The 7(a) Loan Program, SBA’s primary business loan program, provides loan guaranties to lenders that allow them to provide financial help for small businesses with special requirements. 7(a) loans can be used for many different purposes, as described elsewhere on this page.
The SBA 504 loan program is a long-term financing option for small businesses to acquire major fixed assets like real estate, land, and heavy machinery. The 504 loan program involves a three-part structure: a conventional loan from a bank (the third-party lender), a second mortgage from an SBA-backed Certified Development Company (CDC) (the SBA portion), and a borrower down payment. Benefits include low down payments, long terms, and fixed interest rates, while eligibility is based on criteria such as the business’s net worth and job creation or other public policy goals.
Other goverment-guaranteed loan programs include:
There are many factors to consider when deciding whether to participate in an SBA or other government guaranteed loan program. And, because of the special purposes and qualifications of these programs, there are often challenges in getting the loan closed. Having handled and closed numerous loans involving these programs, the Firm is extremely knowledgable and exceptionally qualified to assist its lender and borrower clients with transactions under any of them.
The 504 Loan Program provides long-term financing to help businesses with a wide range of needs at very competitive interest rates.
Restrictions:
504 funds cannot be used for working capital, inventory, debt consolidation/repayment, or (with limited exceptions) refinancing.
As with 7(a) loans, specific eligibility requirements and conditions apply. Please contact the Firm or visit the SBA website at www.sba.gov for detailed information on loan amounts, uses of funds, and other terms. To learn more, visit our SBA Frequently Asked Questions page.
The SBA 7(a) Loan Program provides flexible financing to help businesses with a wide range of needs. Loan proceeds may be used for:
Eligibility requirements and loan conditions are highly specific and must be met to qualify. For details on loan amounts, eligible uses of funds, and other terms, please contact our Firm or visit the SBA website at www.sba.gov. To learn more, visit our SBA Frequently Asked Questions page.
