Your Local SBA
|
Financing
Get Street Map & Driving Directions to Local SBA Financing Resources The 7(a) Loan Guaranty Program is the SBA's primary loan program. It is also the most flexible, since the agency can guarantee financing under the program for a variety of general business purposes. SBA can guarantee as much as 85% on loans up to $150,000 and 75% on loans of greater than $150,000. In most cases the maximum guaranty is $1,000,000. Through certified development companies, the 504 Certified Development Company Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Approximately 270 CDCs nationwide work with SBA and private-sector lenders to provide financing to small businesses. The PLP maximizes the use of qualified, private lenders in the agency's financial-assistance delivery system. Under this program, the SBA delegates loan approval, closing, and most servicing and liquidation authority and responsibility to carefully selected lenders. The PLP is designed only for the strongest credits. SBA loan approval is conducted at the SBA's PLP center in Sacramento, CA. Preferred loans receive the same 75% guaranty rate (85% on loans of $150,000 or less) as regular and certified SBA-loans. Preferred lenders may use certified or standard processing, if they wish. Preferred loans currently account for approximately 33% of SBA loans. The CLP provides expeditious service on loan applications received from lenders who have successful SBA track records and a thorough understanding of SBA lending policies and procedures. Under this program, the SBA reviews the lender's credit analysis rather than conducting a complete second analysis. Certified lenders, who account for 7% of all SBA loan guarantees, can submit applications under standard processing if they wish. The Microloan Program was developed to increase the availability of very small loans to prospective small business borrowers. Under this program, the SBA makes funds available to non profit intermediaries, who in turn make loans to eligible borrowers in amounts that range from under $100 to a maximum of $25,000. The average loan size is $10,000. Completed applications can usually be processed by the intermediary in less than one week. Makes it easier and faster for lenders to provide small business loans of $150,000 or less. Allows lenders to use their own forms and processes to approve loans guaranteed by the U.S. Small Business Administration. Provides a rapid response from the SBA - within 36 hours of receiving your complete application. Count on it! Lets lenders take advantage of electronic loan processing. Helps lenders provide smaller revolving loans. | ||