Small Business Administration Financing Options

Written by Source: www.SBA.gov Tuesday, November 17 2009

The 7(a) program offers SBA guarantees on business loans provided by banks and other commercial lenders. Proceeds may be used to purchase real estate, machinery and equipment, inventory, along with working capital and debt refinancing.

The 504 program provides long-term, fixed-rate financing for long-term assets to increase productivity and create new jobs. Proceeds may be used to purchase real estate and equipment for a small business. Terms vary depending upon the use of loan proceeds. Interest rates also vary depending upon the size and term of the loan.

Under the new Recovery Act, there is a temporary elimination or reduction of fees for the SBA's 7(a) and 504 loan programs. This legislation also increases the maximum SBA guarantee on certain 7(a) loans from 85 percent to 90 percent.

8(a) business development assists small businesses owned and controlled by socially and economically disadvantaged individuals. Businesses must be able to provide a product or service that is purchased by an agency of the federal government. Orientation workshops for the 8(a) program are held each month at the district office.

SBA microloan program consists of five nonprofit intermediaries that provide loans of up to $35,000 to small businesses.

Women’s Business Centers are nonprofit agencies created to help people start, grow, and expand their small businesses.

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Source: www.sba.gov