SBA Loans
Small Business Administration (SBA) CDC/504 Loans
What is it? SBA CDC/504 loans provide long-term, fixed-rate financing for major assets such as land, buildings, parking lots, and improvements on existing facilities, streets, and utilities, and modernization projects. It allows smaller companies to access the kind of capital typically only available to larger businesses. Benefits include a relatively low down payment, fixed rates, long terms, and low interest rate. This program is used to support economic development.
Who's eligible? Businesses and communities may apply for a CDC/504 loan. The applicant must be a small manufacturer or meet a public policy goal. Public policy goals include business district revitalization, expansion of exports, minority and veteran-owned business development, rural development, and more.
How much is available? The maximum amount for applicants meeting job creation criteria or public policy goals is $1.5 million. The maximum loan amount for small manufacturers is $4.0 million.
What are the terms for agreement? The job creation criteria is as follows:
- A business must create or retain one job for every $50,000 borrowed.
- A small manufacturer must create or retain one job for every $100,000 borrowed. (Small manufacturers may be eligible due to economic impact on the community or through public policy goals as well.)
Click here for more information on the SBA CDC/504 loan program.
Small Business Administration (SBA) 7A Loans
What is it? SBA 7A loans are commercial loans made through participating financial institutions. The loan is made under guaranty by SBA of a portion of the loan.
Who's eligible? Qualifying applicants must meet the eligibility requirements of the financial institution, as well as SBA criteria, as follows:
- Size
- Eligible And Ineligible Types Of Business
- Use Of Proceeds
- Availability Of Funds From Other Sources
How much is available? The maximum loan amount for an SBA 7A loan is $2 million. SBA will assume exposure at a maximum of $1.5 million.
What are the terms for agreement? Interest rates are subject to SBA maximums, and may be fixed or variable.
Click here for more information on the SBA 7A loan program.
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