Five Popular SBA Loan Programs in Brief
Since there are a number of loan programs of SBA and if you will chose the write one, then you can loose the chance to get the SBA loan approval. This blog will let you know the programs in brief and you can also get the details of each program through SBA website. Majorly five types of SBA loans exist and they are 7(a) loan. 504 loan, CAPLines, Export Loan, Micro Loan and Veteran SBA Loan Program. The brief introduction of each type of loan is here:
SBA 7(a) Loan Program It is one of the common loan program of SBA and the borrower can get the loan up to $5,000,000 from this program as working capital or to buy any new equipment for his business or for debt refinance.
CDC/ 504 Loan Program Through this loan program you can get the loan for long term and at lower interest rate from SBA. The loan is provided by bank and non profit CDC and the borrower can get the loan up to $20,000,000 for real estate or to buy any expensive or heavy equipment.
CAP Lines Loan This loan is to help the business owner for his seasonal working capital requirement or to meet the short term need. The loan can be applied for maximum 5 years and lines of credit can be revolving or fixed for this loan.
Export Loan If the business owner is seeking funds for his exporting operations, then he can apply for SBA export loan.
Micro loan Program You can get the micro loan for up to 6 years terms and these loans have the higher interest rate, which may be up in between 8 to 13%. The loan can not be applied for real estate or Debt Refinance.
