Government-Backed Accessibility to Business Funding

N'site assists business owners in obtaining low-cost capital backed by the SBA. The Small Business Administration (SBA) is a federal agency dedicated to helping small business succeed. They provide a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs, business lending is one of them. The SBA guarantees that these loans will be repaid, thus eliminating some of the risk to the lending institutions.

The SBA does not make direct loans to small businesses. Instead, they set the guidelines for the loans guaranteed by them.  So when a business applies for an SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements with an SBA guaranty.

SBA Lending

Description: Low interest loans provided by participating banks and non-bank lenders. The SBA guarantees a large percentage of each loan issued. There a several lending programs that allow businesses to borrow for a variety of purposes including the supplementing of working capital, inventory acquisition, equipment purchases, buying real estate and refinancing other debt.

7(a) Loan Program - SBA’s most common loan program, includes financial help for businesses with special requirements. Proceeds from a 7(a) Loan may be used to establish a new business or to assist in the acquisition, operation, or expansion of an existing business.

SBA Express - A 7(a) Loan Program that features an accelerated approval process, reduced paperwork, a lower maximum qualifying amount and the ability to roll SBA fees into the loan.

504 Loan Program - Funds for growing businesses with long-term, fixed rate financing for major equipment and real estate purchases. 

Microloan Program - Loans up to $50,000 to help small businesses and certain not-for-profit childcare centers start up and expand. Microloans can be used for Working capital, Inventory or supplies, Furniture or fixtures and Machinery or equipment. Proceeds from an SBA microloan cannot be used to pay existing debts or to purchase real estate.

Basic Requirements:  SBA generally does not specify what businesses are eligible. However, there are some universally applicable requirements based on specific aspects of the business and its principals. The key factors taken into consideration of eligibility include:

• The type of business (what the business does to receive its income)

• Credit quality of the business ownership

• Where the business operates

Lending Amounts:

• up to $50,000 for Microloans

• up to $350,000 for SBA Express Loans

• up to $5 million for 7(a) and 504 Loan Programs

Maturity Terms:

• 7(a) Loans (including SBA Express) -

  • up to 7 years for working capital

  • up to 10 years for equipment

  • up to 25 years for commercial real estate

• 504 Loans - 10 and 20 year maturities

• Microloans - Various terms, maturities are based on the ability to repay, the purpose of the loan proceeds and the useful life of the assets financed.

Conventional Funding Sources

Interested in Business Term Loans, Business Lines of Credit, Equipment Financing or SBA Lending? Please see our Conventional Funding Source

Alternative Funding Solutions

Interested in Accounts Receivable Financing, Asset-Based Financing, Revenue Loans, Purchase Order Financing or Merchant Cash Advance? Please see our Alternative Funding Sources.