United States Small Business Administration Loans An SBA loan is an affordable alternative to conventional methods of financing, guaranteed by the U.S. Small Business Administration. Obtain financing for a variety of purposes: Purchase Inventory Purchase Machinery/Equipment/Furniture/Fixture Purchase Real Estate Obtain Working Capital Purchase an Existing Business or Franchise Manage Start-up Costs Refinance Certain Existing Debt PROGRAM:  Basic 7(a) Loan Guaranty FUNCTION:  Serves as the SBA’s primary business loan program to help qualified small businesses obtain financing when they might not be eligible for business loans through normal lending channels. It is also the agency’s most flexible business loan program, since financing under this program can be guaranteed for a variety of general business purposes.   Loan proceeds can be used for most sound business purposes including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements, and debt refinancing (under special conditions). Loan maturity is up to 10 years for working capital and generally up to 25 years for fixed assets.   CUSTOMER:  Start-up and existing small businesses PROGRAM:  Certified Development Company (CDC), a 504 Loan Program FUNCTION:  Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Typically a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower. The maximum SBA debenture generally is $1 million (and up to $1.3 million in some cases).   CUSTOMER:  Small businesses requiring “brick and mortar” financing