U.S. Small Business Administration: Fueling American Business, Enabling Entrepreneurial Success

In the face of, arguably, the most difficult economic conditions in our lifetime, businesses like yours have shown tremendous resiliency, vision and creativity to survive and move forward. And while challenges will always exist, the changing economy is creating opportunities for you to grow and expand your business right now. One such opportunity for growth and expansion is business financing offered by the U.S. Small Business Administration (SBA).

For nearly 60 years, the SBA has provided loan programs to help millions of entrepreneurs start, grow and expand their businesses. SBA loans are structured to specifically meet the needs of small business, with features such as lower down payments and extended loan terms designed to reduce your monthly loan payment. With SBA financing, you can find the capital you need to help create new opportunities while freeing up cash for day-to-day needs. SBA loans can provide:

• Up to 25-year terms, with no balloon payments
• Fixed or variable interest rates up to 25 years
• As little as 10 percent down payment on commercial real estate
• Loan closing costs that may be financed¹

So how do you know if your business qualifies for SBA financing?

1. Your business must operate for-profit
2. You must operate in the United States or United States territories
3. Your business cannot have more than $15 million in maximum tangible net worth and a two-year average net income after Federal income tax of $5 million
4. Your business must show that the loan can be repaid from existing cash flow
5. Your business must meet the SBA credit underwriting guidelines of the financial institution offering financing

The SBA has developed a number of flexible lending programs to meet a variety of business needs:

• SBA 7(A) – Provides loan amounts up to $5 million. Ideal for commercial real estate expansion, new construction, working capital, equipment purchase, refinancing existing debt, or exporting.
• SBA 5042 – Loans from $125,000 to more than $10 million. Designed to help acquire fixed assets such as commercial real estate or equipment. This program has a job creation requirement².
• SBA Express – Provides a term loan or line of credit up to $350,000. Same benefits of an SBA 7(A), but with a simpler application process and faster approval.
• SBA Export Express – Term loans or revolving lines of credit up to $500,000 designed for businesses in operation for at least 12 months and can demonstrate that loan proceeds will support export development.
• SBA international Trade Loan – Offers fixed asset, working capital and debt financing options up to $5 million, in support of export transactions that help small businesses expand into international markets.
• CAPLines Program – Line of credit up to $5 million to help small businesses address short-term and cycling working capital needs.

SBA’s impact on American business continues to evolve as entrepreneurs play a more significant role in our economy. While financing assistance fuels growth and expansion, SBA helps level the competitive field with programs that can expand your capabilities and protect your investment. These programs include:

• SCORE, a non-profit association comprised of retired executives who provide business counseling and training to small businesses nationwide to promote entrepreneurial success and business growth
• Opportunities to participate in government contracting
• Disaster relief assistance

In a challenging economy, SBA is a true friend to the American entrepreneur. Contributions continue to grow, strengthening small businesses in every sector and helping to introduce innovative products and services. Learn more about the benefits provided by the U.S. Small Business Administration by visiting sba.gov.




All loans are subject to credit review and approval.

1. Other non-SBA fees may apply.
2. Unlike 7(A) loans, 504 loans include job creation requirements: Manufacturers, for example, must create or retain one new job for each $100,000 of the loan, while all other industries must create or retain one new job for each $65,000 of the CDC 504 loan.
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