Programs

&

Services

5th Edition

General SBA Information

America’s Small Business Resource

U.S. Small Business Administration
Published by the Office of

Marketing & Customer Service

All program descriptions, including the dollar amounts and percentages,

are accurate as of the time of printing.

Legislative and administrative changes may occur that could affect these programs.

SBA offices can provide up-to-date information.

All of the SBA’s programs and services are provided to the public

on a nondiscriminatory basis.

“Wealth is created by Americans — by

creativity and enterprise and risk-taking. But

government can create an environment where

businesses and entrepreneurs and families can

dream and flourish.”

George W. Bush

President of the United States
Welcome!

I hope that you will find

Programs & Services, 5th

Edition, to be a useful guide

in locating the appropriate

programs for financing, business counseling and training,

and federal government contracting within the U.S. Small

Business Administration.

If you are ready to launch a small business, or

take an existing one to the next level, the SBA’s

dedicated employees and resource partners are eager

to help. Through our loan guaranty and equityinvestment programs you can obtain money to start

a business or expand one. At the same time you can

take advantage of the SBA’s business counseling and

training programs to manage your business as it

grows. 

In the event of a natural disaster the SBA assists small

businesses and homeowners through our Disaster

Loan Program. The program can help you get your

business up and running again quickly, and it can

help you return to your home.

At the SBA, we take great pride in our mission

to help American entrepreneurs start and grow their

businesses and help American homeowners and

small businesses recover from disasters.

I invite you to read this guide, and if you think the

SBA can be of assistance to you we look forward to

hearing from you.

Sincerely,

Hector V. Barreto

Administrator

Programs & Services

Table of Contents

SBA FINANCIAL ASSISTANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Loan Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Basic 7(a) Loan Guaranty Program . . . . . . . . . . . . . . . . . . . . . . . 1

Special 7(a) Loan Guaranty Programs . . . . . . . . . . . . . . . . . . . . . 5

CAPLines Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Defense Loan & Technical Assistance (DELTA) . . . . . . . . . . . 7

Community Adjustment & Investment (CAIP) . . . . . . . . . . . . 8

Export Working Capital Loan (EWCL). . . . . . . . . . . . . . . . . . 9

International Trade Loan (ITL) . . . . . . . . . . . . . . . . . . . . . . . . 9

Energy & Conservation Loan . . . . . . . . . . . . . . . . . . . . . . . . . 11

Pollution Control Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Qualified Employee Trusts Loan. . . . . . . . . . . . . . . . . . . . . . . 12

Streamlined Applications & Approval . . . . . . . . . . . . . . . . . . . 12

Standard Application Process. . . . . . . . . . . . . . . . . . . . . . . . . . 12

Certified Lenders Program . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Preferred Lenders Program. . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Low Documentation Loan (SBALowDoc) . . . . . . . . . . . . . . . . 13

SBAExpress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

CommunityExpress. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

SBA ExportExpress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Loan Prequalification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Other SBA Loan Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

7(m) Microloan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

504 Certified Development Company . . . . . . . . . . . . . . . . . . 17

SBA Franchise Registry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Loan Repayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Should Problems Arise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Equity Investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Small Business Investment Company (SBIC). . . . . . . . . . . . . . . 19

New Markets Venture Capital (NMVC) . . . . . . . . . . . . . . . . . . 20

Surety Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Surety Bond Guarantee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

FEDERAL GOVERNMENT CONTRACTING ASSISTANCE . . . . . . . 21

Small Business Size Determination . . . . . . . . . . . . . . . . . . . . 21

Natural Resources Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Prime Contracting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Subcontracting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Certificate of Competency (CoC) . . . . . . . . . . . . . . . . . . . . . 22

Contracting Assistance for Women Business Owners. . . . . 22

Procurement Marketing &

Access Network (PRO-Net®) . . . . . . . . . . . . . . . . . . . . . . 22π

SUB-Net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Small Business Size Standards . . . . . . . . . . . . . . . . . . . . . . . . 23

HUBZone Empowerment Contracting. . . . . . . . . . . . . . . . . 24

Research & Development Assistance. . . . . . . . . . . . . . . . . . . 24

Small Business Innovation Research (SBIR). . . . . . . . . . . . . . . . 24

Small Business Technology Transfer (STTR) . . . . . . . . . . . . . . 25

Small Business Research, R&D Goaling . . . . . . . . . . . . . . . . . . 25

Federal and State Technology Partnership. . . . . . . . . . . . . . . . . 25
Rural Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Technology Access Network (Tech-Net) . . . . . . . . . . . . . . . . . . 25

