SBA 7a Loan Program

The SBA 7(a) loan program provides financial support to small businesses by guaranteeing loans up to 90% with a maximum loan amount of $5 million.

Use of Proceeds

• Real estate: Buy, refinance, or renovate buildings.
• Working capital: Cover short- and long-term operational costs.
• Debt: Refinance existing business debt.
• Equipment: Buy machinery
• Supplies: Purchase furniture, fixtures, and inventory.
• Ownership: Fund partial or complete business buyouts.

Eligibility Requirements

• Type: For-profit, U.S.-based operating business.
• Size: Must qualify as a small business under SBA rules.
• Must be a U.S. citizen

SBA 504 Loan Program

The SBA 504 loan program provides long-term, fixed-rate financing of up to $5.0 million for major fixed assets that drive economic development. It can go as high as $5.5 million for small manufacturing and green energy efficient projects.  It operates through a unique three-party structure: a conventional bank provides 50% of the loan, a non-profit Certified Development Company (CDC) provides 40%, and the business owner contributes a 10% down payment. For a $12.5 million project:

The bank lends $6.25 million (50%). the SBA lends $5 million (40%), and you contribute $1.25 million (10%).

Use of Proceeds

Funds must strictly go toward fixed, long-term assets:

• Real estate: Purchasing land, existing buildings, or building new facilities.
• Equipment: Buying heavy, long-term machinery

SBA Micro Loans

The microloan program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. The average microloan is about $13,000. SBA provides funds to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries administer the Microloan program for eligible borrowers. Microloans can be used for a variety of purposes that help small businesses expand. Use them when you need less than $50,000 to rebuild, re-open, repair, enhance, or improve your small business.

Use of Proceeds: 

• Working capital 
• Inventory 
• Supplies 
• Furniture 
• Fixtures 
• Machinery 
• Equipment