7(a) loans are
offered to small businesses that have been
impacted by NAFTA. It is also used to
provide financial assistance to Employee Stock
Ownership Plans and help implement pollution
controls.
1.
CAPLines:
This can be up to $5,000,000. It is
administered under 4 different loan programs.
-
The Contract Loan Program: used to
finance the cost associated with
contracts, subcontracts or purchase
orders. Maturity based on contract
but no more than 10 years.
- The
Seasonal Line of Credit Program:
supports the buildup of inventory,
accounts receivable or labor and
materials. Revolving line of
credit.
-
The Builders Line Program:
provides financing for small contractors
or developers to construct or
rehabilitate residential or commercial
property. It has a 3-5 year
maturity period.
-
The Working Capital Line of Credit
Program: used for short-term
working capital. The amount can be
up to $5,000,000.
2. SBA Export Loan
Programs:
This loan program is designed to help develop or
expand export activities. There are
several types of Export Loans.
-
Export Express Loan Program:
offers up to $500,000 financing with a
36 hour approval window. Used to
enhance a company's export development.
Can be a term loan or revolving line of
credit.
-
International Trade Loan Program:
loan amount goes up to $5,000,000.
Used for fixed assets and working
capital for businesses to plan to start
or continue exporting.
3. Advantage
Loans:
there are three types of advantage loans: Small/Rural
Lender Advantage Loan, Community Advantage Loan
and the Small Loan Advantage.
The loan can be used for normal operations.
It is not a revolving line of credit.
4. Community
Advantage Approved Lenders:
The SBA maintains a list of Preferred Lender
Program (PLP) which includes many of the natin's
largest lenders who do high volumes of SBA
lending. They use a streamlined paperwork
process with delegated authority to approve
loans, which expedites the loan approval process
for small business owners and delegates the
final credit decisions to these lenders.
Use it to find an SBA lender near you.
5. Rural
Business Loans:
loans can go up to $350,000. It is
administered under a simplified process that
takes 3-5 days for approval.
6. SBA
Express:
loan amounts can from $150,000 to $350,000. It
can be used for starting or expanding a
business, equipment, working capital, inventory
or business occupied real estate purchases.
he business must be owned and
controlled (51 percent or more) by eligible
veterans and members of the military community
who want to establish or expand a small business
(including spouses).
The Certified
Development Company (CDC)/504 Loan Program
provides financing to small businesses for major
fixed assets such as equipment or real estate.
It cannot be used as working capital, inventory
or refinance debt. Loans can go up to
$5,000,000 with a 10 or 20 year maturity.
The SBA also provides
loans to small businesses that have been
affected physically or economically by a
declared disaster. There are different
types of Disaster Loans.
- Home and
Personal Property Loans:
loan amounts go as high as $200,000. It
can be used to replace or repair their primary
residence. Second homes or vacation
properties are not eligible.
- Business
Physical Disaster Loans:
loan amounts go as high as $2,000,000.
Nonprofit businesses can apply for this type of
loan as well. It can be used for real
property, machinery, equipment, fixtures,
inventory and leasehold improvements.
- Economic
Injury Disaster Loans:
loan amounts go as high as $2,000,000.
Interest will not exceed 4%. Loan term
will not exceed 30 years.
- Military
Reservist Economic Injury Loans:
loan amounts go as high as $2,000,000.
Provides funds to help an eligible small
business meet its ordinary and necessary
operating expenses that it could have met, but
is unable to, because an essential employee was
called-up to active duty in his or her role as a
military reservist. Collateral is required
for loans over $50,000.
The SBA also provides
loans to small businesses through it's Microloan
Program.
Microloans are loans
up to $50,000 that for-profit as well as not-for
profit businesses can apply for. The loan
may be used for working capital, inventory,
supplies, equipment.
The maximum repayment
term is 6 years. Interest rates vary
between 8-13%.
This loan is
administered by non-profit community-based
intermediaries. Some lending
intermediaries may require that you undergo some
type of training. To see a list of these
intermediaries click hereand scroll
to the bottom of the page.
To qualify for this
type of loan borrowers will have to provide
collateral and personal guarantees.
