The document provides an overview of the different types of loans offered by the Small Business Administration (SBA). It describes SBA's 7a loans which include general business loans and SBA Express loans. These loans offer lower interest rates, longer repayment periods, and more favorable terms than non-SBA loans. It also outlines SBA's CDC/504 loans which are for large capital investments in equipment and property, and SBA's disaster loans for businesses damaged by a declared disaster or experiencing substantial economic injury from a disaster. The document explains eligibility requirements and terms for each loan type.

1. SBA Loans
The Ultimate Guide
by FitSmallBusiness.com

2. The
sets the guidelines
for the approval of loans
and guarantees part of
their repayment.

3. The
sets the guidelines
for the approval of loans
and guarantees part of
their repayment.
This guarantee lowers the risk for SBA
lending partners which include banks,
community development organizations, and
micro-lending institutions.

4. SBA loans
often have:

5. SBA loans
often have:
• Lower interest rates.

6. SBA loans
• Lower interest rates.
often have: • Longer repayment periods.

7. SBA loans
• Lower interest rates.
often have: • Longer repayment periods.
• And other more favorable
terms than non-SBA loans.

8. The Personal
Guarantee

9. The Personal
Guarantee
All SBA loans require personal guarantees for
every owner of at least 20% of the business

10. Your home
may be included as
collateral

11. Your home
may be included as
collateral
But this depends on the
value of the assets already
pledged as collateral and
the size of the loan.

12. The
May require a professional
appraisal of both your business
and personal assets.

13. The
May require a professional
appraisal of both your business
and personal assets.
For more information on SBA loan collateral
and the personal guarantee, see this page.

14. SBA loans
Types:
• The 7a General Small
Business Loan
• The 7a SBA Express
• The CDC/504 Real Estate
and Equipment Loan
• Disaster Loans

15. SBA loans
Types:
• The 7a General Small
Business Loan
• The 7a SBA Express
• The CDC/504 Real Estate
and Equipment Loan
• Disaster Loans
These loan programs have different purposes
and terms, which this guide will explore in order
to help you understand which SBA loan is best
for you and your small business.

16. The 7a General
Small Business Loan

17. The 7a General
Small Business Loan
Is appropriate for most
types of business. One well
known use of a 7a loan is
for the purchase of a
franchise.

18. 7a Loans
Can also be used for a wide range of other purposes.

19. 7a Loans
Can also be used for a wide range of other purposes.
• Long or short-term working capital
• Purchase equipment and real estate
• Construction
• Business acquisition
• Refinancing

20. There is
no minimum
loan amount for the 7a, and
the maximum is
$5 million.

21. The 7a SBA
EXpress

22. The 7a SBA
EXpress
Guarantees a response to an
application within 36 hours.

23. The 7a SBA
EXpress
Guarantees a response to an
application within 36 hours.
Follows the same guidelines as the
standard 7a but the maximum loan
amount is $350,000.

24. There is no defined
interest rate
On 7a loan, since the actual interest
rate is negotiated between the
applicant and lender, subject to an
SBA maximum.

25. There is no defined
interest rate
On 7a loan, since the actual interest
rate is negotiated between the
applicant and lender, subject to an
SBA maximum.
The maximum interest rate is likely to be several
percentage points lower than an equivalent non-SBA loan.

26. Maximum interest rates that you would pay
based on the prime rate at the time this
presentation was written.
Less Than $25K
Loans With Terms
Under 7 Year
Loans With Terms of
7 Years or Greater
$25k - 50K
Over $50K
3.25% (base rate) +
4.25% (markup)=
3.25% + 3.25% =
3.25% + 2.25% =
7.5%
6.5%
5.5%
3.25% + 4.75% =
3.25% + 3.75% =
3.25% + 3.75% =
9.0%
8.0%
7.0%

27. The 7a SBA
Qualifications
According to the SBA, in order to
be eligible for a 7a loan
your businesses must:

28. The 7a SBA
Qualifications
• Have reasonable invested
equity.
•Use the funds for a sound
business purpose.

29. The 7a SBA
Qualifications
• Use alternative financial
resources, including personal
assets, before seeking financial
assistance.

30. The 7a SBA
Qualifications
•Be able to demonstrate a
need for the loan proceeds.
•Not be delinquent on any
existing debt obligations to
the U.S. government.

31. The 7a SBA
Qualifications
•Be able to demonstrate a
For comprehensive eligibility information,
go here.
need for the loan proceeds.
•Not be delinquent on any
existing debt obligations to
the U.S. government.

32. CDC/504 Loan
Real Estate and Equipment
The

33. CDC/504 Loan
Real Estate and Equipment
The
Is a more specialized form
of SBA loan designed
specifically for large
capital investments in
equipment and property.

34. CDC/504 Loan
Real Estate and Equipment
The
Can be used to purchase
land, make improvements
to existing facilities,
construct new facilities,
and purchase long-term
machinery and equipment.

35. CDC/504 Loan
Real Estate and Equipment
The
(for a comprehensive list of 7a loan uses, see
this article).
Can be used to purchase
land, make improvements
to existing facilities,
construct new facilities,
and purchase long-term
machinery and equipment.

36. The maximum
loan amount for a
CDC/504 loan
ranges between
$4-5.5 million

37. But the exact amount depends
on how your small business
plans on using the loan in
relation to job creation and
public policy.

38. But the exact amount depends
on how your small business
plans on using the loan in
relation to job creation and
public policy.
For a more detailed explanation check
our main article here.

39. The
CDC/504
Qualifications
• Have a tangible net worth less
than $15 million and an average net
income less than $5 million after
taxes for the preceding two years.

40. The
CDC/504
Qualifications
• Not be engaged in speculation or
investment in rental real estate.

41. The
CDC/504
Qualifications
• Not be engaged in speculation or
investment in rental real estate.
• Not have funds available from
other sources.

42. The
CDC/504
Qualifications
• Have the ability to repay the loan
on time from the projected
operating cash flow of the
business

43. Disaster Loans

44. Disaster Loans
The SBA offers a number of
different disaster loans, but
the two types relevant to
small business owners are:

45. Disaster Loans
“Business Physical
Disaster Loans”
“Economic Injury
Disaster Loans”

46. You may be eligible for a
Business Physical
Disaster Loan
If your business has been
damaged by a disaster
that is in a declared
disaster area.

47. Businesses are eligible
for loans up to
$2 million

48. Businesses are eligible
for loans up to
$2 million
Which can be used for the repair
or replacement of real property,
machinery, equipment, and
inventory.

49. You may be eligible for an
Economic Injury Disaster Loan
If your small business, small
agricultural cooperative, or nonprofit organization has suffered
substantial economic injury as a
result of a disaster.

50. Substantial
economic injury
Is defined as your business being
“unable to meet its obligations and
to pay its ordinary and necessary
operating expenses.”

51. These loans are up to $2 million
with a maximum repayment term of 30
years.

52. These loans are up to $2 million
with a maximum repayment term of 30
years.
For more comprehensive information on
Economic Injury Disaster Loans, see this article.

53. disaster loan
interest rate
For “Business Physical Disaster Loans”
Interest rates will be less than 4 %
if credit is not available elsewhere
And less than 8% percent if credit is available
elsewhere.

54. disaster loans
interest rate
For “Economic Injury
Disaster Loans”
interest rates will be less than 4%

55. And Finally...

56. To learn how to
simplify the process of
running your business
visit us at....

57. www.FitsmallBusiness.com
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