SBA Loan

SBA Loans are the best alternative to those increasingly elusive grants for starting or expanding a small business. While some grants are available through the states, these grants are not always “free money,” and most require the recipient to match the funds awarded or combine the grant money with other forms of financing such as SBA loans.

The SBA does not make loans directly to the public. You will need to contact your bank or lending institution to initiate an SBA loan. Your bank will submit your loan package to the SBA and service your loan in the future.

SBA provides a number of financial assistance programs for small businesses including:

7(a) Loan Guaranty Program
One of the SBA's primary loan programs, 7(a) offers loans of up to $2,000,000. (The maximum dollar amount the SBA can guaranty is generally $1 million.)

Certified Development Company (CDC), a 504 Loan Program
Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower.

Microloan Program
This new program offers loans of up to $35,000 to qualified start-up, newly established, or growing small business concerns. Loans are arranged through nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers. The entire Microloan process is handled on the local level, but you must go to one of the local intermediaries to apply.

Disaster Recovery Loans
If you are in a declared disaster area and are the victim of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration - even if you don't own a business. As a homeowner, renter and/or personal-property owner, you may apply to the SBA for a loan to help you recover from a disaster.

Veterans & Disabled Persons?
Unfortunately, the SBA has not been granted funds to offer special loan programs to assist either veterans or disabled persons. However, individuals of both groups are eligible for all SBA loan guaranty programs. In addition, veterans are eligible for special consideration under SBA's guaranty loan programs. The special consideration given veterans includes: Liaison personnel in each field office; In-depth management counseling and training assistance; and, Prompt and priority processing of any loan application.

How to apply
Like any loan, an application for a loan guaranteed by the U.S. Small Business Administration involves forms and documentation. When you apply for an SBA loan to start or expand a small business, you will be required to provide the these documents