SBA 7(a) GUARANTEED BUSINESS LOAN PROGRAM

The U.S. Small Business Administration enables small businesses to have better access to commercial loans. Through the SBA 7(a) Guaranteed Business Loan Program, the eligible borrower is able to obtain a business loan that has the financial guaranty of the U.S. Government. This program is available to U.S. citizens and resident aliens subject to eligibility qualifications concerning the use of funds and size standards.

Use Of Loan Proceeds
SBA loan proceeds can be used for most business purposes, including the purchase of a business or real property (if substantially owner-occupied), business assets or equipment, and inventory or raw materials. These loans may also secure working capital, refinance existing deb, and provide start-up funding.

Other Features
The SBA program generally requires the existence or injection of equity to demonstrate the borrower's capacity, commitment, and willingness to invest in the success of the business. The SBA will require a personal guaranty from each shareholder or partner who owns at least 20% of the business.

The SBA guaranteed loans may be amortized up to 25 years for real estate, 10 years for equipment, and 7 years for working capital. There is no prepayment penalty for partial or full retirement of the loan prior to maturity.

There are additional SBA programs which offer benefits to borrowers who have been targeted according to economic and geographic profiles.