SBA Loan Insurance Information
The primary types of SBA loan programs with associated loan guarantees include:
- 7(a) Loan Guarantee Program:
- The SBA’s flagship program that provides loan guarantees to small businesses for various purposes, including working capital, equipment purchase, real estate acquisition, and more.
- The SBA guarantees a percentage of the loan amount, reducing the risk for lenders and making it easier for small businesses to access capital.
- 504 Certified Development Company (CDC) Loan Program:
- Focuses on providing financing for fixed assets such as real estate and equipment.
- Involves a partnership between a Certified Development Company, a lender, and the borrower.
- Microloan Program:
- Provides small loans (up to $50,000) to small businesses through nonprofit community-based organizations.
- Designed to assist with working capital, inventory, equipment purchase, or other needs.
- Express Loan Programs:
- Offers streamlined processes for small loans (up to $350,000) to provide faster access to funds.