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SBA Financing
Intro | PACE SBA Micro Loan | SBA Financing | SOHO Loan | Workshops
Whether you’re just starting a small business or expanding to take advantage of new opportunities, your business needs the right financing at the right time in order to succeed.
The U.S Small Business Administration (SBA) is committed to helping small businesses, which are the backbone of the nation’s economy, thrive. Working closely with a wide range of lending partners across the country, SBA has developed a number of financial programs that address the various needs of small businesses and help small to medium sized businesses obtain financing that is otherwise difficult to secure through conventional commercial loans.
Banks and other lending institutions offer a number of SBA guaranteed loan programs to assist small businesses. While SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions. PACE BDC is an SBA approved technical assistance provider and we work with SBA lending partners to secure financing for the small business clients that we serve. For more information, please contact us 213.353.9400 or bdcinfo@pacela.org to make an appointment to get the assistance that you need to obtain business financing.
Below is an overview of SBA’s guaranteed loan programs. For more information, click on the name of the program.
7(a) Loan Program:
This is SBA’s primary and most flexible loan program, with financing guaranteed for a variety of general business purposes. It is designed for start-up and existing small businesses, and is delivered through commercial lending institutions.
The major types of 7(a) loans are:
CDC/504 Loan Program:
This program provides long-term, fixed-rate financing to acquire fixed assets (such as real estate or equipment) for expansion or modernization. It is designed for small businesses requiring “brick and mortar” financing, and is delivered by CDCs (Certified Development Companies)—private, non-profit corporations set up to contribute to the economic development of their communities.
Micro-loan Program:
This program provides small (up to $35,000) short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. It is designed for small businesses and not-for-profit child-care centers needing small-scale financing and technical assistance for start-up or expansion, and is delivered through specially designated intermediary lenders (nonprofit organizations with experience in lending and technical assistance).
Disaster Assistance Loan Program:
This program provides low-interest loans to homeowners, renters, businesses of all sizes and most private non-profit organizations to repair or replace real estate, personal property, machinery and equipment, inventory and business assets that have been damaged or destroyed in a declared disaster.
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