SBA Commercial Loan

SBA Commercial loans Types

** 7(a) Loan Guaranty Program. One of the SBA's primary loan programs, 7(a) offers loans of up to $2,000,000. (The maximum dollar amount the SBA can guaranty is generally $1 million.)

**Certified Development Company (CDC), a 504 Loan Program Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization.

**Microloan Program The Microloan program offers loans of up to $35,000 to qualified start-up, newly established, or growing small business concerns. Loans are arranged through nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers.

**Disaster Recovery Loans If you are in a declared disaster area and are the victim of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration

**America's Recovery Capital Loan Program (ARC) SBA's America's Recovery Capital Loan Program can provide up to $35,000 in short-term relief for viable small businesses facing immediate financial hardship to help ride out the current uncertain economic times and return to profitability.

SBA Commercial Loan Application Strategy

A strong business plan. The SBA main loan criteria is your business' capacity to generate cash flow for the repayment the loan.

The borrower must have a stake in the business. The SBA wants to see you invested in your own business.

A good personal credit rating. The credit history serves as a person's gauge for credit worthiness. Your track record in paying your bills will form an important component in the loan application process.

Collateral. Borrowers are required to provide collateral for SBA guaranteed loans. Collateral can be in the form of real estate or personal property.

Your background and experience in the business. Management capability is a key criteria for banks and SBA-guaranteed loans.