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SBA Loans

SBA7a

What is a 7(a) loan?

The 7(a) Loan Program, SBA’s most common loan program, includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for:

  • Short- and long-term working capital
  • Refinance current business debt

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.

How do I use the 7(a) loan?

Basic uses for the 7(a) loan include:

  • Long- and short-term working capital
  • Revolving funds based on the value of existing inventory and receivables
  • The purchase of equipment, machinery, furniture, fixtures, supplies, or materials
  • The purchase of real estate, including land and buildings
  • The construction a new building or renovation an existing building
  • Establishing a new business or assisting in the acquisition, operation or expansion of an existing business
  • Refinancing existing business debt, under certain conditions

SBA 504

What is the 504 loan program?

The CDC/504 Loan Program provides long-term, fixed rate financing of up to $5 million for major fixed assets that promote business growth and job creation. 504 loans are available through Certified Development Companies (CDCs), SBA's community-based partners who regulate nonprofits and promote economic development within their communities. CDCs are certified and regulated by the SBA.

How do I use a 504 loan?

A 504 loan  can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:

  • Existing buildings or land
  • New facilities
  • Long-term machinery and equipment

Or the improvement or modernization of:

  • Land, streets, utilities, parking lots and landscaping
  • Existing facilities

  • Working capital or inventory
  • Consolidating, repaying or refinancing debt
  • Speculation or investment in rental real estate

 

SBA 7(a) Loan Comparison

SBA 7(a) Standard Loan

You can get a loan of up to $5 million. SBA guarantees 75% to 85% of this loan.

SBA 7(a) Small Loan

For loans of up to $350,000.

SBA 7(a) Express Loan

For loans under $350,000. The SBA will only guarantee 50% of this loan.

SBA 504 Loan

This loan is used for economic development and can’t be used for working capital or inventory. It often has a lower down payment and lower fees.

SBA 7(a) CAPLines Loan

This is a line of credit for businesses’ cyclical or short-term needs.

SBA Export Working Capital Program Loan

For businesses that can generate export sales and that need additional working capital to support these sales.

SBA Export Express Loan

This loan gives exporters and lenders a more efficient way to get financing backed by the SBA for loans and lines of credit of up to $500,000.

SBA Veterans Advantage Loan

For veteran small business owners (the veteran must own 51% of the business).



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