For existing companies, SBA lending can be very useful. Any owner of 5% or more will have to guarantee the loan. All owners must have good credit to qualify. The SBA offers the following programs:
– 7(a) Business Loans: This is the SBA’s primary loan program and can loan up to $2 million. Fees start at 2% and increase based on the loan amount.
– SBA Express Loans: This type of loan is provided by the individual lender up to a max of $350K.
– Community Express: This is a pilot program used for working capital and can be up to $250K.
– 504 Loan Program: This program uses fixed, long-term financing to finance fixed assets. The money can be used for equipment, machinery, land, buildings
or any other physical asset. The max loan is $1.5M.