Available Small Business Administration Loan

Small business administration loan must be important therefore for a budding entrepreneur to know its various loans so he may entitle himself to it, and make his business dreams a reality.

When one finds himself in the position of needing a loan for a business, he must turn to the Small Business Administration (SBA) for it. The SBA was created in 1953 for the interests of small businesses. The main goal of it is to help Americans start, build and grow businesses.

There are three basic loans from SBA for the budding entrepreneur:

Basic 7(a) Loan Guaranty

When one is not able to get loans from normal channels, the SBA would provide the Basic 7(a) Loan Guaranty, which targets those who plan to start up a new business. In terms of flexibility, this loan is the most flexible, since the loan can be used for a variety of purposes for the business, such as physical installations, manpower development and such. The loan maturity can reach up to 10 years and is generally 25 years for fixed assets.

Certified Development Company (CDC), a 504 Loan Program

This provides long-term, fixed rate financing to those companies that need to acquire real estate or equipment or machinery for expansion or modernization. These are for fixed assets such as buildings and land. The companies that usually need the loan are those that require “brick and mortar” financing. The maximum debenture is $1,500,000 when one needs for the job creation or community development objective. In general, a business must create or retain a job for every $50,000 the SBA has provided for. The 504 cannot be used in working capital, repaying debt or refinancing. The project assets are the collateral in this program.

Microloan, a 7(m) Loan Program

Usually for non-profit organizations, this loan provides a short-term loan of $35,000 to small businesses and non-profit organizations. On average, the given loan would be around $13,000. This is a localized process as applications are submitted to the local intermediary and all other credit decisions are made at the local level. Maximum years are 6 years. Most of the decisions are made by the lender. In general, interest rate would be around eight to thirteen percent.

Disaster Recovery

Should you be a victim of disaster, you may be eligible for financial assistance from the SBA. There are two types of loans: Personal Property, where you are given at most $40,000 to help you repair your home, and the Real Property, where a loan of $200,000 will be given to return the home to its pre-existing condition before the storm.


  • prachi srivastava said on March 7, 2011
    dear sir/madam, i'm interested to setup a paint & hardware material shop in bhopal, capital of madhya pradesh. for this i need a loan. so, kindly guide/suggest from where to get loan for above business. waiting for ur kind reply. with regards, prachi
  • Raghunath expert adviser said on March 8, 2011
    @prachi srivastava, i don't think you can get a government grant for this business but you can surely try your local bankers for a loan. They will get you upto 80% financed but they will need you to invest 20%+, a well written business plan and collateral.

    Raghunath Natarajan
    Startup Biz Hub - Advisor (Staff)

  • Bhagyalakshmi Ramesh G said on November 15, 2011
    We, 4 of us would like to start at mess in chennai to provide breakfast, lunch & dinner for offices, houses etc.. are we eligible for the loan. if so can you please guide us the procedure.
  • Dilip Singh said on November 24, 2011
    Sir, I am A graduate and MDPM & IR qualified exservicemen (from CORPS OF SIGNALS). Now, I wish to establish a fruit juice and softdrink factory at Maharaj Ganj, Dist - Siwan in Bihar. Please, let me know the correct procedures for its establishment and the subsidy given by the central or state government with this aspects. Eagerly waiting for your guidelines. Thanks
  • Vijay Kumar said on February 8, 2012
    Hello Sir, i am from Hissar Haryana i want to set up a new plant of soya milk processing in Hisar Disrict so please guide me how can i get a loan from bank about 25 lac. Regards, Vijay Kumar
  • Mayur said on March 1, 2012
    Hello sir my name is mayur and i want to expand my business i want loan of 10 lakhs and i dont have a guarantee against loan please sir help me . I have dairy farm at small level in ulhasnagar(kalyan) mumbai maharashtra
  • Jeanette Davis said on June 19, 2012
    Dear Sir/Madam: I have worked with your Vermont branch of SBA and have had great success at completing a 5 year projection business plan but No success at getting funding from conventional banks to fund my goat farm venture. I have searched for 2 years for such funding and am now turning to your organization for help. I am located in Morrisville Vermont and hope you will contact me with good news of your assistance. Thank you for your time. Jeanette Davis
  • vikas kaswan said on March 15, 2013
    hello sir, i am from hisar. i want to set up cotton seed crushing plant. can i get loan for this for any govt dept or other financial dept
  • Joseph muigai said on March 16, 2013
    Our business name is Grampus marketing agency in Nakuru county State of Rift valley in Kenya
  • yehualashet bayou said on June 24, 2014
    I am an entrepreneur, I want to fatten sheep and goats. How can you assist me getting loan?
  • himank said on March 11, 2015
    I want to start my own company of mobile services so pls contact us


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