The Younger Law Blog

Summary of SBA Loans

Summary of SBA Loan Programs*

Most lenders are familiar with SBA loan programs so interested applicants should contact their local lender for further information and assistance in the SBA loan application process. Information on SBA loan programs, as well as the management counseling and training services offered by the Agency, is also available from the local SBA office. Synopses 7(a) Loan Guaranty The 7(a) Loan Guaranty Program is one of SBA's primary lending programs. It provides loans to small businesses unable to secure financing on reasonable terms through normal lending channels. The program operates through private-sector lenders that provide loans that are, in turn, guaranteed by the SBA � the Agency has no funds for direct lending or grants. Specialized 7(a): Low Doc Designed to increase the availability of funds of a maximum of $150,000 and streamline/expedite the loan review process. Specialized 7(a): SBAExpress (formerly FA$TRAK) Designed to increase the capital available to businesses seeking loans up to $250,000. Currently offered through September 30, 2005 as a pilot with a limited number of lenders. Specialized 7(a): CAPLines An umbrella program to help small businesses meet their short-term and cyclical working-capital needs with five separate programs. Specialized 7(a): International Trade If your business is preparing to engage in or is already engaged in international trade, or is adversely affected by competition from imports, the International Trade Loan Program is designed for you. Specialized 7(a): Export Working Capital Designed to provide short term working capital to exporters in a combined effort of the SBA and the Export � Import Bank. Specialized 7(a): Pollution Control Designed to provide loan guarantees to eligible small business for the financing of the planning, design, or installation of a pollution control facility. Specialized 7(a): DELTA Defense Loan and Technical Assistance is a joint SBA and DoD effort to provide financial and technical assistance to defense-dependent small firms adversely affected by cutbacks in defense. *Check for updates at Specialized 7(a): Prequalification Program A program that uses intermediaries to assist prospective low income borrowers, disabled business owners, new and emerging businesses, veterans, exporters, rural and specialized industries in developing viable loan application packages and securing loans. Specialized 7(a): Qualified Employee Trusts Designed to provide financial assistance to Employee Stock Ownership Plans. Specialized 7(a): Veteran's Loans The SBA has not been provided funds for direct loans to veterans, although veterans are eligible for special considerations under SBA's guaranty loan programs. Microloan Program This program works through intermediaries to provide small loans from as little as $100 up to $35,000. Certified Development Company (504 Loan) Program This program, commonly referred to as the 504 program, makes long term loans available for purchasing land, buildings, and machinery and equipment, and for building, modernizing or renovating existing facilities and sites.