SBA Loan

Business Loan made by a local bank that is guaranteed by the U.S. Small Business Administration - SBA.

What Is The SBA?

The SBA is the government administration established to help small business owners, either start-up entrepreneurs, or established businesses, who can not find conventional financing. It is easier to receive financing with the help of a government guarantee. These guarantees are given to lenders to help strengthen a loan in the eyes of the lender. The government does NOT lend the money. The SBA Loan Programs are only available in the United States.

What Types Of SBA Loans Are Available?

There are several types of SBA Loans available to fit almost all needs. The beauty of the SBA Loan Program is long term financing to help businesses who need smaller payments and a longer term to pay off the loan. If you are an established business there is no down payment required.

The primary loan program under SBA is the 7(a) Loan Guaranty Program. The giant real estate program is the 504 Loan Program.

The SBA Express Loan Program is available for businesses who are well established (3 years) with good credit and good debt service. The maximum loan amount is $350,000. These loans are usually given by a Preferred Lender (PLP) with a 50% guarantee from the government and are usually funded very quickly. These loans are usually credit scored.

The Export Working Capital Program for businesses exporting out of the country is done through the U.S. Export Assistance Center (USEAC).

Micro loan Programs are available through various community capital programs and can run from a few hundred dollars to the maximum amount of $25,000. These are for very small businesses and business needs.

The Patriot Express or the Veteran's Program, was set up to assist U.S. Veterans obtaining financing for businesses. These loans are up to $350,000 with an 85 % guarantee.

Small business Investment Company Program(SBIC)s are privately held, for profit, managed investment firms, licensed and regulated by the SBA to assist with investment capital or loans for start up or new product businesses.