The major concern for today's small business owners is access to capital and credit. The SBA's loan guaranty programs provide a key source of financing for viable small businesses that have real potential, but cannot qualify for loans from traditional sources. SBA guarantees give small business owners access to the same kinds of reasonably priced, long-term financing available to large businesses by virtue of their size and economic clout. Financing programs provided by SBA vary according to a borrower's financial need. The following outlines major programs offered by the SBA.
- 7(a) Loan Guaranty Program – The 7(a) Loan Guaranty Program is the SBA's primary loan program. The SBA reduces risk to lenders by guaranteeing major portions of loans made to small businesses. This enables the lenders to provide financing to small businesses when funding is otherwise unavailable on reasonable terms.
- SBAExpress – SBAExpress is available for loans up to $250,000. The program authorizes SBA preferred lenders to use mostly their own forms, analysis and procedures to process, and service SBA guaranteed loans.
- SBA 504 Loan Program – The 504 is the SBA's economic development instrument that supports American small business growth and helps communities through business expansion and job creation. The SBA 504 loan program provides long-term, fixed-rate, subordinate mortgage financing for acquisition and/or renovation of capital assets including land, buildings, and equipment.
For more information, visit www.sba.gov or talk with one of the WoodTrust Bank commercial lenders.
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Consumer Banking