Business Loan Types

Small Business Loan
7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses. The loan program is designed to assist for-profit businesses that are not able to get other financing from other resources.

All 7(a) loans are provided by lenders who are called participants because they participate with SBA in the 7(a) program. Not all lenders choose to participate, but most American banks do. There are also some non-bank lenders who participate with SBA in the 7(a) program which expands the availability of lenders making loans under SBA guidelines.

Contact a Loan Professional to see if you qualified for any of these types of business loans

Certified Development Company (504) Loan Program 
The CDC/504 loan program is a long-term financing tool for economic development within a community. The 504 Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Generally, A private investor will provide 50% of the project cost, the Certified Development Company (backed by SBA) will provide 40% of the cost, and the business applicant will provide 10% equity injection. The 504 Program cannot be used for working capital or inventory, consolidating or repaying debt, or refinancing.

Economic Injury Disaster Loans 
The Small Business Investment Company (SBIC) program, part of the U.S. Small Business Administration (SBA), was created in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations. SBIC's exist to supply equity capital, longterm loans and management assistance to qualifying small businesses.

The privately owned and operated SBIC's use their own capital and funds borrowed from the U.S. Small Business Administration (SBA) to provide financing to small businesses in the form of equity securities and longterm loans. SBIC's are profit seeking organizations that select small businesses to be financed within rules and regulations set by SBA. Specialized SBIC's (SSBIC) are a particular type of SBIC that provide assistance solely to small businesses owned by socially or economically disadvantaged persons.

SBIC's invest in a broad range of industries. Some SBIC's seek out small businesses with new products or services because of the strong growth potential of such firms. Some SBIC's specialize in the field in which their management has special competency. Most SBIC's, however, consider a wide variety of investment opportunities.

Equity Investment (SBIC Program)Micro loan Program
The Small Business Investment Company (SBIC) program, part of the U.S. Small Business Administration (SBA), was created in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations. SBIC's exist to supply equity capital, longterm loans and management assistance to qualifying small businesses.

The privately owned and operated SBIC's use their own capital and funds borrowed from the U.S. Small Business Administration (SBA) to provide financing to small businesses in the form of equity securities and longterm loans. SBIC's are profit-seeking organizations that select small businesses to be financed within rules and regulations set by SBA. Specialized SBIC's (SSBIC) are a particular type of SBIC that provide assistance solely to small businesses owned by socially or economically disadvantaged persons.

SBIC's invest in a broad range of industries. Some SBIC's seek out small businesses with new products or services because of the strong growth potential of such firms. Some SBIC's specialize in the field in which their management has special competency. Most SBIC's, however, consider a wide variety of investment opportunities.

Military Reservist Economic Injury Disaster Loan Program 
The purpose of the Military Reservist Economic Injury Disaster Loan program (MREIDL) is to provide funds to eligible small businesses to meet its ordinary and necessary operating expenses that it could have met, but is unable to meet, because an essential employee was "called-up" to active duty in their role as a military reservist. These loans are intended only to provide the amount of working capital needed by a small business to pay its necessary obligations as they mature until operations return to normal after the essential employee is released from active military duty. The purpose of these loans is not to cover lost income or lost profits. MREIDL funds cannot be used to take the place of regular commercial debt, to refinance long-term debt or to expand the business.

Physical Disaster Loans 
If your business -- large or small -- has suffered physical damage as a result of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration.

Any business that is located in a declared disaster area and has incurred damage during the disaster may apply for a loan to help repair or replace damaged property to its pre-disaster condition. The SBA makes physical disaster loans of up to $1.5 million to qualified businesses.

Contact a Loan Professional to see if you qualified for any of these types of business loans