The SBA offers many small business loan programs to assist small online merchants. It is important to note, however, that the Small business Association is namely a guarantor of business loans made by private institutions and other entities.

The are several small business loan programs available on the SBA’s website.


PROGRAM: Basic 7(a) Loan Guaranty

FUNCTION:Serves as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels.

CUSTOMER: Start-up and existing small businesses, commercial lending institutions

DELIVERED THROUGH: Commercial lending institutions

www.sba.gov/financing/sbaloan/7a.htm

SBA offers multiple variations of the basic 7(a) loan program to accommodate targeted needs.



PROGRAM: Certified Development Company (CDC), a 504 Loan Program

FUNCTION: Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization.

CUSTOMER: Small businesses requiring “brick and mortar” financingDELIVERED

THROUGH: Certified development companies (private, nonprofitcorporations set up to contribute to the economic development of their communities or regions).

www.sba.gov/financing/sbaloan/cdc504.htm


PROGRAM: Microloan, a 7(m) Loan Program

FUNCTION: Provides short-term loans of up to $35,000 to small businesses and not-for-profit child-care centers for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment.

CUSTOMER: Small businesses and not-for-profit child-care centers needing small-scale financing and technical assistance for start-up or expansionDELIVERED

THROUGH: Specially designated intermediary lenders (nonprofit organizations with experience in lending and in technical assistance)

www.sba.gov/financing/sbaloan/microloans.htm



PROGRAM: Loan Prequalification

FUNCTION: Allows business applicants to have their loan applications for $250,000 or less analyzed and potentially sanctioned by the SBA before they are taken to lenders for consideration. The program focuses on the applicant’s character, credit, experience and reliability rather than assets.

CUSTOMER: Designated small businesses

DELIVERED THROUGH: Nonprofit intermediaries such as small business development centers and certified development companies operating in specific geographic areas.www.sba.gov/financing/sbaloan/prequalification.htm

Very useful information. Thanks Bonzi!

Thaks for saving me a buch of leg work.

v