Last month St. Louis District Office staff received good questions from two different eastern Missouri lenders. We address them here.
Q: Will SBA consider guarantying a loan as small as $30,000 loan for working capital to a start-up business?
A: SBA has no minimum guaranty amount for any of its loan programs. This might be a good candidate to submit under one of SBA's expedited loan programs. During the past 36 months SBA has guaranteed 75 loans by 8 different commercial lenders to eastern Missouri-based small businesses for $10,000, or less. The smallest eastern Missouri 7(a) loan SBA has guaranteed since July 1, 2010 was for $5,000.
Q: Will SBA process 504 loan guarantees for Certified Development Companies (CDCs) for less than $300,000?
A: Absolutely! Over the past 36 months SBA has guaranteed 15 loans for CDCs that serve eastern Missouri that total less than $100,000. During that period the smallest 504 loan guaranteed across eastern Missouri was for $57,000, with several totaling less than $80,000.
View SBA’s Active Lender List for Eastern Missouri, for contact information of Certified Development Companies active across the St. Louis District service area. If it has been a while since you worked with an area CDC, please give one a call to see if the project you’re considering would be a good fit for the 504 loan program. The same list includes SBA Micro Loan Intermediary, Justine Petersen (JP), which is active across Missouri. Please feel free to contact JP if you have a client who is creditworthy but whose loan request is less than your bank’s minimum loan amount.
Please contact Tom Daiber, Bill Vickery or Bob Newman if you have questions about SBA’s expedited loan programs that may reduce the amount of time to originate SBA-guaranteed loans or about any SBA loan program.