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SBA Loan Programs

SBA loan programs are the different setups through which the SBA facilitates small business lending. Though all SBA loan programs will offer affordable business funding, different SBA loan programs offer a variety of funding possibilities based on your business’s history, the amount of capital you need, and how you plan to use the funds.

Here’s a quick look into all of the available SBA loan programs:

  1. Standard 7(a) Loan Program. The SBA’s most popular and most general loan program, good for working capital.
  2. Microloan Program. Intended for smaller businesses who need up to $50,000 for working capital.
  3. CDC/504 Loan Program. The SBA’s version of a commercial real estate loan.
  4. 7(a) Small Loan. A 7(a) loan up to $350,000 that’s typically faster to fund.
  5. SBA Express Loan. SBA loans that come with a 36-hour approval turnaround time.
  6. SBA Export Express. SBA loans for businesses that need to finance export needs at a fast turnaround time.
  7. Export Working Capital. Short-term loans up to $5 million for export businesses.
  8. Veteran’s Advantage. SBA loans specifically for veterans, up to $350,000 in capital.
  9. CAPLines. The SBA’s version of a business line of credit.
  10. Home and Personal Property SBA Disaster Loans. Offer up to $200,000 for repairing personal property.
  11. Business Physical SBA Disaster Loans. Offer up to $2 million for repairing business property.
  12. Economic Injury SBA Disaster Loans. Funding for post-disaster slow business.
  13. Military Reservists Economic Injury SBA Disaster Loans. Loans for businesses with a key employed called for active duty.

In this guide, we look at the three primary SBA loan programs, plus 10 other sub-programs, and how they work to help you determine which one is the best fit for your business.

What Are SBA Loan Programs?

Though how an SBA loan works will vary from loan program to loan program, a hallmark of SBA loans is that they offer low-rate, long-term funding. SBA loans have some of the lowest interest rates that a business owner can find. And long repayment terms translate to manageable monthly payments. Plus, because most SBA loan programs will mean lessened risk for lenders in some form or fashion, SBA lenders lend more to small businesses. Together, participating lenders issued over $113 billion in SBA loans in the SBA’s fiscal 2017 year.

SBA loan programs have some drawbacks as well. Qualifying for an SBA loan is tough—these loans go only to the most creditworthy of borrowers. Plus, getting an SBA loan takes patience. The average loan processing time is 4 to 6 weeks, even with a specialist like Bmclending helping you with your application. These loan programs are best for borrowers who don’t have an immediate need for funds (if you need capital right away, try other quick business loan options).

It’s also important to note that, while we go into the most popular SBA loan programs, there are many programs that the SBA offers for different entrepreneurs. They help facilitate SBA loans for women or Community Advantage Loans for specific locales.