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QUICK REFRENCE TO SBA LOAN GUARANTY PROGRAMS |
Program |
Maximum Loan Amount |
Percent of Guaranty |
Use of Proceeds |
Maturity |
Maxium Interest Rates |
Guaranty Fees |
Who Qualifies |
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| 7(a) Loans Regular 7(a) and PLP |
$2 million gross($1.5 million guaranty) | Maxium guaranty of 75% up to $1.5 million; 85% if gross loan is 150,000 or less. | Expansion/renovation; new construction, pruchase land or buildings; purchase equipment, fixtures, lease-hold improvements; working capitial; refinance debt for compelling reasons; seasonal line of credit, inventory | Depends on ability to repay. Generally working capitial & Machinery & Equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years | Loans 7 years or less: max prime +2.25%; over 7 years: prime +2.75%; under $50,000, rates can be higher by 2% for loans of $25,000 or less; and 1% for loans between $25,000 and $50,000. Prepayment penalty for loans with maturities of 15 years or more if prepaid during 1st 3 years. | (Fee charged on guaranteed protion of loan only.) Maturity 1 year or less 0.25% guaranty fee; over 1 year: $150,000 gross amount) or less = 2%; $150,001 - $700,000 = 3.0%; over $700,000 = 3.5%. 3.75% or guar. portion over $1 million. Ongoing fee of 0.494% | Must be for profit & meet SBA size standards; show good character; credit, management, and ability to repay. Must be an eligible type of business. | |
| www.sba.gov/financing/sbaloan/7a.html | ||||||||
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| SBAExpress Lender minimal paperwork for SBA | $350,000 | 50% | May be used for revolving lines of credit (up to 7 year maturity) or for a term loan (same a 7(a)). | See 7(a) | Loans $50,000 or less prime + 6.5%; $50,000 + Prime + 4.5%. | See 7(a) | See 7(a) | |
| www.sba.gov/financing/lendinvest/sbaexpress.html | ||||||||
| Community Express. Same as Regulr 7(a) but must be located in alow or moderate income urban or rural area, or owned by a manority woman or veteran. | $250,000 | 85% of loans of $150,000 or less. Loans over $150,000 recieved a 75% guaranty | See 7(a) | See 7(a) | Same as 7(a) except that lines of credit may resolv for only5 years and must be repaid within no more than 7 years. | 2% on guaranteed portion of loans up to $150,000; 3% on th guaranteed portion of loans more than $150,000 1/4% for lines of credit up to one year. | No SBA application required Bank has delegated authority. Program provides Technical Assistance as neede for marketing, financial, management and planning. | |
| www.sba.gov/services/financialassistance/7aLenderprograms/comexpress/index.html | ||||||||
| Patriot Express Lender approves loan. Minimal additional paperwork for SBA. | $500,000 | Maximum guaranty of 75% up to $375,000; 85% if gross loan is %150,000 or less. | Same as SBA Express | See 7(a) | Same as Regular 7(a) | See 7(a) | See 7(a). In addition required. busness must be owned and controlled by one or more of the follwing groups: veteran, active-duty military, reservist, or national guard member or a spouse of any of these groups, or widowed spouse of a service member or veteran who died during sercive or of a service-connected disability | |
| www.sba.gov/services/financialassistance/7aLenderprograms/index.html | ||||||||
| CAPLines: Short-term/ Revolving Lines of Credit; Seasonal Contract Builders statdard/ Smal Assest-Based | $2 million (small assest based limited to $200,000) | 75% if more than $150,000 85% if total loan is $150,000 or less. | Finance seasonal working capitial needs; cost to perform; construction costs, advances against existing inventory and receivables, consolidation of short-term debts. | Up to 5 years | Same a 7(a) except the Stadard Asset-Based no fee restriction, but fee to SBA required. | See 7(a) | See 7(a) Existing Business. | |
| www.sba.gov/financing/lendinvest/caplines.html | ||||||||
| International Trade | $2 million (Seperate working capitial loan plus IT loan together may have $1.75 million combined guaranty.) | 75% if more than %150,000 85% if total loan is $150,000 or less. |
IT loan must be used only for the aquisition of long-term, fixed assests or the refinancing of debt for these purpose. Seperate working capitial loan may be used for working capitial needs associated with international trade. | Up to 25 years. | See 7(a) | See 7(a) | Small businesses (see7(a) for qualifications ) engaged/preparing to engage in international trade/adversely affected by competition from imports | |
| www.sba.gov/financing/loanprog/tradeloans.html | ||||||||
| Export Working Capital program 1 page application, fast turnaround, may apply for prequalification letter. |
$2 million (may be combined with International Trade loan.) | 90% up to 1.5 million maximum guaranty | Short-term working capitial loans for exports. | Matched single transaction cycle or generally 1 year for line of credit. | No cap | See 7(a) | Small businesses 7(a) for other qualifications , those who need short-term working capitial. | |
| www.sba.gov/financing/loanprog/ewcp.html | ||||||||
| Non-7(a) loans Microloans |
$35,000 (total loan amount to small busniess borrower | Not applicable | Purchase Machinery & Equipment, fixtures, leasehold improvements; finance increased receivables; Working Capitial. Cannot be used to repay existing debt. | Shortest term possible, not to exceed 6 years. | Negotiable with intermediary | No guaranty fee | See 7(a) | |
| www.sba.gov/financing/sbaloan/microloan.html | ||||||||
| 504 loans provided through Certified Development Companies (CDCs) which are licensed by SBA. | 504 loan maximum amount ranges from $1.5 M to $4.0 M depending on project. | Projects Costs financed by: 504 Loan up to 40% Lender: 50% Equity 10-20% | Long-term fixed-assest loans; Lender (non-guaranteed) financing secured by first lien on project assets. 504 loan provided from SBA 100% guaranteed debenture sold to inverstors at fixed rate secured by 2nd lien | 504 Loan: 10-or 20-year term. Lender (unguaranteed) financin may have a shorter term. | Fixed rate on 504 Loan established when debenture backing loan is sold. Declining prepayment penalty for 1/2 of term. | 0.5% upfront fee to SBA on the first mortgage amount. Ongoing guaranty fee. (FY 2008) is 0.021% of principal O/S Ongoing fee % does not change during term. |
For profit businesses that do not exceed $75 million in tangible net worth and do not have average net income over $2.5 M for past 2 years. | |
| U.S. Small Business Administration • Your Small Business Resource • Information current as July 2007 • SBA programs and services are provided on a nondiscriminatory basis • MCAxxxx. |