Small business owners know that financing is key to success. And for many businesses, the Small Business Administration (SBA) offers a variety of loan programs designed to help entrepreneurs start and grow their businesses. But with so many different types of SBA loans on offer, it can be difficult to determine which one is right for you.

SBA 7(a) Loan Program

The SBA’s most popular loan program, the 7(a) allows businesses to qualify for financing up to $5 million. It can be used for a variety of purposes including working capital, equipment purchases, real estate acquisition and renovations, and more. This type of loan is typically offered by commercial lenders, but the Small Business Administration offers participating lenders a guarantee of up to 85% of the loan amount.

SBA 504 Loan Program

The SBA 504 loan is specifically designed for businesses looking to purchase or renovate real estate and/or heavy equipment. It can provide long-term financing at below-market interest rates, with loan amounts of up to $5.5 million. The SBA 504 loan is typically provided in partnership with a local lender and the Small Business Administration, who provide a 50% guarantee of the loan amount.

SBA Microloan Program

The SBA’s Microloan program offers loans ranging from $500 to $50,000 for businesses with limited capital. These loans are offered through non-profit community-based organizations and are typically used to buy inventory, supplies, furniture, machinery, and other equipment.

SBA Disaster Relief Loans

These loans can help businesses recover from declared disasters such as floods, hurricanes, and wildfires. They offer loan amounts of up to $2 million to cover repairs, rebuilding, and other expenses resulting from a disaster.

SBA Export Loan Program

This loan program is designed to help businesses finance their export activities, including international marketing campaigns and overseas expansion efforts. It can provide financing of up to $5 million for the purchase of inventory, equipment, and working capital.

Now that you know more about the various SBA loan programs available, you can begin the process of finding the right one for your business. To get started, reach out to the team at BMF Advisors.