SBA loans are funded by approved lenders. The SBA 7(a) program is the most common SBA loan. Funds may be used to:
Sometimes the loans can also refinance existing debt. To qualify for a loan you cannot be a non-profit or a business involved in lending, real estate development, investments or speculation, and you cannot exceed the size requirements. These requirements depend on your type of business.
|Services and retailing
|$6.5 million in receipts
|$31 million in receipts
|$750,000 in annual receipts
To apply for an SBA loan, click on the "SBA approved lenders" link. These are Preferred Lenders, who can provide a response to complete loan applications in one day. The loans can be up to 10 years for working capital; up to 25 years for fixed assets. The interest rate typically cannot be greater than prime plus 2.75%.
Microloans are loans up to $250,000 funded for:
The loans are issued through non-profits which also provide free technical and management assistance.
The microloan issuer in your state is:
The SBA has a streamlined loan application process for franchises listed on the Franchise Registry.
If your franchisor is listed, you should obtain a "Certificate of No Change or Non-Material Change" from the franchisor. Provide this to the bank where you are seeking an SBA loan. This will eliminate the need to review all the franchise documents for SBA eligibility.