Financing
 

SBA Loan Product Comparison Chart

Under the SBA's loan-guaranty programs, the borrower applies to a lending institution, not the SBA. The lender applies to the SBA for a loan guaranty. The SBA can process the lender's request through a variety of methods. The following are used most frequently:

SBA's 7(a) Loan Programs 7(a) loans are the most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses.

NEW Patriot Express Loan Program

Patriot Express is available to military community members including veterans, service-disabled veterans, active-duty service members participating in the military’s Transition Assistance Program, Reservists and National Guard members, current spouses of any of the above, and the widowed spouse of a service member or veteran who died during service, or of a service-connected disability.   Patriot Express Lenders in Wisonsin

SBAExpress Loans - Participating Wisconsin Lenders  SBAExpress provides selected lenders with a 50 percent guaranty on their loans in exchange for the ability to use their own application and documentation forms. This method makes it easier and faster for lenders to provide small business loans of $350,000 or less. For more information on the SBAExpress Loan Program, visit www.sba.gov/services/financialassistance/7alenderprograms/sbaexpress/index.html 


CommunityExpress Loans - Participating Wisconsin Lenders Under this pilot, which is available to selected lenders, a SBAExpress like program will be offered to predesignated geographic areas serving mostly Low and Moderate Income areas and New Markets small businesses. The program will also include technical and management assistance, which is designed to help increase the loan applicant's chances of success.  Technical Assistance Providers. For more information on the Community Express Program, visit www.sba.gov/services/financialassistance/7alenderprograms/comexpress/index.html.

(7a) Guaranty Loan Programs Certified Lenders (CLP) and Preferred Lenders (PLP) are those who have been heavily involved in regular SBA loan-guaranty processing and have met certain other criteria. They receive a partial delegation of authority and are given a three-day turnaround by the SBA on their applications (they may also use regular SBA loan processing). Preferred/Certified lenders account for nearly a third of all SBA business loan guaranties. Maximum loan amount is $2 million, however, the maximum dollar that SBA can guaranty is $1.5 million. 

For additional information on the programs listed above and other 7(a) Loan Programs, visit: www.sba.gov/services/financialassistance/7alenderprograms/index.html

Certified Development Company (504) Loans - Wisconsin Lenders The 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community or region.  CDCs work with the SBA and private-sector lenders to provide financing to small businesses. Wisconsin has seven CDC's, each covering a specific area. Additional information on SBA's 504 loan program can be found at www.sba.gov/services/financialassistance/sbaloantopics/cdc504/index.html 


Wisconsin 7(m) Microloans Combines the resources and experience of the U.S. Small Business Administration with those of locally based nonprofit organizations to provide small loans and technical assistance to small businesses. Under the MicroLoan Program, the SBA makes funds available to qualified nonprofit organizations, which act as intermediary lenders. The intermediaries use these funds to make loans of up to $35,000 to new and existing small businesses. In addition, the intermediaries provide management and technical assistance designed to help ensure success.
The first step in applying for a MicroLoan is to contact one of our local intermediary lenders. 

For additional information on the Microloan Program, visit www.sba.gov/services/financialassistance/sbaloantopics/microloans/index.html.
 

Wisconsin Prequalification Loans This program is a change in the loan process where trained intermediaries assist minorities, women, veterans, rural businesses and selected industries develop viable loan application packages and secure loans. Loan amount cannot exceed $250,000. Maximum SBA guaranty is 85% for loans up to $150,000 and 75% for loans above $150,000. For more information on the Prequalification Loan Program, visit  www.sba.gov/services/financialassistance/sbaloantopics/prequalification/index.html. 

SPECIAL PURPOSE LOANS - http://www.sba.gov/services/financialassistance/SpecialPurposeLoans/

ExportExpress
Export Working Capital Program 
International Trade Loan 
Pollution Control
Employee Trusts
Delta
Caplines

Export Assistance - Wisconsin Export Assistance, contact: Jack Nevell, Regional Manager, International Trade Programs, U.S. Export Assistance Center, 200 Adams Street, Suite 2450, Chicago, Illinois 60606.  Tel: 312-353-8065, Fax: 312-353-8098.

Small Business Guide to Exporting Export Finance brochure

SBA can guarantee bonds for contracts up to $2 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels. SBA's guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby strengthens a contractor's ability to obtain bonding and greater access to contracting opportunities. A surety guarantee, an agreement between a surety and the SBA, provides that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract.

How do I Obtain a Guaranteed Bond?
Wisconsin Surety Bond Agents - SBA's contractual relationship as it pertains to the guarantee, is directly with the Surety Company or its agent and/or managing general agents. It is the surety who issues the bond to a small business contractor. Therefore, a small contractor must first find an agent or surety company.

Equity Investment

Small Business Investment Companies (SBIC) are licensed by the Small Business Administration. The SBICs are privately organized and privately managed investment firms. With their own capital and with funds borrowed at favorable rates through the Federal Government, SBICs provide venture capital to small independent businesses, both new and already established.  For entreprenuers looking for financing, visit http://www.sba.gov/aboutsba/sbaprograms/inv/esf/index.html

Wisconsin Investment Companies 

Grant Resources

SBA does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance.

Small Business Administration's Financing www.sba.gov/services/financialassistance/index.html 

Can I Qualify for a Loan - How To Apply.
This document identifies a number of credit and equity issues you will need to address if you are to obtain bank credit.

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