Small Business Administration Loans
By BuildMyBiz on September 15th, 2012
If you’re planning to start a business or expand an existing business, you might need financing help. SBA participates in a number of loan programs designed for business owners who may have trouble qualifying for a traditional bank loan.
To start the process, you should visit a local bank or lending institution that participates in SBA programs. SBA loan applications are structured to meet SBA requirements, so that the loan is eligible for an SBA guarantee. This guarantee represents the portion of the loan that SBA will repay to the lender if you default on your loan payments.
The SBA Loan Application Checklist provides a listing of forms and documents you and your lender will need to create a loan package to submit to SBA.
Exclusive: Paychex Small Business Loan Resource Center
The following are direct links to information about commonly requested SBA programs:
Starting and Expanding Businesses
Gives 7(a) loans to eligible borrowers for starting, acquiring and expanding a small business. This type of loan is the most basic and the most used within SBA’s business loan programs. Borrowers must apply through a participating lender institution.
- Basic 7(a) Loan Program
Provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.
- Certified Development Company (CDC) 504 Loan Program
Offers very small loans to start-up, newly established or growing small business concerns. SBA makes funds available to nonprofit community based lenders which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.
- Microloan Program
Provide financial assistance to victims of disasters or to individuals in a declared disaster area. You may be eligible for this type of loan even if you don’t own a business.
- Disaster Assistance Loans
Assist small businesses, small agricultural cooperatives and nonprofit organizations as they recover from economic losses resulting from physical disaster or an agricultural production disaster.
- Economic Injury Loans
Export Assistance Loans
Provide exporters and lenders with a streamlined method of obtaining financing for loans and lines of credit up to $250,000. Lenders use their own credit decision process and loan documentation; exporters get access to their funds faster. SBA provides an expedited eligibility review with a response in less than 24 hours.
- Export Express
Offers loans targeted at businesses that are able to generate export sales but need additional working capital to support these opportunities.
- Export Working Capital
Gives term loans that are designed for businesses that plan to start/continue exporting or those that that have been adversely affected by competition from imports. The proceeds of the loan must enable the borrower to be in a better position to compete.
- International Trade Loans
Veteran and Military Community Loans
Provides financial assistance for veterans and members of the military community who want to establish or expand small businesses.
- Patriot Express Pilot Loan Initiative
Offers funds to eligible small businesses to meet ordinary and necessary operating expenses that could have been met, but are unable to meet, because an essential employee was “called-up” to active duty in their role as a military reservist.
- Military Reservist Economic Injury Disaster Loan
Special Purpose Loans
Help small businesses meet their short-term and cyclical working-capital needs through the SBA umbrella program called CAPLines.
Provides financing to eligible small businesses for the planning, design or installation of a pollution control facility.
- Pollution Control Loans
CAIP is a program established to assist U.S. companies that are doing business in areas of the country that have been negatively affected by the North American Free Trade Agreement (NAFTA). To be eligible, a business must reside in a county noted as being negatively affected by NAFTA, based on job losses and the unemployment rate of the county.
- U.S. Community Adjustment And Investment Program (CAIP)
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