BUSINESS COUNSELING & TRAINING . . . . . . . . . . . . . . . . . . . . 25

Service Corps of Retired Executives (SCORE) . . . . . . . . . . 25

Small Business Development Centers (SBDCs). . . . . . . . . . 26

Paul D. Coverdell Drug-Free Workplace . . . . . . . . . . . . . . . . . 26

Business Information Centers (BICs) . . . . . . . . . . . . . . . . . . 26

Assistance for Veterans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Veterans Business Outreach Centers . . . . . . . . . . . . . . . . . . . . . 27

Assistance for Exporters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

U.S. Export Assistance Centers (USEACs) . . . . . . . . . . . . . . . . 27

Export Legal Assistance Network (ELAN) . . . . . . . . . . . . . . . . 27

TradeNet’s Export Advisor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Export Trade Assistance Partnership (E-TAP). . . . . . . . . . . . . . 28

Trade Mission Online . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Assistance for Native Americans. . . . . . . . . . . . . . . . . . . . . . . 28

Assistance for Small & Disadvantaged Businesses . . . . . . . . 28

Small Disadvantaged Business (SDB) Certification . . . . . . . . . . 28

8(a) Business Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

7(j) Management & Technical Assistance . . . . . . . . . . . . . . . . . . 29

Assistance for Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Women’s Business Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Online Women’s Business Center. . . . . . . . . . . . . . . . . . . . . . . . 29

Women’s Network for Entrepreneurial Training (WNET) . . . 30

BUSINESS INFORMATION SERVICES . . . . . . . . . . . . . . . . . . . . . . 30

Answer Desk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

SBA Home Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

U.S. Business Advisor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

www.BusinessLaw.gov . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

ADVOCACY FOR SMALL BUSINESS . . . . . . . . . . . . . . . . . . . . . . . 32

Office of Advocacy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Small Business & Agriculture Regulatory

Enforcement Ombudsman. . . . . . . . . . . . . . . . . . . . . . . . . . 32

DISASTER ASSISTANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Disaster Assistance Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Loans for Homes & Personal Property. . . . . . . . . . . . . . . . . 33

Real Property Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Personal Property Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Loans for Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Physical Disaster Business Loans . . . . . . . . . . . . . . . . . . . . . . . . 33

Pre-disaster Mitigation Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Economic Injury Disaster Loans (EIDLs) . . . . . . . . . . . . . . . . . 34

Military Reservist Economic

Injury Disaster Loans (MREIDLs). . . . . . . . . . . . . . . . . . . . . . 34

FOR MORE INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

LOAN REPAYMENT CHART. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

DID YOU KNOW . . . ? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

SBA FIELD OFFICES . . . . . . . . . . . . . . . . . . . . . . inside back cover
Programs & Services • 1

SBA Financial Assistance

Loan Programs

The SBA is Congressionally mandated to assist the

nation’s small businesses in meeting their financing

needs. The agency’s finance programs enhance the

ability of lenders to provide long- and short-term

loans to small businesses that might not qualify

through normal lending channels.

There are four basic types of SBA lending and

equity investment programs available: the 7(a) Loan

Guaranty Program, the 7(m) Microloan Program, the

504 Certified Development Company Loan Program

and the Small Business Investment Company

Program. Visit www.sba.gov/financing for more

information.

Basic 7(a) Loan Guaranty Program

The 7(a) Loan Guaranty Program is the SBA’s

primary loan program. It is also the most flexible,

since the agency can guarantee financing under the

program for a variety of general business purposes.

To qualify for an SBA guaranty, a small business must

meet the 7(a) loan guaranty criteria, and the lender

must certify that it cannot provide funding on reasonable terms except with an SBA guaranty. The SBA can

guarantee up to 85 percent of a loan that is $150,000

or less and 75 percent on loans greater than $150,000.

The maximum size loan that the SBA can guarantee is

$2 million, and the maximum guaranty that the SBA

can provide is $1 million. There are a few exceptions

noted separately in this brochure.

In guaranteeing the loan, the SBA assures the lender

that if the borrower does not repay the loan, the

government will reimburse the lender for its loss,

up to the percentage of the SBA’s guaranty. The

borrower, however, still remains obligated for the

full amount due. For more information, visit

www.sba.gov/financing/fr7aloan.html.

Note: The SBA does not provide grants to start or expand

a business.
2 • U.S. Small Business Administration

How It Works

You submit a loan application to an SBA participating

lender for initial review. If the lender approves the loan

subject to an SBA guaranty, a copy of the loan

application and a credit analysis are forwarded by the

lender to the SBA. 

Following SBA approval, the lending institution

closes the loan and disburses the funds. You make

monthly loan payments directly to your lender. 

No balloon payments, application fees or points are

permitted with 7(a) loans. The lender can tailor the

repayment plan for each business.

