SBA 504 Program
|
| Type |
|
Direct loan to business |
| Eligible Businesses |
|
Retail, commercial, manufacturing, distribution or service |
| Size Standards |
|
Net worth below $6 million; annual income below $2 million |
| Use |
|
Land acquisition and improvements, purchase or remodeling of a building, construction of or addition to a building, purchase of machinery or equipment, leasehold improvements |
| Maximum |
|
40% of project cost, up to $750,000 ($1,000,000 for targeted projects) |
| Term |
|
10 years for equipment, 20 years for real estate |
| Rates |
|
Tied to Treasury Bonds; T-Bonds plus 1.5%, fixed rate |
| Equity |
|
Minimum 10% equity investment |
| Job Creation |
|
One job for each $35,000 of 504 financing (may be waived for rural development projects, which meet public policy goals) |
| Bank Loan |
|
50% of project cost; fixed or floating rate; minimum seven (7) year term on equipment and ten (10) year term on real estate |
| Fees |
|
$500 application fee; up-front processing: 2.875%; annual: .60% servicing fee; closing: maximum $2,500 |
Contact:
Gary Seeley, Executive Director
Enterprise Development Corporation
9030 Hocking Hills Drive
The Plains, OH 45780
phone: 740-797-9646 ยท fax: 740-797-9659 |
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SBA Contract Loan Program
|
| Type |
|
Direct loan to business |
| Eligible Businesses: |
|
Construction contractors, general or special trade; manufacturers and service contractors with an assignable contract are eligible; must be in operation for 12 months before the date of the application |
| Size Standards |
|
Must have fewer than 500 employees |
| Use |
|
Finance labor and material costs for one contract; cannot be used to finance receivables or inventory |
| Maximum |
|
Up to $155,000 guaranteed at up to 90%; up to $750,000 guaranteed at up to 85% |
| Term |
|
Typically a 12 month term; large contracts may be approved for 18 months by the District Director |
| Rates |
|
Interest rate set by the bank, not to exceed the maximum rate set by SBA |
| Equity |
|
Assignment of the contract proceeds is required as collateral; pledge of outside assets and secured personal guarantees are usually required |
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
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|
SBA Defense Loan and Technical Assistance Program
|
| Type |
|
Guaranteed Loan |
| Eligible Businesses: |
|
Defense-dependent small firms adversely affected by defense cuts |
| Size Standards |
|
Net worth below $6 million; annual profits below $2 million |
| Use |
|
Financial and technical assistance to help defense-dependent firms diversify into commercial market |
| Maximum |
|
Varies depending on 7 (a) or 504 participation; tied to Treasury Bonds; T-Bonds plus 1.5%, fixed rate; negotiable with lender; maximum 2.75% over prime |
| Term |
|
$1.25 million (total loan amount) |
| Rates |
|
Varies depending on 7 (a) or 504 participation; tied to Treasury Bonds; T-Bonds plus 1.5%, fixed rate; negotiable with lender; maximum 2.75% over prime |
| Bank Loan |
|
Required |
| Fees |
|
Guaranty fee paid by lender (may be passed on); based on maturity amount of SBA exposure |
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
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SBA Export Working Capital Program
|
| Type |
|
Guaranteed loan |
| Eligible Businesses: |
|
Small business exporters who need short-term working capital |
| Size Standards |
|
Net worth below $6 million; annual profits below $2 million |
| Use |
|
Short-term working capital loans for exporters |
| Maximum |
|
$750,000 (may be combined with International Trade Loan); maximum guarantee $750,000 ($1 million in some cases); private lender unlimited |
| Term |
|
Matches single transaction cycle or generally one year for line of credit |
| Rates |
|
No cap |
| Fees |
|
Paid by lender (may be passed on); based on maturity amount of SBA exposure |
Contact:
US Small Business Administration (SBA)
Federal Building, US Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
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SBA Small General Contractor Loans
|
| Type |
|
Direct loan to business |
| Eligible Businesses |
|
Must be a construction contractor or homebuilder |
| Size Standards |
|
Must have fewer than 500 employees |
| Use |
|
Must be used only for direct expenses of the project; rehabilitation projects also qualify if, at the time of loan application, the estimated costs are equal to or more than a third of the purchase price or the fair market value of residential or commercial buildings at the time they are offered for sale; may also be used to purchase vacant land if the price is no more than 20% of the total loan; no more than 5% of the loan can be used for streets, curbs and other development costs that benefit properties other than the one being built or rehabilitated. |
| Maximum |
|
Up to $750,000 |
| Term |
|
Thirty-six (36) months, plus a reasonable estimate of time it takes to complete the construction or renovation; principal repayment may be required in a single payment when the project is sold, interest payments are required at least twice a year and must be paid from the applicant’s own resources not from loan proceeds |
| Rates |
|
Prime rate plus 2.25% |
| Equity |
|
Loans must be secured by not less than a second lien. The total amount of the first and second liens cannot exceed 80% of the contractor’s anticipated selling price. |
| Job Creation |
|
|
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
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|
SBA Guaranty Loan 7 (a)
|
| Type |
|
Partial loan guarantee |
| Eligible Businesses: |
|
Retail, commercial, manufacturing, distribution or service |
| Size Standards |
|
Must have fewer than 500 employees |
| Use |
|
Working capital; acquisition of supplies, inventory or fixed assets; financing of contracts |
| Maximum |
|
