The 7(a) Loan Program is SBA's most popular program. It is used for a great number of reasons by start-up and existing small businesses that might not be able to secure loans through standard channels.
- Terms up to 10 years for working capital
- Terms up to 25 years for fixed assets
- Expansion or renovation of an existing building
- Construction of a new facility
- Purchase land, buildings, equipment, inventory and fixtures
- Leasehold improvements
- Refinancing debts for compelling reasons
- Start-up business
Also called the Certified Development Company (CDC) Program, SBA 504 loans are designed to provide long-term, below market, fixed rate financing for major fixed finances and real estate.
- Construction of new facilities
- Renovating or converting existing facilities
- Purchasing land and improvements
- Purchasing long-term machinery and equipment
The 504 Program CANNOT be used for working capital or inventory, consolidating or repaying debt, or refinancing.