The Small Business Association is dedicated to helping entrepreneurs, and small business owners make their dreams a reality by providing access to specific loans. While the SBA does not directly loan money, they do, however, guarantee the loans (all or part) that are provided by lenders making the lenders more willing to fund small businesses.
These types of loans include:
- 7(a) Loan Program– this is the most common loan program supported by the SBA. It offers the most flexible terms and qualifications, and borrowers can access up to $5 million in funding to be used for working capital, real estate, equipment, basic costs or even debt refinancing.
- Microloan Program – because many small businesses require funding that is lower than the limits set by lenders, the SBA established the microloan program to provide funding within the $500 to $50,000 range.
- CDC/504 Loan Program – this loan is for businesses looking to make a major fixed asset purchase (real estate, equipment, building renovation, etc.) up to $5 million. The loan payments can extend over 20 years, and the interest rates are based on current treasury rates.
These small business loans are exceptional opportunities for small businesses to gain access to favorable funding that may not have been available otherwise.