The SBA offers numerous loan programs to assist small business owners to start, manage and grow their businesses. Here are some of the most popular SBA loan programs:
SBA Express Program
Lower Interest Rates – Rates can be fixed or variable and are tied to the prime rate (as published in The Wall Street Journal), LIBOR, or the optional peg rate (published quarterly in the Federal Register), but they may not exceed SBA maximums
Flexible repayment options and longer terms than traditional loans
Borrow up to $350,000
Maximum SBA Guaranty is 50%.
Quick Turnaround – May receive a response to your application in less than 2 days.
Use the funds for working capital, equipment, inventory, or real estate purchases, or to expand facilities
SBA Patriot Express Pilot Loan
Loans for veterans and members of the military community wanting to establish or expand small businesses.
Can be used for a variety of proceeds including: Start up costs, Equipment purchases, Business-occupied real-estate purchases, Inventory, Managing your existing business…
Smaller credit requests, allowing expedited and streamlined application process
Line of credit or term loan up to $500,000
7(a) General Small Business Loans
Ideal for businesses that may not meet the conventional lending collateral or cash flow requirements
Often provide longer terms than conventional lending
Proceeds can be used to provide long-term working capital to use to pay operational expenses, accounts payable and/or to purchase inventory or to purchase equipment, machinery, furniture, fixtures, supplies or materials or to construct a new building or refinance existing business debt or even to establish a new business.
SBA guarantee limited to $1.5 million, $5 million maximum on the loan amount
Real Estate & Equipment Loans: CDC/504
This program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.
Applicant has a tangible net worth less than $15 million and an average net income less than $5.0 million after taxes for the preceding two years.
Provides growing businesses with long-term financing for purchasing land, constructing new buildings, expanding facilities, or purchasing long-term machinery and equipment
No working capital permitted
Maximum 504 debentures sizes: $5 million for regular loans; $5 million for public policy loans; $5.5 million for small manufacturer loans