Small Business Administration
Guaranteed Loans

SBA guaranteed loans are available for small businesses that have been denied loans from banks. That does not mean "have bad credit" although some programs, particularly the Microloan program, will work with people who have spotty credit in order to qualify them for a loan. The Small Business Administration does not provide a direct loan in most cases, but will offer a guarantee of a percentage of the loan to your lender. That makes the loan less risky for the lender.

What do you need to have to get an SBA guaranteed loan? The business must be in the U.S. or a U.S. governed territory. It must also be for profit. In almost all cases, the owner or owners must invest their own equity in the company (and they must have equity to invest) and they must first seek other sources of funding. That's why the bank that turns you down for a loan can also turn around immediately and be the originator on an SBA guaranteed loan.

Who Can Get A SBA Loan?

What Can You Use An SBA Loan To Do?

Other Considerations

Types of loans available:

• Start or grow a business. Must have pretty good credit. Max loan $150,000. (SBA LowDoc Loan Program).
• Small revolving loans (type needed for working capital). Max loan $150,000. (SBAExpress).
• Small revolving loans (restricted to low and moderate income areas). (Community Express SBA Pilot Loan Program).
• Working capital for seasonal business cycles. Max loan $750,000. (SBA CAPLines Loan Program, Seasonal Line).
• Direct labor and materials for a contract. Max loan $750,000. (SBA CAPLines Loan Program Contract Line).
• Direct labor and material for a builder who constructs or renovates buildings. Max loan $750,000. (SBA CAPLines Loan Program Builder's Line).
• Companies that provide credit to other businesses who can't currently meet normal credit standards for a longer term loan. Max loan $750,000. (SBA CAPLines Loan Program Standard Asset-Based Line).
• Building, land, construction, long-term machinery or equipment to provide economic development in a specific community or region. (CDC (504) Loan Program).
• Community has lost jobs as a consequence of the North American Free Trade Agreement. (U.S. Community Adjustment and Investment Program (CAIP)).
• General business, real estate, franchise. (SBA 7(a) Loan Program).

SBA Microloans:

• Introduction to Microloans
• Listing of Participating Intermediary Lenders