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7(a) loans not made under the Paycheck Protection Program (PPP), 504 loans, and microloans. Disaster loans are not eligible.
Borrowers may separately apply for and take out a PPP loan, but debt relief under this program will not apply to a PPP loan.
In general, businesses must meet size standards, be based in the U.S., be able to repay, and have a sound business purpose. To check whether your business is considered small, you will need your business’s six-digit North American Industry Classification System (NAICS) code and three-year average annual revenue. Each program has different requirements, see the Small Business Administration’s website for more details.
7(a) loans are an affordable loan product of up to $5 million for borrowers who lack credit elsewhere and need access to versatile financing, providing short-term or long-term working capital and to purchase an existing business, refinance current business debt, or purchase furniture, fixtures, and supplies. In the program, banks share a portion of the risk of the loan with the Small Business Administration (SBA). There are many different types of 7(a) loans, you can visit the SBA website to find the one that’s best for you. You apply for a 7(a) loan with a bank or a mission-based lender. SBA has a free referral service tool called Lender Match to help find a lender near you.
The 504 Loan Program (PDF) provides loans of up to $5.5 million to approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization. It is a good option if you need to purchase real estate, buildings, and machinery. You apply through a Certified Development Company, which is a nonprofit corporation that promotes economic development. The Small Business Administration (SBA) has a free referral service tool called Lender Match to help find a lender near you.
The Microloan Program provides loans up to $50,000 to help small businesses and certain not-for-profit childcare centers to start up and expand. The average microloan is about $13,000. These loans are delivered through mission-based lenders who are also able to provide business counseling. The Small Business Administration (SBA) has a free referral service tool called Lender Match to help find a microlender near you.
Yes, Small Business Administration (SBA) resource partners are available to help guide you through the loan application process. You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center at the SBA website.