Increasing access to capital

The 7(a) loan program is SBA’s primary business loan program for providing financial assistance to small-medium sized manufacturers. SBA provides guaranties to lenders that allow them to offer financial help for small businesses with special requirements. 7(a) loans can be used for: 

• Acquiring, refinancing, or improving real estate and buildings
• Short- and long-term working capital 
• Refinancing current business debt 
• Purchasing and installation of machinery and equipment, including AI-related expenses
• Purchasing furniture, fixtures, and supplies 
• Changes of ownership (complete or partial)
• Multiple purpose loans, including any of the above

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs. 

Eligibility

To be eligible for 7(a) loan assistance, businesses must:

• Be an operating business
• Operate for profit
• Be located in the U.S.
• Be small under SBA Size Requirements
• Not be a type of ineligible business
• Not be able to obtain the desired credit on reasonable terms from non-Federal, non-State, and non-local government sources
• Be creditworthy and demonstrate a reasonable ability to repay the loan

Read more about terms, conditions, and eligibility. 

How to apply

You can use SBA’s Lender Match tool to connect with a participating SBA lender.  You will apply for your loan directly through your lender. 

The contents of the loan application vary depending on the size of the loan and the lender’s processing method. Your lender will help you determine which documents you’ll need based on your individual circumstances.

SBA’s 7(a) WCP is a comprehensive line of credit program that supports asset-based and transaction-based financing, helping manufacturers manage their working capital needs and take on new contracts. The 7(a) WCP has been engineered to:

• Enhance liquidity through an Asset-Based WCP loan which allows manufacturers to draw working capital against their inventory and accounts receivable
• Finance new projects under a Transaction-Based WCP that can support up to 100% of related expenses
• Provide financing for both domestic and export orders under a single line of credit
• Offer one-on-one counseling with SBA’s working capital experts to help customize a WCP loan to your specific needs

7(a) Working Capital Pilot loans have a maximum loan amount of $5 million.

Eligibility

Same as 7(a) above.

How to apply

Same as 7(a) above.

The 504 loan program provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.

504 loans are available through Certified Development Companies (CDCs), SBA’s community-based nonprofit partners who promote economic development within their communities. CDCs are certified and regulated by SBA.

A 504 loan can be used for a range of assets that promote business growth and job creation. These include the purchase or construction of: 

• Existing buildings or land 
• New facilities 
• Long-term machinery and equipment with a useful remaining life of a minimum of 10 years, including AI-supported equipment related to the project or machinery for manufacturing products 
• Consolidating debt under certain conditions and
• Repaying or refinancing debt defined as “qualified debt”

Or the improvement or modernization of: 

• Land, streets, utilities, parking lots and landscaping 
• Existing facilities 

The maximum loan amount for a 504 loan is $5.5 million.

Eligibility

To be eligible for a 504 loan, your business must: 

• Operate as a for-profit company in the United States or its possessions
• Have a tangible net worth of less than $15 million
• Have an average net income of less than $5 million after federal income taxes for the two years preceding your application

Other general eligibility standards include falling within SBA size guidelines, having qualified management expertise, a feasible business plan, good character and the ability to repay the loan.

Loans cannot be made to businesses engaged in nonprofit, passive, or speculative activities. For additional information on eligibility criteria and loan application requirements, small businesses and lenders are encouraged to contact a Certified Development Company in their area.

How to apply

504 loans are available exclusively through Certified Development Companies (CDCs).  Find a CDC in your area to ensure you are dealing with a qualified lender. CDCs are uniquely qualified to understand 504 loan program regulations and will help you navigate the lender channels to create your project financing.