Defaults on federal obligations—such as certain student loans or prior SBA-backed loans—can also affect eligibility for new government-supported financing. In some cases, borrowers may be able to rehabilitate or consolidate defaulted federal student loans and restore access to federal programs, but this requires proactive action and documented repayment history. Prospective borrowers with significant past credit issues should consult a qualified advisor or lender early to understand their options.
PUBLIC SOURCES OF FINANCING – FEDERAL PROGRAMS
U.S. SMALL BUSINESS ADMINISTRATION (SBA)
The U.S. Small Business Administration (SBA) helps people start, build, and grow businesses. SBA was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, preserve free competitive enterprise and maintain and strengthen the overall economy of our nation. SBA Minnesota District Office 330 2 nd Ave. S. Suite 430 Minneapolis, MN 55403 612-370-2324 | Minnesota@sba.gov Loans The U.S. Small Business Administration (SBA) helps small businesses get funding by setting guidelines for loans and reducing lender risk. Find Lenders - Lender Match Get matched to potential lenders funding with competitive rates and fees. Loan Programs 7(a) Loans SBA's primary program for providing financial assistance to small businesses. 7(a) loans are delivered by SBA 7(a) lenders. 7(a) loans can be used for: • Acquiring, refinancing, or improving real estate and buildings • Short- and long-term working capital • Refinancing current business debt • Purchasing and installation of machinery and equipment, including AI-related expenses
• Purchasing furniture, fixtures, and supplies • Changes of ownership (complete or partial) • Multiple purpose loans, including any of the above
The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates.
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