Small Business Loans

Small Business Loans increased substantially last year. Small business loans through SBA (Small Business Administration) guaranteed a record number of loans with double-digit increases in the percentage of loans to women, Hispanics, African-Americans, and Asian Americans.

7(a) loans are the most basic and most used type loan of SBA's business loan programs. Its name comes from section 7(a) of the Small Business Act, which authorizes the Agency to provide business loans to American small businesses.

All 7(a) loans are provided by lenders who are called participants because they participate with SBA in the 7(a) program. Not all lenders choose to participate, but most American banks do. There are also some non-bank lenders who participate with SBA in the 7(a) program which expands the availability of lenders making loans under SBA guidelines.

The Small Business Administration fiscal year budget of $678.4 million carries increases in loan authority for the agency's flagship lending program. The budget requests $12.5 billion in loan guarantee authority for the 7(a) program, a 30 percent increase over last fiscal year.

In the traditional 7(a) program, banks and other lenders approve loans and the SBA guarantees 50 percent to 85 percent of $150,000 or less and up to 75 percent of principal on loans of more than $150,000.

Typical Credit Requirements:

$150,000+ Minimum Annual Sales
Business in Operation for 2 Years or More
680 MINIMUM Personal Credit Score
Personal Credit History Established for 3 years or More
Cannot be Overextended with Current Credit Obligations
Cannot Have an Excessive History of Late Payments
Cannot Have Outstanding Bankruptcies, Liens, Collections, Judgments, Charge-Offs or Repossessions

Financial contracts are very confusing. Before signing yourself to a major long term committment; have an attorney, familiar with financing and taxes, examine and explain the details (where the Devil is). A good tax finance attorney can save you many times his fee over the years, not to mention possible legal problems.

Whether buying a new car, or a used car, or selling a vehicle; first check KBB (Kelley Blue Book), Black Book, Red Book, or the NADA Used Vehicle Guide.

For complete information on all your financial needs, turn from small business loans to the Loan homepage.

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