SBA Loan Guarantee Programs
The U.S. Small Business Administration (SBA) operates loan guarantee programs that enable small businesses to obtain loans that otherwise would not be possible.
The loans fall into the following categories:
- General Small Business Loans [previously known as 7(a) loans]. This the most common type of SBA guaranteed loan.
- Real Estate & Equipment Loans (previously known as 504 loans). This program provides financing for major fixed assets, which is typically real estate and equipment.
- Micro Loans. This program provides small, short-term loans.
- Disaster Loans. Provides low-interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters to aid in recovery of major disasters such as hurricanes or floods.
Go to https://www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs for general information on these types of financing and for contact information.
Additional resources to consider
LINC provides an online mechanism to connect prospective borrowers with SBA approved lenders.
When accessing LINC, you will need to answer a few questions about your business. We’ve included those here for your reference. They are also provided at the website under StepONE. Contact us if you need assistance. We work with small businesses to look at pitch decks, business model canvases, and business plans, all of which will help you prepare to pursue loans under SBA programs.
SBA LINC Business Questions
- How many years has the business been in existence?
- How many employees does the business have?
- What is the business' estimated annual revenue?
- Is the business a for-profit business?
- What is the business type?
- What is the total amount of financing that you are seeking?
- How will you use the money?
- Is collateral available to support the loan?
- Are you interested in receiving business advisory services (technical assistance)?
- Do you have a written business plan?
- Have you applied for a loan with another financial institution?
- Please provide a description of the current status of the business highlighting the reasons why you need financing (1000 characters or less).