The United States Small Business Administration was established in 1953 to aid and protect the interest of small business concerns. One of the principal ways this mission is carried out is through the Guaranteed Loan Program which is intended to help provide financing to small businesses when that financing is not otherwise available on reasonable terms. Use of the program helps reduce the risk of being taken by the lender, while also permitting SBA to leverage its appropriated funds.
It is not the aim of the program to guaranty loans to businesses which might be identified as high risk, unbankable, or without a reasonable assurance of repayment ability. We do target specific groups in our outreach efforts from time to time to assure that all segments of our small business constituency are aware of our programs; however, both eligibility and credit standards are essentially uniform for all guaranteed loan programs.
The two most common types of loan programs are the LOW DOC program and the 7(A) loan program. The LOW DOC program is for a loan request up to $100,000. There is a simplified application process which makes the paperwork easier than ever before.
The borrower must:
The 7(A) program requires a more detailed application because of the loan size. Emphasis is placed on management experience, collateral, financial projections and expected benefits the company will receive from the loan proceeds.
The approval process with the LOW DOC loan is usually three to four working days from receipt of the package by the SBA. The 7(A) loan turnaround time generally is within a two week timeframe.
Our SBA specialists have a wealth of knowledge on how to help your business grow.
If you're thinking of starting a business or expanding your present operation, give our SBA Loan specialists a call. They'll be happy to assist you.
Telephone 888-888-8888 or EMAIL lowell5@ls.com
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