SBA programs.Here are some of the loan programs offered by the SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government . For a complete list and details on how to apply, visit www.sba.gov. 7(a) Loans: The primary SBA loan program helps small businesses that might not be eligible for loans through normal lending channels. Money can be used for a variety of business purposes. The loans are made through commercial lenders Whilst nearly all lenders offer loans on a commercial basis the term commercial lender has differed meanings around the world.
504 Loans: Made through a certified development company, a 504 loan provides long-term, fixed-rate financing for real estate, machinery or equipment. Typically, the loan involves a private-sector lender with a senior lien senior lien n. the first security interest (lien or claim) placed upon property at a time before other liens, which are called "junior" liens. (See: mortgage, deed of trust, lien, UCC-1) , a certified development company and at least 10 percent equity from the borrower. A list of CDCs is on the SBA Web site. Microloans: Provide short-term loans of up to $35,000 for working capital or purchases, but can't be used for real estate. The loan is through a nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. community-based lender, which also provides assistance to the small business. The typical microloan mi·cro·loan n. A very small, often short-term loan made to an impoverished entrepreneur, as in an underdeveloped country. size is $10,500. A list of microloan intermediaries is on the SBA Web site. International Trade Loans: An applicant must establish that the loan will significantly expand or develop an export market and that it is currently adversely affected by import competition. Proceeds can be used to upgrade equipment or facilities to be used in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. to improve competitive position. Export Working Capital: Provides short-term working capital when export financing is not available elsewhere on reasonable terms. Disaster Assistance Loans: Small businesses that have suffered substantial economic injury from a physical disaster may be eligible. The SBA provides this assistance to businesses it determines are unable to obtain credit elsewhere. The SBA can provide up to $1.5 million in disaster assistance to a business. SBA also provides disaster assistance to individuals. SBA Lending Activity * TYPE OF LOAN FY 2003 FY 2004 FY 2005 7(a) $9,750 $11,944 $13,998 504 $2,845 $3,692 $4,942 International Trade $447 $627 $804 Microloan $30 $23 $20 * Value of loans funded (in millions) Source: SBA 2005 Performance and Accountability Report |
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