SBA LOANS
SBA GUARANTEED LOAN PROGRAM - 7A

  • SOURCE: From Lending Institutions.. SBA Guaranteed
  • ELIGIBILITY: For-Profit Businesses (Some Exceptions)
  • RATE: Less Than 7 Years = 2.25%max + NY Prime Rate More than 7 Years = 2.75 max + NY Prime Rate Under $50,000 Loan, Lender May Charge an Extra Point
  • COLLATERAL: Personal Guarantee by Owners. Lien on Business or PersonalAssets if needed.
  • AMOUNT: SBA Guarantee = 85%-90% up to $500,000 Usual Minimum is $50,000.
  • FEES: 2% of Guaranteed Portion
  • OTHER: SBA Usually Requires owner to inject 1/3 to 1/2 Cash and/or Assets if a New Business
  • OTHER: Pamphlet "Business Loans From the SBA". Attend SCORE Seminars. See your SBA Authorized Banker for Specific Requirements

SBA SMALL LOAN PROGRAM

  • SOURCE: From Lending Institutions.. SBA Guaranteed
  • ELIGIBILITY: For-Profit Small Business (Some Exceptions)
  • RATE: By Negotiation With Lender
  • COLLATERAL: Personal Guarantee by Owners. Lien on Business or Personal Assets if Needed.
  • AMOUNT: $50,000 or Less and 90% SBA Guarantee
  • FEES: 2% of Guaranteed Portion
  • OTHER: A New Simplified Short Form SBA #4 is Available to Facilitate This Program
  • INFO: See SBA Fact Sheet #40-00.04.Attend SCORE Seminars. See your SBA Authorized Banker for Specific Requirements

MINORITY PRE-QUALIFICATION PILOT LOAN PROGRAM

  • WHAT IT IS: Provides minority assistance in qualifying by providing intermediaries selected by SBA to help prepare and review business plan and pre-qualification loan application. If qualified, SBA will authorize a loan guarantee which is presented to a competitive lender with assistance by the intermediary.
  • ELIGIBILITY: At least 51% owned by racial/ethnic minority. Must meet 7(a) loan eligibility and size criteria.
  • INTEREST RATE: Same as 7(a) loans. Maturity also similar.
  • AMOUNT: Generally the maximum loan is $155,000
  • CREDIT and Willingness/ability to pay debts. Good credit.
  • COLLATERAL: Likelihood for success. Must pledge business/personal assets and personally guarantee loan. Loan may not be denied if inadequate collateral is the only negative.
  • FOR INFORMATION: Contact CDC Small Business Finance Corp. 714-978-1182 or 909-352-5730

SBA LOWDOC LOAN PROGRAM

  • SOURCE: SBA-Approved Banks..If Approved, SBA Guarantee to 90%
  • ELIGIBILITY: Approval Based on Character, Credit, and Business Experience. Can be Used for Existing Business, Purchase of a Business, or Start-Up
  • AMOUNT: To $100,000
  • OTHER: This is a New Program, Emphasizing User-Friendly Applications, Rapid Response. Comprehensive Business Plan Not Needed for Existing Business but Needed for Start-ups. Provides Streamlined Application for Loans Under $100, 000.
  • INFO: See LowDoc Fact Sheet and List of Approved Banks.

SBA CONTRACT LOAN PROGRAM

  • SOURCE: From Lending Institution.. SBA Guaranteed
  • ELIGIBILITY: Contractor/Sub-Contractor in Construction, Manufacturing, or Service Industries
  • RATE: By Negotiation With Lender
  • COLLATERAL: Assignment of Contract Proceeds, Personal Guarantee by Owners, and Outside Assets
  • AMOUNT: SBA Guarantee 85% to $750,000 and to 90% for Loans to $155,000
  • OTHER: This is a Short-Term Non-Revolving Loan for Labor and Materials for a Specific Project. Requires Business in Operation 12 Months,
  • INFO: See SBA Fact Sheet #53 .Attend SCORE Seminars.See your SBA Authorized Banker for Specific Requirements

SBA EXPORT REVOLVING CREDIT LINE

  • SOURCE: From Lending Institution.. SBA Guaranteed
  • ELIGIBILITY: For-Profit Small Business(Some Exceptions) Must be Current on All Payrolls.In Business 1 yr min.
  • RATE: By Negotiation With Lender.
  • COLLATERAL: Receivables, Inventory, Letters of Credit, all Under Jurisdiction of U.S. Courts.
  • AMOUNT: Guaranteed to $780,000 or 85% of Loan
  • FEES: Up to 1/4% of Guarantee
  • TERM: 36 Months Maximum
  • OTHER: Estimated Cash Flow Statement Required. Monthly Progress Report Required Also.
  • INFO: See SBA Fact Sheet #51. Attend SCORE Seminars.See your SBA Authorized Banker for Specific Requirements

NOTE: NY PRIME RATE IS PUBLISHED IN WEST COAST EDITION OF THE WALL STREET JOURNAL

THERE ARE NO LONGER LOANS SPECIFICALLY FOR VETS. THERE ARE NO SBA LOANS WHICH TARGET WOMEN. THE 8(A) PROGRAM PROVIDES ADVANTAGES TO WOMEN AND MINORITIES WHEN SELLING TO THE GOVERNMENT, BUT FOR BUSINESSES THAT ARE MORE THAN TWO YEARS OLD.

EXPORT WORKING CAPITAL PROGRAM (EWCP)

SBA's new loan program provides funds for the purchase of goods or services for export purposes or to support the collection of foreign receivables. The new EWCP has a maximum guarantee of 90% and a maximum amount of $750, 000. The application has been streamlined to allow a faster processing time.

INTERNATIONAL TRADE LOANS (IT)

IT provides assistance to businesses presently engaged or preparing to engage in international trade and to businesses adversely affected by import competition. The maturity on an IT loan is the same as on other SBA loans (from 5 to 25 years). The maximum SBA exposure is $1,250,000 for facilities and working capital.
 
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