SBA Financing for Small Businesses

Currently, there are basic guaranteed financing programs available through the SBA: the microloan program for small businesses loans under $50,000, the Section 7(a) loan guarantee program, and the Section 504 Community Development Corporation program. There is are a number of other specialty loan programs, such as the Disaster Loan Assistance program. All SBA guaranteed loans are done via a local bank. The SBA does not make loans directly.

The microloan program is perhaps the most accessible to startup businesses. The SBA provides funds go to approved, nonprofit organizations that, in turn, accept loan applications and make loan decisions. To locate a microloan source in your area, use the SBA's Loans and Grants search tool

The Section 7(a) loan guarantee program includes a variety of separate specialized programs. The amount guaranteed by the SBA and the interest rates charged vary based on the amount of the loan.

The Section 504 program involves SBA participation in private, nonprofit companies (Certified Development Companies or "CDCs") established for the purpose of providing long-term, fixed-asset financing to small businesses.

The SBA Disaster Loan Assistance programs help those who have suffered losses to property and businesses as a result of disasters.