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SBA Financing Provides Money For Acquiring A New Business, Starting  A New One, or Expanding An Existing One.

SBA Frequently Asked Questions (FAQ's) About SBA 7A and SBA 504 Loans Small Business Administration Programs for Small Business Borrowers


A Snapshot Of The SBA 7A and SBA 504. What's The Difference Between The Programs.

SBA 7A and 504 Small Business Loan Snapshots

PROGRAM: Basic 7(a) Loan Guaranty

FUNCTION: Serves as the SBA's primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels.

It is also the agency's most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes. Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions).

Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.

CUSTOMER: Start-up and existing small businesses, commercial lending institutions SBA offers multiple variations of the basic 7A Loan program to accommodate targeted needs.

PROGRAM: Certified Development Company (CDC), a 504 Loan Program

FUNCTION: Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower.

The maximum SBA debenture generally is $1 million (and up to $1.3 million in some cases).

CUSTOMER: Small businesses requiring brick and mortar financing.

The above are basic SBA FAQ's for specific answers to question use our No-Obligation Professional Loan Analysis form

Lightning Commercial Funding - Small Business Loans, SBA Loans San Diego