San Diego & Imperial Valley Edition 2020—U.S. Small…

FUNDING PROGRAMS

Need Financing? Visit your local SBA office or lender to learn about these funding options.

The 7(a) Loan, the SBA’s Largest Financing Program If you cannot get conventional financing and you meet the eligibility requirements, you can use a 7(a) loan to buy real estate, equipment, or inventory for your small business. It may also be used for working capital, to refinance business debt or purchase a small business. MAX LOAN AMOUNT: $5 million INTEREST RATE: generally prime + a reasonable rate capped at 2.75% TERMS: loan term varies according to the purpose of the loan, generally up to 25 years for real estate, 10 years for other fixed assets and working capital GUARANTEE: 50 to 90% CAPLines Meet your revolving capital needs with lines of credit. CAPLines can be used for contract financing, seasonal lines of credit, builders line of credit, or for general working capital lines. SBA Express Loan Featuring a simplified process, these loans are delivered by experienced lenders who are authorized to make the credit decision for the SBA. These can be term loans or revolving lines of credit. MAX LOAN AMOUNT : $350,000 INTEREST RATE: for loans less than $50,000, prime + 6.5%; for loans of $50,000 and greater, prime + 4.75% TERMS: loan term varies according to the purpose of the loan, generally up to 25 years for real estate and 10 years for other fixed assets and working capital GUARANTEE: 50% Community Advantage A financing program for women, veterans, low-income borrowers, and minority entrepreneurs just starting up or in business for a few years. Receive free business counseling as you work with a community-based financial institution. INTEREST RATE: prime + 6% TERMS: up to 25 years for real estate, 10 years for equipment and working capital GUARANTEE: 75 to 90%

Microloans Eligible businesses can startup and grow with working

capital or funds for supplies, equipment, furniture and fixtures. Borrow from $500 to $50,000 and access free business counseling frommicrolenders. INTEREST RATE: loans less than $10,000, lender cost + 8.5%; loans $10,000 and greater, lender cost + 7.75% TERMS: lender negotiated, no early payoff penalty 504 Certified Development Company Loan If you do not qualify for traditional financing, but would like to purchase or renovate real estate or buy heavy equipment for your business, ask about the 504 loan. It provides competitive fixed-rate mortgage financing through a lender and a Certified Development Company. MAX LOAN AMOUNT (UP TO 40% OF THE TOTAL PROJECT): up to $5 million; $5.5 million for manufacturing or energy public policy projects INTEREST RATE: belowmarket fixed rates for 10, 20 or 25 year terms TERMS: 20 or 25 years for real estate or long-term equipment, 10 years for general machinery and equipment GUARANTEE: the lender provides a senior loan for 50% of the project cost (with no SBA guarantee); the CDC finances up to 40% in a junior lien position (supported by the SBA guarantee) SPECIAL CONDITION: a minimum borrower contribution, or down payment, is required, amounts vary by project but are usually 10%

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www.sba.gov

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