cash flow analysis and determine the optimal loan amount based on your actual financials.
Mistake #4: Not Addressing Credit Issues Upfront
The problem: Hoping lenders won't notice credit problems or not explaining them properly.
The solution: Address credit issues proactively with written explanations. Lenders appreciate transparency and context.
Mistake #5: Underestimating the Timeline
The problem: Expecting SBA 7(a) loans to close in 2-3 weeks like conventional loans.
The solution: Plan for 45-60 days. If you need money faster, SBA Express (up to $500K) can close in 30-35 days.
Mistake #6: Not Shopping Lenders
The problem: Accepting the first rate you're offered without comparing options.
The solution: We automatically shop your deal to multiple lenders to ensure you're getting the best terms.
SECTION 9: WHY WORK WITH SBA LOANS MICHIGAN FOR YOUR 7(a) LOAN
We Do the Heavy Lifting
✓ Complete file packaging and presentation
✓ Pre-underwriting before submission
✓ Lender matching from 25+ institutions
✓ Document coordination and follow-up
✓ Negotiation of terms and rates
✓ Your advocate from application through funding
You don't pay us anything. We're compensated by lenders, meaning you get expert guidance at zero cost while often securing better rates than going direct.
We Know Michigan Businesses
Based in Metro Detroit with deep roots throughout Michigan, we understand:
Michigan's economic landscape and key industries
Local market conditions and opportunities
Michigan-specific business challenges
Regional lender preferences and appetites
We've helped hundreds of Michigan businesses across Metro Detroit, Grand Rapids, Ann Arbor, Lansing, Flint, and rural communities secure SBA financing.
We Have Relationships with 25+ Aggressive SBA Lenders
Not all SBA lenders are created equal. Some are slow. Some are selective. Some have limited capacity.
We work exclusively with lenders who:
Actually originate substantial SBA loan volume
Move quickly and decisively
Have competitive pricing
Understand diverse industries
Close deals (not just take applications)
These relationships give you:
Access to lenders you couldn't reach on your own
Better pricing through our volume relationships
Faster processing and decision-making
Higher approval odds
We Get Better Pricing
Because we bring lenders significant volume, we've negotiated preferential pricing that individual business owners can't access going direct.
Our clients typically save:
0.25% to 0.75% on interest rates
$2,000 to $5,000 in fees
Over the life of a $1M loan, this can mean $20,000-$50,000 in savings
We Move Fast
Average timeline working with us: 45-60 days
Average timeline going direct to banks: 75-120 days (if you get approved at all)
Why we're faster:
We package files correctly the first time (no back-and-forth)
We pre-underwrite to catch issues before submission
We know which lenders to approach (no wasted submissions)
We manage the entire process (you don't chase documents and answers)
We're Honest About Your Approval Odds
If you don't qualify, we'll tell you upfront. We won't waste your time or ours submitting deals that have no chance. And we'll tell you what needs to improve to get approved in the future.
If you're borderline, we'll tell you which lenders give you the best shot and how to strengthen your application.
If you're a strong candidate, we'll get you multiple offers so you can choose the best terms.
SECTION 10: MICHIGAN INDUSTRIES WE SERVE – SBA 7(a) LOAN SPECIALIZATIONS
We've facilitated SBA 7(a) loans for Michigan businesses across virtually every industry. Here are sectors where we have deep expertise:
Manufacturing & Industrial
Michigan's manufacturing sector—from automotive suppliers to advanced manufacturing, food processing to industrial fabrication—regularly uses SBA 7(a) loans for:
Business acquisitions (buying competitors or suppliers)
Equipment purchases (CNC machines, production lines, robotics)
Facility expansion and real estate purchases
Working capital for growth
Recent example: Sterling Heights metal fabrication company acquired competitor for $1.8M (SBA 7(a) loan), doubled capacity and revenue.
Restaurants & Food Service
From full-service restaurants to quick-service concepts, breweries to catering operations, Michigan's food service industry relies on SBA 7(a) for:
Restaurant acquisitions (buying existing operations)
Build-outs and renovations
Equipment and kitchen upgrades
Multi-unit expansions
Michigan is the #1 state for restaurant SBA loans. We know this industry inside and out.
Recent example: Ann Arbor restaurant group acquired downtown location for $725K (SBA 7(a) loan), turned profitable in 8 months.
