|
PROGRAM |
MAX LOAN AMOUNT |
MAX PERCENT OF GUARANTEE |
USE OF PROCEEDS |
MATURITY |
MAX INTEREST RATES |
GUARANTY & OTHER FEES |
ELIGIBILITY |
| 7(a) Loan
Guaranty Program – primary loan program |
$500,000*
Max Project Size is $2,000,000 |
75% (85% if loan
is $150,000 or less) |
Expansion or
renovation, construction of new facility; purchase of land and
building, fixtures, leasehold improvements; working capital;
refinance debt for compelling reasons; seasonal line of credit;
inventory acquisition |
Depends upon
ability to repay; generally working capital is 5-7 years; machinery
& equipment up to 10 years (not to exceed life of equipment;
real estate up to 25 years |
Negotiable with
lender; loans under 7 years, max prime plus 2.25%; loans 7 years
or more, max 2.75% over prime; under $50,000 rates may be higher |
Paid by lender
(usually passed on to borrower); based on maturity, amount of
SBA exposure; 1 year or less, 0.25%; OVER 1 year, $150,000 or
less 1% of gty portion: $1.00 to $700,000 – 2.5%; $700,000
to $1,000,000 – 3.5% |
Must be for-profit,
meet SBA size standards, show good character, management expertise
& commitment, and show ability to repay loan, may not be
involved in speculation or investment |
|
STAR Loan Program (Business
must show an adverse effect from the 9/11 event) (Program scheduled
to end January 10, 2003 or sooner if funds are exhausted.) |
$1,000.000 Max Project Size is
$2,000,000 |
75% (85% if loan is $150,000 or less) |
Expansion or renovation, construction of new facility; purchase
of land and building, fixtures, leasehold improvements; working
capital; refinance debt inventory acquisition |
See 7(a) |
See 7(a) |
See 7(a) |
See 7(a) |
| CAPLines
(Short-term & revolving lines of credit):
Seasonal:Contract Line Builders
Line Standard Asset- based
Small Asset-based |
$500,000* (except
Small Asset based) |
75%, See 7(a) |
Finance seasonal
working capital needs; costs to perform contracts; construction
costs; advances against inventory & receivables; consolidation
of short term debts possible |
Up to 5 years |
2.25% above prime |
See 7(a); under
standard asset based, no restriction on servicing fees. |
Existing businesses,
see 7(a) |
|
International Trade Loan Program
Short/long term financing |
$500,000* (total loan amount) |
75%, see 7(a) |
Working capital; improvements in
U.S. for producing goods & services;
may not be used to repay existing debt |
Up to 25 years |
See 7(a) |
See 7(a) |
Small businesses engaged or preparing to engage in exporting
or adversely affected by competition from imports; see 7(a)
for other qualifications |
|
Export Working Capital Program - 1 page application
with fast turnaround; may apply for pre-qualification letter |
$500,000* (may be combined with International Trade term loan)
|
90%, see 7(a) |
Short-term loans to finance export transactions |
Matches single or multiple transaction cycles or general 1 year
for line of credit |
No cap on interest rates |
See 7(a); no restriction on servicing fees |
Small business exporters needing short-term working capital;
see 7(a) for other qualifications |
|
SBAExpress – lender approves loan, no additional
paperwork for SBA; limited sites |
$250,000 (total loan amount) |
50% |
Same as 7(a) ; limitation on real estate & construction;
may be used for term loans or revolving credits |
Term loan same as 7(a); no more than 5 years on revolving lines
of credit |
Up to 6.5% above prime |
See 7(a) |
See 7(a) |
|
Export Express– lender approves
loan, no additional paperwork for SBA; limited sites |
$250,000 (total loan amount) |
75% (85% if loan is $150,000 or less) |
Participation in Foreign trade show; General Lines of credit
for export purposes; Purchase of R/E or equipment to be used
or actual export orders |
5-10 years for working capital; 10-15 for machinery and equipment |
No cap on interest rates |
See 7(a) |
See 7(a) Proceeds must enable entry into a new export markert;
expand existing export market; in business for at least 12 months |
|
SBALowDoc 1-page application
to obtain guaranty, quick turnaround after applicant meets lender
requirements |
$150,000 (total loan amount) |
85% |
Same as 7(a) except may not be used to repay certain types of
existing debt. |
See 7(a) |
See 7(a) |
See 7(a) |
Startups & businesses with $6.0 million or less annual sales
for past 3 years, employs 100 or fewer; program relies on applicant’s
character and credit history |
| 7(m) MicroLoan
Program – loans made through non-profit lending organizations,
technical assistance also provided; limited sites |
$50,000 (total
loan amount |
N/A |
Purchase equipment
& machinery, fixtures, leasehold improvements, finance increased
receivables, working capital, may not be used for debt repayment |
Short term possible,
not to exceed 6 years |
Negotiable with
intermediary |
No guaranty fee |
Same as 7(a) |
|
504 Certified Development Company Program - long
term, fixed-asset loans through non-profit development companies;
must create or retain 1 job per $35,000 of debenture proceeds |
Limit on SBA portion of project is $1.0 million to $1.3 million |
40% of project (100% SBA-backed debenture); private lender unlimited |
Purchase of major fixed assets, such as land, buildings, improvements,
long-term equipment, construction, renovation |
10 or 20 years only |
Based on current market rate for 5- and 10-year Treasury issues,
plus an increment above Treasury rate |
Fees related to debenture, approximately 4% |
For-profit businesses that do not exceed $6 million in tangible
net worth and did not have average net income over $2 million
for past two years. |
