Government Loans and Other Financial Resources
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| 7(A) Small Business Loan | 7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. The loan program is designed to assist for-profit businesses that are not able to get other financing from other resources.The maximum length of the loan is 25 years for real estate and 7 years for working capital. The maximum loan amount is $2 million. | All businesses that are considered for financing under SBA's 7(a) loan program must: meet SBA size standards, be for-profit, not already have the internal resources (business or personal) to provide the financing, and be able to demonstrate repayment. Certain variations of SBA's 7(a) loan program may also require additional eligibility criteria. Special purpose programs will identify those additional criteria. | Click Here for more details. |
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| Microloan Program | The MicroLoan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (Microlender Intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. The average loan size is about $10,500. Applications are submitted to the local intermediary and all credit decisions are made on the local level. The maximum term allowed for a microloan is six years. However, loan terms vary according to the size of the loan, the planned use of funds, the requirements of the intermediary lender, and the needs of the small business borrower. Interest rates vary, depending upon the intermediary lender and costs to the intermediary from the U.S. Department of the Treasury. | Start-up, newly established, or growing small businesses.Each intermediary lender has its own lending and credit requirements. However, business owners contemplating application for a microloan should be aware that intermediaries will generally require some type of collateral, and the personal guarantee of the business owner. | Click Here for more details. |
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| Business Physical Disaster Loans | If your business or private, non-profit organization- large or small- has suffered physical damage as a result of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration. The SBA makes physical disaster loans of up to $2.0 million to qualified businesses or private, non-profit organizations. The maximum maturity for such business disaster loans is 30 years. However, the actual maturity is based on your ability to repay the loan. Maximum Loan Amount: $2.0 million. | Any business or private, non-profit organization located in a declared disaster area and has incurred damage during the disaster may apply for a loan to help repair or replace damaged property to its pre-disaster condition. | Click Here for more details. |
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| CDC 504 Program | The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Generally, A private investor will provide 50% of the project cost, the Certified Development Company (backed by SBA) will provide 40% of the cost, and the business applicant will provide 10% equity injection. The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing. The interest rate is pegged to an increment above five and 10 year Treasury Issues. The length of the loan can be either 10 or 20 years. The maximum loan amount is general $1million, but can be $1.3 million for public policy goals. | Businesses must be for profit and fall within the size standards set by the SBA. Under the 504 Program, the business qualifies as small if it does not have a tangible net worth in excess of $7 million and does not have an average net income in excess of $2.5 million after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment in rental real estate. | Click Here for more details. |
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| Economic Injury Disaster Loans | If your small business or private, non-profit organization has suffered substantial economic injury, regardless of physical damage, and is located in a declared disaster area, you may be eligible for financial assistance from the U.S. Small Business Administration. The interest rate on EIDLs cannot exceed 4 percent per year. The maximum maturity for such business disaster loans is 30 years. However, the actual maturity is based on your ability to repay the loan. Maximum Loan Amount $2.0 million. | Small businesses, small agricultural cooperatives and certain private, non-profit organizations of all sizes that have suffered substantial economic injury resulting from a physical disaster or an agricultural production disaster designated by the Secretary of Agriculture may be eligible. Substantial economic injury is the inability of a business to meet its obligations as they mature and to pay its ordinary and necessary operating expenses | Click Here for more details. |
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| Equity Investment (SBIC Program) | The Small Business Investment Company (SBIC) program was created in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations. SBICs exist to supply equity capital, longterm loans and management assistance to qualifying small businesses. SBICs invest in a broad range of industries. Some SBICs seek out small businesses with new products or services because of the strong growth potential of such firms. Some SBICs specialize in the field in which their management has special competency. Most SBICs, however, consider a wide variety of investment opportunities. | To obtain SBIC financing, you should first identify and investigate existing SBICs that may be interested in financing your company. Use the SBIC directory as a first step in learning as much as possible about SBICs in your state, or in other areas important to your company's needs. In choosing an SBIC, consider the types of investments it makes, how much money is available for investment and how much might be available in the future. You should also consider whether the SBIC can offer you management services appropriate to your needs. | Click Here for more details. |
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| Indian Loans Economic Development | The purpose of the program is to assist individual American Indians in obtaining financing from private sources to promote business development initiatives on or near Federally recognized Indian reservations. | In order to qualify for this benefit program, you must be a Native American/American Indian who needs financial assistance with owning your own business, and you or a family member must be enrolled in a federally recognized American Indian tribe or Alaskan Native village. | Click Here for more details. |
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| Military Reservist Economic Injury Disaster Loan Program | The purpose of the Military Reservist Economic Injury Disaster Loan program (MREIDL) is to provide funds to eligible small businesses to meet itheir ordinary and necessary operating expenses that they could have met, but are unable to meet, because an essential employee was "called-up" to active duty in their role as a military reservist. These loans are intended only to provide the amount of working capital needed by a small business to pay its necessary obligations as they mature until operations return to normal after the essential employee is released from active military duty. The purpose of these loans is not to cover lost income or lost profits. MREIDL funds cannot be used to take the place of regular commercial debt, to refinance long-term debt or to expand the business. The interest rate on MREIDL loans is no more than 4% per year. The maximum maturity for such business disaster loans is 30 years. However, the actual maturity is based on your ability to repay the loan. Maximum Loan Amount $2.0 million. | SBA must have a reasonable assurance that such loans can and will be repaid. Collateral is required for all MREIDLs over $50,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available. Because the Military Reservist economic injury loans are taxpayer subsidized, Congress intended that applicants with the financial capacity to fund their own recovery should do so and therefore are not eligible for MREIDL assistance. | Click Here for more details. |
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| Short-Term Lending Program | The Department of the Treasury guarantees up to $750,000 in loans with participating lenders for eligible small & disadvantaged businesses. The loan guarantee provides a revolving line of credit for work on transportation-related contracts. Funds are to be used to meet the short-term costs of performing the contract(s) being financed. The interest rate of the loan is a variable calculated by using Wall Street Journal Prime Interest Rate and adding 2 points. The line of credit covers a one-year period. The applicant can request a renewal (up to five years), as long as they remain eligible. Applicant submits an application fee of $150.00 to the Participating Lender along with a complete application. | All applicants must meet the STLP eligibility requirements to be considered for a line of credit guaranteed by USDOT. The eligibility requirements are designed to ensure that all recipients of DOT financial assistance are currently performing on a USDOT federally-assisted transportation-related contract. | Click Here for more details. |
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OTHER SBA LOAN PROGRAMS
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STATE AND LOCAL GOVERNMENT ECONOMIC DEVELOPMENT PROGRAMS
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MORE LOAN AND FINANCIAL RESOURCES
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GOVERNMENT PROGRAMS FOR RURAL BUSINESSES
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GOVERNMENT HOUSING LOANS
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AGRICULTURE LOANS FROM THE GOVERNMENT Go Back to The Top
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LOAN REPAYMENT/FORGIVENESS AND SCHOLARSHIP PROGRAMS
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GOVERNMENT BENEFITS AND FINANCIAL ASSISTANCE
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NON-PROFIT ORGANIZATIONS TO HELP WITH DEBT Go Back to The Top
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