The SBA guarantees many different types of loans, to meet the unique needs of most small business owners. There are a few different options when shopping around for an SBA loan, and choosing the right loan for your business is what is most important. While the standard SBA 7(a) loan is the most widely used of the bunch, that does not mean that it is a one size fits all solution for small business funding.
THE DIFFERENT SBA LOANS AND WHAT THEY ARE USED FOR ARE:
SBA 7(a) Loan - This is the standard SBA loan product, for up to $5 million in funding.
SBA 7(a) Small Loan - A smaller, more cost-effective loan than the original 7(a), with funding up to $350,000.
SBA Express Loan - SBA financing at an accelerated pace. Funding up to $350,000 with a much faster turnaround time and a guaranteed response within 36 hours.
SBA Export Express Loan - Another streamlined loan process, for Export companies looking to secure up to $500,000. Guaranteed response within 24 hours.
SBA Export Working Capital Loan - Up to $5 million for working capital to be used by export companies
SBA International Trade Loan - Long-term financing for growing export companies or exporters battling imports and foreign competition.
SBA 504 Loan - Up to $5 million SOLELY for the purchase, construction, acquisition, rehabilitation, and/or modernization of fixed assets.
SBA financing is more than just awesome individual loan products, too. The SBA has preferred lenders in place to provide more flexible financing options for business owners. There is also the Veterans Advantage Program that provides reduced fees for the rapidly growing veteran-owned business population. Finally, The SBA has an umbrella program dubbed “CAPLines” which are basically different types of business lines of credit to help small business owners meet their short-term and cyclical working-capital needs.