A guaranteed loan is one made by a commercial lending institution (usually a bank) to a small business customer. This is SBA's most frequently used loan program. Regular Guaranteed Loans include International Trade loans, Express Loans, Patriot Express Loans, Small and Rural Advantage Loans, and Community Express Loans. While SBA's standards are designed to be more relaxed than those of commercial lenders the SBA will not approve loans to businesses with unsatisfactory profit history, inadequate equity investment, unsupported projections, or, unacceptable credit histories. Additionally, a reasonable "at stake" equity injection by the applicant is required.Įach application is individually considered based on earnings potential, collateral, track record and/or projections, management, and the type of businesses in the same field. The SBA places its primary emphasis for loan consideration on the demonstrated ability of the business to repay all business-related debt, including the new loan obligation. The second evaluation is based on the credit merits of the application. The first is for eligibility which varies by industry and SBA program. SBA evaluates each loan application on two levels. SBA's four basic loan programs are: Guaranteed Loans, Certified Development Company Loans or 504 Loan Program, Small Business Investment Companies, and Microloans. ![]() Be sure to check with SBA for the most recent criteria. ![]() The qualifications for these programs change from time to time. The Small Business Administration has financial assistance programs that provide access to debt and equity primarily from banks or other private sources.
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