The U.S. Small Business Administration helps small businesses get funding by setting guidelines for loans. These SBA-backed loans make it easier for small businesses to get the funding they need.
7 (a) Loans: A group of SBA loans which guarantee portions of the total amount, cap interest rates, and limit fees. This is the SBA’s most common loan program, which includes financial help for businesses with special requirements.
504 Loans: Long-term, fixed-rate financing to purchase or repair real estate, equipment, machinery, or other assets.
LOAN PURPOSE: Investment.
BORROWER TYPE: Business Owner.
QUALIFICATIONS: Minimum 1 year in business under existing ownership.
TERM: Different Options.
INTEREST RATE: Call for quote.
EXPERIENCE: Seasoned Curriculum.
FOREIGN NATIONS ACEPTED: Yes.
Am I eligible for 7(a) Loan?
- Operate for profit
- Be considered a small business, as defined by SBA
- Be engaged in, or propose to do business in, the United States or its possessions
- Have reasonable invested equity
- Use alternative financial resources, including personal assets, before seeking financial assistance
- Be able to demonstrate a need for a loan
- Use the funds for a sound business purpose
- Not Be delinquent on any existing debt obligations to the U.S. government
Am I eligible for a 504 Loan?
To be eligible for a 504 loan, your business must:
- Operate as a for-profit company in the United States or its possessions.
- Have a tangible net worth of less than $15 million.
- Have an average net income of less than $5 million after federal income taxes for the two years preceding your application.
- Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan.
Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to contact a Certified Development Company in their area.
How do I use a 504 loan?
A 504 loan can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of:
- Existing buildings or land
- New facilities
- Long-term machinery and equipment
- Or the improvement or modernization of: Land, streets, utilities, parking lots and landscaping
- Existing facilities
A 504 loan cannot be used for:
- Working capital or inventory
- Consolidating, repaying or refinancing debt
- Speculation or investment in rental real estate