Small Business Administration Loans
Is your business eligible for Small Business
Administration sba loans
other financial assistance?
Understanding the services of the Small Business Administration
loans and financing is very important. SBA is the Federal
Government’s independent agency that provides assistance to US small
businesses in areas of procurement, advocacy, management and financial
Small Business Financing is issued through SBA's
Guaranteed Loans investment programs, loans for small business,
disaster loan programs, and also contractor’s bonding. Also, Sub Loans
and Small Business financing are significant areas of assistance.
main aim of the Small Business Administration is to strengthen and
maintain the economy of the US by counseling, aiding, protecting, and
assisting the interests of small businesses and by helping businesses
and families to recover from national disasters.
is important to note that the Small Business financing programs of the
Small Business Administration offer assistance and loans for small
business that may not be able to qualify for any assistance and loans
through the traditional banks and lending sources.
If a business
can get funds on good reasonable terms from these traditional banks and
other sources, then the Small Business Administration may not guarantee
a small business loan.
Basic Type of SBA Loan Programs
The three basic type of (SBA) Small Business Administration Loans programs are:
Basic Section 7(a) – Loan guaranty program – which helps small business
financing when the business is not eligible for loans through
traditional banks and lending sources. Loans under this program are
only available on a “guaranty basis” on a portion of the loan. This
guaranty will protect against default in payment.
Section 7(m) loan program is a Micro Loan program. The Section
7(m) Microloan program features short-term loans of up to $35,000. This
loan is applicable to small businesses and not-for-profit child-care
centers and can be used for working capital or purchase of inventory,
supplies, and equipment.
- The SBA 504 Loan Program is the Certified Development Company Program.
It is intended to help small and medium-sized businesses. This is a
long-term loan with fixed rate financing for investing in fixed assets.
The objective behind this program is to increase employment
To get a loan under any of the loan programs
you must meet all criteria and submit an accurate application. The
SBA uses the usual Basic Section (7a) criteria for eligibility which
are designed to cover a large number of needs of small business
Small Business Administration loans application should explain in detail the following 7(a) Loan programs criteria:
Type and size of business
Use of finances
Other available funds
The following criterion also qualifies a small business to be eligible for the loan assistance:
Construction – annual receipts and sales of three years
Mining and Manufacturing: 500 employees or less
Service or Retail: three year annual receipts and sales
Special Trade Contractors: up to $14million
Wholesale: 100 employees or less
Agriculture: up to $75millionPlease
be aware that small business loan applications from religious,
charitable, and non profit organizations, gambling and illegal
activities, lending, etc are not eligible for the small business loans.
from Small Business Administration Loans
Loans for Small Businesses