Healthcare & Medical Practices
Physicians, dentists, chiropractors, veterinarians, and other healthcare providers throughout Michigan use SBA 7(a) loans for:
Practice acquisitions (buying out retiring practitioners)
Real estate purchases (medical office buildings)
Equipment financing (MRI machines, digital x-ray, dental chairs)
Practice expansions and build-outs
Recent example: Grand Rapids dental practice acquired retiring dentist's patient base and equipment for $950K (SBA 7(a) loan), added $800K annual revenue.
Construction & Trades
General contractors, specialty trade contractors, HVAC companies, plumbing operations, electrical contractors, and landscaping businesses use SBA 7(a) for:
Equipment purchases (excavators, trucks, specialized tools)
Business acquisitions (buying competitors or established routes)
Working capital for large projects
Real estate (yards, warehouses, shops)
Recent example: Metro Detroit HVAC contractor financed $425K in equipment and trucks (SBA 7(a) loan), increased capacity 40%.
Transportation & Logistics
Trucking companies, freight brokers, logistics operations, and specialized transportation services use SBA 7(a) for:
Truck and trailer purchases
Terminal and warehouse acquisitions
Business acquisitions (buying routes, contracts, operations)
Working capital and expansion
Recent example: Lansing trucking company financed $1.2M for 8 trucks and working capital (SBA 7(a) loan), grew fleet from 12 to 20 trucks.
Professional Services
Law firms, accounting practices, engineering firms, marketing agencies, consulting businesses, and other professional services use SBA 7(a) for:
Practice acquisitions (buying retiring partners out or acquiring firms)
Office space purchases
Working capital for expansion
Technology and equipment upgrades
Recent example: Detroit law firm acquired specialty practice for $875K (SBA 7(a) loan), added new practice area and $1.2M annual revenue.
Retail & E-Commerce
Brick-and-mortar retail, online businesses, franchises, and specialty shops use SBA 7(a) for:
Business acquisitions
Real estate purchases (retail locations)
Inventory financing
Multi-location expansion
Recent example: Grand Rapids specialty retailer purchased building for $650K (SBA 7(a) loan), stopped paying rent and built equity.
SECTION 11: SBA 7(a) SUCCESS STORIES – REAL MICHIGAN BUSINESSES
Manufacturing Acquisition – Sterling Heights
The business: 15-year-old precision machining company, $3.2M annual revenue
The challenge: Competitor with complementary capabilities came up for sale. Owner needed to act fast but didn't have $2M+ in cash.
The solution: $2.1M SBA 7(a) loan
Purchase price: $2,350,000
SBA 7(a) loan: $2,115,000 (90%)
Buyer equity: $235,000 (10%)
Term: 10 years, 9.8% interest
Monthly payment: $27,200
The outcome: Combined operations increased total revenue to $6.1M, achieved operating efficiencies, expanded customer base. Owner paid off loan in 7 years instead of 10.
Restaurant Acquisition – Grand Rapids
The business: Experienced restaurant manager ready to own his own operation
The challenge: Well-established restaurant for sale in prime location, but $750K price tag. Banks wanted 30% down ($225K) which buyer didn't have.
The solution: $675K SBA 7(a) loan
Purchase price: $750,000
SBA 7(a) loan: $675,000 (90%)
Buyer equity: $75,000 (10%)
Term: 10 years, 10.1% interest
Monthly payment: $8,920
The outcome: Buyer took over profitable operation with established customer base. Revenue increased 25% in first year through operational improvements. Business now worth $1.2M+ (60% increase in equity).
Medical Practice Acquisition – Ann Arbor
The business: Physician buying retiring doctor's practice
The challenge: $1.2M purchase price including equipment, patient records, and real estate. Needed comprehensive financing package.
The solution: $1.08M SBA 7(a) loan
Purchase price: $1,200,000
SBA 7(a) loan: $1,080,000 (90%)
Buyer equity: $120,000 (10%)
Term: 15 years (combination real estate and equipment), 9.9% interest
Monthly payment: $11,300
The outcome: Physician acquired established patient base generating $850K annual revenue, owns real estate building equity, maintained staff continuity. Practice now valued at $1.8M.
Equipment Financing – Metro Detroit Construction
The business: Growing excavation contractor, $2.5M annual revenue
The challenge: Needed $600K in heavy equipment to handle larger commercial projects but couldn't tie up that much cash.
