SBA Loans

The SBA loan programs put long-term, fixed-rate capital in the hands of operators who would otherwise have trouble reaching it. They are worth pursuing, and they are more navigable than they look from the outside.

They are also delivered through a lender, and on a 504 through a Certified Development Company, each applying its own credit policy alongside the SBA's published rules. Both are legitimate, and telling them apart is most of the skill. A borrower who knows which requirement comes from the SOP and which is the lender's own asks sharper questions, models against the right numbers, and moves faster.

The two programs do different jobs. 7(a) is the general-purpose one, used for working capital, equipment, real estate and business acquisition. 504 pairs a bank loan with a CDC debenture to finance owner-occupied real estate and long-life equipment at a long fixed rate. Most borrowers only need to know which one their project fits, and a lender or CDC will tell you that in a first conversation.

Debt service coverage. Global cash flow. Equity injection on total project cost. Affiliation, and what counts against your ceiling. Every one of these is knowable before you apply, and most of them are knowable this afternoon. This page is the route through them, in the order a real file gets built.