$750,000 guaranteed at 75% (80% if total loan is $100,000 or less) |
| Term |
|
5 to 10 years for working capital; up to 25 years for fixed assets (not to exceed life of equipment) |
| Rates |
|
Negotiated, up to prime rate plus 2.75%; may be fixed or variable |
| Equity |
|
Start-ups must have 20% to 30% equity investment; more is required on higher risk businesses; requires a personal guarantee |
| Bank Loan |
|
Required; application is submitted through a private lender |
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
|
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SBA Guaranty Loans 7 (a)-LowDoc
|
| Type |
|
Partial loan guarantee |
| Eligible Businesses: |
|
Retail, commercial, manufacturing, distribution or service |
| Size Standards |
|
Start-ups; businesses with $5 million or less annual sales for the past 3 years; employ 100 or fewer |
| Use |
|
Working capital; acquisition of supplies, inventory or fixed assets; financing of contracts |
| Maximum |
|
$100,000 guaranteed at up to 80% |
| Term |
|
Not to exceed 25 years for fixed assets; 10 year maximum for all other uses |
| Rates |
|
Negotiated, up to prime rate plus 2.75%; may be fixed or variable |
| Equity |
|
Start-ups must have 20% to 30% equity investment; more is required on higher risk businesses; requires a personal guarantee |
| Bank Loan |
|
Required; application is submitted through a private lender |
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
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SBA International Trade Loan Program
|
| Type |
|
Guaranteed loan |
| Eligible Businesses: |
|
Small businesses engaged or preparing to engage in international trade or adversely affected by competition from imports |
| Size Standards |
|
Start-ups, businesses with $5 million or less annual sales for past 3 years; employ 100 or fewer |
| Use |
|
Combination of working capital and fixed-asset financing; improvements in U.S. for producing goods or services; may not be used to pay existing debt |
| Maximum |
|
$1.25 million; varies depending on whether done under 7 (a) or 504; 75% guarantee under 7 (a); 40% of the project (100% SBA-backed debenture) |
| Term |
|
Up to 25 years |
| Rates |
|
Negotiable with lender; maximum rate 2.75% over prime |
| Fees |
|
Paid by lender (may be passed on); based on maturity amount of SBA exposure |
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
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|
SBA Pollution Control Loan
|
| Type |
|
Partial loan guarantee |
| Eligible Businesses: |
|
Most for-profit small businesses |
| Size Standards |
|
Must have fewer than 500 employees |
| Use |
|
Pollution Control Loans are intended to provide loan guarantees to eligible small businesses for financing of the planning, design or installation of a pollution control facility. The facility must prevent, reduce, abate or control any form of pollution, including recycling. |
| Maximum |
|
Up to $1,000,000 guaranteed at 75% |
| Term |
|
Maximum term is 25 years |
| Rates |
|
Prime rate plus 2.25% to 2.75% |
| Equity |
|
Holders of at least 20% ownership in the business are generally required to guaranty the loan. |
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
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|
SBA Seasonal Line of Credit
|
| Type |
|
Partial loan guarantee |
| Eligible Businesses: |
|
Small firms needing a loan due to seasonal increase in business activity; must have been in business for at least 12 months; this program is for those contractors who cannot obtain bonding elsewhere |
| Size Standards |
|
Must have fewer than 500 employees |
| Maximum |
|
Up to $100,000, guaranteed at up to 80%; up to $750,000 guaranteed at up to 75% |
| Term |
|
Up to 5 years |
| Rates |
|
Maximum prime rate plus 2.75% |
| Equity |
|
Required; loan secured from private lender |
Contact:
U.S. Small Business Administration
Chicago Regional Office
230 Dearborn Street, Room 510
Chicago, IL 60604-1593
phone: 312-353-7331 |
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|
SBA Small Asset-Based Loan Program
|
| Type |
|
Direct loan to business |
| Eligible Businesses: |
|
Most for-profit businesses |
| Size Standards |
|
Must have fewer than 500 employees |
| Use |
|
Working capital to meet seasonal increase in business |
| Maximum |
|
Up to $200,000 |
| Term |
|
Up to 5 years |
| Rates |
|
Maximum is 2.25% above Prime |
| Equity |
|
Collateral is primarily liens on all inventory and accounts receivable |
| Bank Loan |
|
Pledge of outside assets and personal guarantees may be required |
Contact:
U.S. Small Business Administration
Federal Building, U.S. Courthouse
85 Marconi Blvd., Room 512
Columbus, OH 43215
phone: 614-469-6860 |
|
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|
USDA Business & Industry Loan Guarantees
|
| Type |
|
Partial loan guarantee |
| Eligible Businesses: |
|
Most for-profit businesses; exceptions and ineligible purposes include charitable institutions, churches and fraternal organizations, lending and investment institutions, insurance companies, race tracks, golf courses and revolving lines of credit |
| Use |
|
Up to 80% loan guarantee for acquisition of real estate, machinery and equipment or term working capital |
| Maximum |
|
$10,000,000; $25,000,000 under limited circumstances |
| Term |
|
Maximum is 7 years for term working capital; 15 years for machinery and equipment; 30 years for real estate |
| Rates |
|
Fixed or variable |
| Equity |
|
Minimum is 10% tangible balance sheet; Start-ups should have tangible book equity of 20% – 25% |
| Job Creation |
|
Goal is $40,000 of loan guarantee for each job created or retained |
| Bank Loan |
|
Collateral: Must be sufficient to protect the interest of the lender and USDA; generally personal guarantees are required |
| Fees |
|
A one-time guarantee fee, equal to two percent (2%) of the guaranteed portion of the loan is due at the time the guarantee is issued |