The solution: $540K SBA 7(a) loan
Equipment cost: $600,000
SBA 7(a) loan: $540,000 (90%)
Buyer equity: $60,000 (10%)
Term: 10 years, 10.3% interest
Monthly payment: $7,140
The outcome: Secured $3.2M in new contracts requiring the equipment. Revenue increased to $4.1M in 18 months. Equipment paid for itself in under 2 years.
Working Capital & Expansion – Lansing Distribution
The business: Industrial supply distributor, $4.8M annual revenue
The challenge: Opportunity to expand into new territory and add product lines, but needed $750K for inventory, staffing, and marketing.
The solution: $750K SBA 7(a) working capital loan
Loan amount: $750,000
Term: 10 years, 9.7% interest
Monthly payment: $9,720
The outcome: Hired 6 new sales reps, expanded warehouse space, increased inventory depth. Revenue grew from $4.8M to $7.2M in 24 months. ROI on the loan exceeded 400%.
SECTION 12: SBA 7(a) FAQS – MICHIGAN BUSINESS OWNERS' MOST COMMON QUESTIONS
Can I use an SBA 7(a) loan to start a business in Michigan?
Yes, but it's more difficult than financing an existing business. Startups can qualify for SBA 7(a) loans if:
You're buying an SBA-approved franchise (significantly easier)
You have significant industry experience (typically 5+ years)
You have a comprehensive business plan with realistic projections
You're contributing substantial equity (typically 20-30%)
You have strong personal credit (typically 700+)
Most SBA 7(a) lenders prefer businesses with 2+ years of tax returns, but startup financing is possible with the right structure.
What if I was already declined by a bank for an SBA 7(a) loan?
A decline from one bank doesn't mean you don't qualify. It often just means:
Wrong lender for your situation (industry, credit profile, loan size)
Application wasn't packaged properly
Lender was at capacity or had portfolio limitations
Specific lender policy restrictions
We've successfully funded hundreds of Michigan businesses that were declined by other lenders. Different lenders have different criteria, and we know which ones to approach for your specific situation.
How long does it take to get approved for an SBA 7(a) loan in Michigan?
Typical timeline: 45-60 days from complete application to funding
Breaking it down:
Application and document gathering: 7-14 days
Pre-underwriting and lender selection: 7-10 days
Lender underwriting: 10-15 days
SBA approval: 5-7 days
Closing and funding: 7-10 days
Complex transactions (multiple properties, business acquisitions with complicated structures, environmental issues) may take 60-90 days.
SBA Express loans (up to $500K) can close in 30-40 days.
Can I get an SBA 7(a) loan with a 650 credit score?
Yes, but it's more difficult. Most SBA 7(a) lenders prefer 680+ credit scores, but 650+ is possible with:
Strong cash flow (DSCR of 1.5x or higher)
Significant collateral
Larger down payment (15-20%)
Long time in business (5+ years)
Strong business credit
Clean explanation for any credit issues
Below 650 becomes very challenging. At 620-650, you'll need exceptional compensating factors. Below 620, most lenders won't approve SBA 7(a) loans.
What's the maximum SBA 7(a) loan amount I can get in Michigan?
Maximum SBA 7(a) loan: $5,000,000
However, your actual maximum depends on:
Business cash flow (debt service coverage ratio typically needs to be 1.25x or higher)
Collateral available (lenders want 80-100% collateral coverage when possible)
Down payment (larger loans may require larger equity contributions)
Business strength (revenue, profitability, time in business)
Most Michigan businesses we work with secure $250,000 to $2,000,000 in SBA 7(a) financing.
If you need more than $5M, consider USDA B&I loans (up to $25M for rural Michigan businesses) or conventional financing.
Can I refinance my existing SBA 7(a) loan with a new SBA 7(a) loan?
Generally no—you cannot refinance one SBA loan with another SBA loan. SBA policy restricts this to prevent refinancing existing government-guaranteed debt with more government-guaranteed debt.
Exceptions:
Refinancing from SBA disaster loans to regular SBA loans
Refinancing non-SBA debt with SBA loans (perfectly fine)
Refinancing SBA debt with conventional loans (if you qualify)
If you need to restructure existing SBA debt, talk to your current lender about loan modifications or workout options.
Do I need an appraisal for an SBA 7(a) loan?
Real estate purchases: Yes, you'll need a full appraisal by a licensed appraiser.
Business acquisitions: Maybe. Business valuations are often required for acquisitions over $250,000. These can be done by:
Business valuation professionals
CPAs with valuation credentials
Industry-specific valuation experts
Equipment purchases: Typically no, unless you're financing very specialized or custom equipment.
