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SBA Loans - Small Business Administration - Programs - Rates

SBA loan programs are designed by the Small Business Administration (SBA) to lend to small businesses unable to secure financing on reasonable terms through normal lending channels. The SBA loan programs are operated through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA -- the Agency has no funds for direct lending or grants. Most private lenders (banks, credit unions, etc.) are familiar with SBA loan programs, so interested applicants should contact their local lender for further information and assistance in the SBA loan application process. Commercial Loan Direct offers SBA sponsored loans nationwide.

Here you will find brief descriptions of the primary loan programs available for funding from the U.S. Small Business Association (SBA). For detailed information, including qualifications, allowable uses of funds and interest rates.

7(a) SBA Loan Guaranty Program

In order to get a 7(a) loan, the applicant must first be eligible. Repayment ability from the cash flow of the business is a primary consideration in the SBA decision process but good character, management capability, collateral, and owner's equity contribution are also important considerations.

One of the SBA's primary programs, 7(a) offers loans of up to $2,000,000. (The maximum dollar amount the SBA can guaranty is generally $1 million.)

504 SBA Loan Program

Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically a 504 project includes a transaction secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower.

Certified Development Companies are designed to package, sell, and service the transactions.

Disaster Recovery Loans
If you are in a declared disaster area and are the victim of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration - even if you don't own a business. As a homeowner, renter and/or personal-property owner, you may apply to the Small Business Administration for a small loan to help you recover from a disaster. You can learn more about this product on its official website.

SBA Loan Express

The SBA Express Program is designed to deliver lines of credit up to $350,000. In general, businesses are expected to use the funds for development or expansion of for-profit companies-businesses with credit problems or a failure to consistently earn profits and pay bills will have a difficult time gaining SBA backing for any type of lending. The SBA-like any other concern involved in business finance-is not eager to support businesses that seem unlikely to succeed.

To have access to the SBA Express loan program borrowers must first meet the qualifying criteria for an SBA loan 7a. These criteria include limits to the size of the business, which types of businesses are eligible to apply and to the use of granted funds. CLD currently does not offer the Express program.