SBA Loan Programs
Working capital, equipment purchases, and business expansion expenses up to $5 million.
The SBA 7(a) program is SBA's primary business loan program for providing financial assistance to small businesses.
SBA 7(a) loans can be used for:
The maximum loan amount for a 7(a) loan is $5 million.
Before you apply, be sure that your business qualifies. To be eligible for a 7(a) loan, your business must:
Finance fixed assets, such as land or machinery up to $5 million.
504 loans work a little bit differently than other SBA loan programs. With a 504 loan, the bank will lend up to 50% of the loan amount, with 40% coming from a Certified Development Company (CDC) based in your area. You will be responsible for the other 10% plus loan costs.
Permissible purposes include the purchase or construction of existing buildings or land, new facilities, and/or long-term machinery and equipment. You may also use the funds to improve or modernize land, streets, utilities, parking lots, and landscaping for new or existing facilities.
The maximum loan amount under the 504 program is $5.5 million. For certain energy projects, the same borrower can have up to three projects for a total of $16.5 million in borrowing capacity.
Before you apply, be sure that your business qualifies. To be eligible for a 504 loan, your business must:
504 loans cannot be made to businesses engaged in non-profit, passive, or speculative activities. 504 loans may not be used for working capital, inventory, debt refinance, or real estate. Use the 7(a) program for those types of needs.
Fund working capital, inventory, supplies, and equipment up to $50,000.
The average microloan is about $13k. Microloans can be used for a variety of purposes, including working capital, inventory, supplies, furniture, fixtures, machinery, and equipment. Proceeds from a microloan may not be used to pay existing debts or to purchase real estate.
Repayment will be due in six years or less, and rates range from 8% to 13%.
Application requirements vary by lender. Contact us to assist you with your application.
Meet short-term and cyclical working capital needs.
CAPLines is a catch-all description for the several loans available under this program. One of the most popular loan programs right now is the SBA Express Working Capital Loan.
Actually falling withing the SBA 7(a) loan program, the SBA Express loans extend up to $500k for a range of business purposes, including working capital or equipment purchases, or to buy real estate or an existing business. A separate category for this loan is applicable to businesses primarily exporting goods.
Repayment terms are flexible and vary. Lines of credit may extend to seven years, while real estate loans can range up to 25 years. Five and ten-year terms are available for other loan types, including equipment loans.
Express loans under $25k do not have a collateral requirement, and some lenders will extend this up to $50k. Express loans close within 30-60 days on average. Since we deal primarily with SBA Preferred Lenders, processing times are quicker, because the deals don't have to go to SBA for approval, as the banks have authority to approve loans in-house.
Before you apply, be sure that your business qualifies. To be eligible for an SBA Express Loan, your business must:
Proceeds can be used for physical damage to real property or business contents. Funding can also be provided for Economic Injury through the EIDL program.
You will need to provide the following information on your application:
1. Organization type (e.g. Sole Prop, Partnership, C- or S-Corp, etc.)
2. Legal name of applicant
3. Employer ID Number (EIN)
4. Trade name if different from applicant's name
5. Business Phone number
6. Mailing address
7. Address of damaged property
8. Contact info
9. Misc business and insurance information
We can assist you with your application for disaster loans from the SBA.