Cost: Appraisals typically cost $2,500-$7,500 depending on property complexity. Business valuations range from $3,000-$10,000+.
Can I use an SBA 7(a) loan for a business outside Michigan?
Yes. While we specialize in Michigan businesses, SBA 7(a) loans can be used anywhere in the United States. If you're a Michigan business owner expanding into another state or purchasing an out-of-state operation, SBA 7(a) financing works.
However, our expertise and lender relationships are strongest for Michigan-based businesses and Michigan projects.
What happens if I want to sell my business before the SBA 7(a) loan is paid off?
The loan must be paid off at closing from the sale proceeds. This is standard for all business sales.
Process:
Business is listed for sale
Buyer is found and purchase agreement is signed
Buyer secures financing (often their own SBA 7(a) loan)
At closing, buyer's funds pay off your existing SBA loan
You receive remaining sale proceeds
Prepayment penalties: Most SBA 7(a) loans have minimal or no prepayment penalties, especially after the first 2-3 years.
Can I use an SBA 7(a) loan to buy out a business partner?
Yes, this is common. Partner buyouts are an approved use of SBA 7(a) proceeds. The loan finances the purchase of the departing partner's ownership stake.
Requirements:
Business must qualify (revenue, cash flow, credit)
Departing partner must agree to sale terms
Business valuation establishes fair market value
Remaining partner(s) must demonstrate ability to run business
Example: 50/50 partnership, one partner wants out. Business valued at $2M. Remaining partner gets $900K SBA 7(a) loan to buy out partner's $1M share (putting in $100K equity).
SECTION 13: READY TO GET YOUR MICHIGAN BUSINESS FUNDED WITH AN SBA 7(a) LOAN?
You've got a real business. You've got real revenue. You've got a clear plan for growth. Now you need capital to execute.
Stop wasting time with banks that will say no or take 4 months to say maybe.
Let's talk about your SBA 7(a) loan options and get you funded with better terms, faster timelines, and zero cost to you.
Three Ways to Get Started:
📞 Call Our Michigan SBA 7(a) Specialists
(855) 998-5874
Speak directly with an SBA loan expert who understands Michigan businesses and SBA 7(a) financing. Available Monday-Friday, 9am-6pm EST.
✉️ Email Your Situation
hello@sbaloansmichigan.com
Tell us about your business and what you need. We'll respond within 24 hours with preliminary feedback and next steps.
📝 Get Your Free SBA 7(a) Loan Quote
Fill out our form at the top of this page and we'll contact you within 24 hours with a preliminary assessment and lender options.
NEXT STEPS
Within 24 hours of contacting us, you'll know: ✓ Whether you qualify for SBA 7(a) financing
✓ Estimated loan amount based on your financials
✓ Preliminary rate and term expectations
✓ Timeline to funding
✓ What documentation you'll need
Within 7-10 days, you'll have: ✓ Your complete loan package prepared and packaged
✓ Multiple lender options to choose from
✓ Clear path to approval
Within 45-60 days, you'll be funded and ready to execute your growth plans.
ABOUT SBA 7(a) LOANS IN MICHIGAN
SBA 7(a) loans are the most versatile business financing tool available to Michigan companies. From business acquisitions to real estate purchases, equipment financing to working capital, the 7(a) program provides established Michigan businesses with the long-term capital they need to grow.
Based in Metro Detroit with deep Michigan roots, SBA Loans Michigan specializes in helping Michigan businesses navigate the SBA 7(a) loan process—from application through funding. We work with 25+ of the nation's most capable and aggressive SBA lenders to ensure you get approved at the best possible terms.
Over 20 years, we've facilitated over $1 billion in business financing for more than 10,000 companies nationwide, with particular expertise in the Michigan market.
Whether you're in Detroit, Grand Rapids, Ann Arbor, Lansing, or anywhere in Michigan, we understand your market and can help you secure the SBA 7(a) financing you need.
SBA Loans Michigan
Michigan's #1 SBA Loan Platform
📞 (855) 998-5874
✉️ hello@sbaloansmichigan.com
📍 Based in Metro Detroit | Serving All of Michigan
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SBA Loans Michigan is not a lender. We are a loan broker connecting Michigan businesses with SBA-approved lenders. All loans are subject to credit approval and SBA eligibility requirements.