Reference Guide to SBA Loan Programs
SBA.gov, updated March 2014.
|The SBA Loan Program||SBA 7(a)||7 (a) Small Loan||SBA Express||SBA Veterans Advantage||CapLines||Community Advantage|
|Details||Any 7(a) loan $350,000 and under, except the Community Advantage and Express loans||This program helps get small business loans into the hands of veterans. For loans up to $350,000 authorized under the SBA Express program, veterans will have no upfront fees. This program is due to expire 9/30/2016.||1. Working Capital|
3. Seasonal; and
|(Mission-focused lenders only. Expires 03/15/2017)|
|Maximum Loan Amount||$5 Million||$350,000||$350,000||$350,000||$5 Million||$250,000|
|Percent of Guaranty||85% guaranty for loans of $150,000 or less; 75% guaranty for loans greater than $150,000 (up to $3.75 million maximum guaranty)||If the lona amount is less than $350,000, its requirements will conform to the SBAExpress program. Loans above this amount will follow the 7(a) guidelines.||50%||Same as SBA Express||Same as 7(a)||Same as 7(a)|
|Use of Proceeds||Term Loan. Expansion/renovation; new construction, purchase land or buildings; purchase equipment, fixtures, lease-hold improvements; working capital; refinance debt for compelling reasons; seasonal line of credit, inventory or starting a business||Same as 7(a)||May be used for revolving lines of credit (up to 7 year maturity) or for a term loan same as 7(a).||Same as SBA Express||Finance seasonal and/or short-term working capital needs; cost to perform; construction costs;|
advances against existing inventory and receiva-bles; consolidation of short-term debts. May be revolving.
|Same as 7(a)|
|Maturity||Depends on ability to repay. Generally, working capital & machinery & equipment (not to exceed life of equipment) is 5-10 years; real estate is 25 years.||Same as 7(a)||Up to 7 years for Revolving Lines of Credit, including term out period. Otherwise, same as 7(a).||Same as SBA Express||Up to 10 years, except Builder’s CAPLine, which is 5 years||Same as 7(a)|
|Guaranty Fees||(No SBA fees on loans of $150,000 or less approved in FY 2014.) Fee charged on guarantied portion of loan only. $150,001 – $700,000 = 3.0%; $700,000 – $1,000,000 = 3.5%; plus 3.75% on guaranty portion over $1 million. Ongoing fee of 0.52% on loans over $150,000.||Same as 7(a)||Same as 7(a)||No guaranty fee. Ongoing fee of 0.52% on loans above $150,000.||Same as 7(a)||Same as 7(a)|
|Who Qualifies||Must be a for-profit business & meet SBA size standards; show good character, credit, management, and ability to repay. Must be an eligible type of business. Prepayment penalty for loans with maturities of 15 years or more if prepaid during first 3 years. (5% year 1, 3% year 2 and 1% year 3)||Same as 7(a). Plus,all loan applications will be credit scored by SBA. If not an acceptable score, the loan can be submitted via full standard 7(a) or Express.||Same as 7(a)||Same as 7(a) Plus, small business must be owned and controlled (51%+) by one or more of the following groups: veteran, active-duty military in TAP, reservist or National Guard member or a spouse of any of these groups, or a widowed spouse of a service member or veteran who died during service, or a service-connected disability.||Same as 7(a) Plus, all lenders must execute Form 750 & 750B (short-term loans)||Same as 7(a)|
|Benefits to Borrower||Long-term financing;|
Improved cash flow;
Fixed maturity; No balloons;
No prepayment penalty (under 15 years)
|Same as 7(a)||Fast turnaround;|
Easy-to-use line of credit
|Same as SBAExpress|
No guaranty fee
|1. Working Capital – (LOC)|
Revolving Line of Credit
2. Contract – can finance all costs (excluding profit).
3. Seasonal – Seasonal working capital needs.
4. Builder – Finances direct costs when building a commercial or residential
|Same as 7(a) Plus|
lenders must be CDFIs, CDCs or micro-lender target-ing underserved market