Use of Proceeds

A start-up or existing business may use the proceeds of

a 7(a) guaranteed loan to —

• expand or renovate facilities;

• purchase machinery, equipment, fixtures and

leasehold improvements;

• finance receivables and augment working capital;

• purchase land or buildings;

• finance seasonal lines of credit;

• construct commercial buildings; and

• refinance existing debt (under some circumstances).

Eligibility 

To be eligible, a business must be operated for profit

and not exceed the SBA’s size standards (see below).

Some types of businesses are not eligible, such as those

engaged in lending, real estate development, investment or speculation. Pyramid schemes and gambling

or illegal operations are also ineligible. All loans must

be used for business purposes.

Maximum Size Standards

A business is considered “small” if it does not exceed

the SBA’s established size standards. Size standards are

based either on the average number of employees during the preceding 12 months or on sales averaged over

the previous three years. The current established size

standards are:

• Manufacturing — from 500 to 1,500 employees,

depending on the industry
Programs & Services • 3

• Wholesaling — 100 employees for financial

programs (500 for contracting-assistance

programs)

• Services — from $4 million to $29 million in

average annual receipts or 1,500 employees,

depending on the industry

• Retailing — from $6 million to $24.5 million

in average annual receipts, depending on the

nature of the business

• General and heavy construction — from $17 million to $28.5 million in average annual receipts

• Special trade construction — $12 million in

average annual receipts

• Agriculture — from $750,000 to $10.5 million in

average annual receipts

For additional information, see Small Business Size

Standards, p. 23.

What You Need to Take to the Lender

Documentation requirements may vary. Contact your

lender for the information you must supply. Common

requirements include:

• Purpose of the loan

• History of the business

• Financial statements for three years (existing

businesses)

• Schedule of term debts (existing businesses)

• Aging of accounts receivable and payable

(existing businesses)

• Projected opening-day balance sheet (new

businesses)

• Lease details

• Amount of investment in the business by the

owner(s)

• Projections of income, expenses and cash flow

• Signed personal financial statements

• Personal résumé(s)

What the SBA Looks for

• Good character

• Management expertise and the commitment

necessary for success
4 • U.S. Small Business Administration

• Ability to repay the loan on time from the projected operating cash flow

• Reasonable personal contribution and/or business

equity, which along with the loan proceeds enable

the borrower to operate the business on a sound

financial basis (for new businesses, this includes

the resources to withstand start-up expenses and

the initial operating phase)

• Feasible business plan

• Adequate equity or investment in the business 

• Sufficient collateral

Terms, Interest Rates and Fees 

Note: All references to the prime rate in this brochure mean

the lowest prime rate on the day the SBA receives the application. This rate is printed in The Wall Street Journal on

the next business day.

Your loan-repayment schedule (see the Loan Repayment

Chart on pp. 36-37) depends on the use of the proceeds

and the ability of your business to repay the loan. The

general terms are —

• five to 10 years for working capital; and

• generally up to 25 years for fixed assets such as the

purchase or major renovation of real estate or the

purchase of equipment (not to exceed the useful

life of the equipment).

Both fixed and variable interest rates are available. The

maximum rate is generally 2.25 percent over the

lowest prime rate for a loan with a maturity of less

than seven years and 2.75 percent over prime for a

maturity of seven years or longer. For loans of $50,000

or less, or the SBAExpress and Community-Express

programs, the lender’s rate may be slightly higher.

The SBA charges the lender a nominal fee to provide

a guaranty, and the lender may pass this charge on to

you. The fee is based on the maturity of the loan and

the dollar amount that the SBA guarantees. On a loan

with a maturity of one year or less, the fee is 0.25 percent of the guaranteed portion of the loan. When the

maturity is more than one year, and the total loan is for

$150,000 or less, the guaranty fee is 2 percent of the

amount guaranteed by the SBA, and lenders may

retain one quarter of this fee. However, the lender can
Programs & Services • 5

seek reimbursement from the borrower for an amount

equal to the full 2 percent of the guaranteed

portion. For loans greater than $150,000, but not

exceeding $700,000, the guaranty fee is 3 percent of

the guaranteed amount, and the lender is not allowed

to keep any of the fee. For loans greater than $700,000,

the guaranty fee is 3.5 percent of the guaranty amount.

Collateral

To adequately secure the loan, you must pledge

sufficient assets to the extent they are reasonably available. Personal guaranties are generally required from

all principals owning 20 percent or more of the business. Liens on personal assets of the principals also may

be required. No loan will be declined for insufficient

collateral alone, as long as all available and worthwhile

collateral (both business and personal) is pledged as

security for the loan.

Special 7(a) Loan Guaranty Programs

In addition to the basic loan guaranty, the SBA has 7(a)

programs for specialized needs. Unless otherwise indicated, the rules, regulations, interest rates, fees, and

other guidelines of the basic 7(a) loan guaranty govern

these programs as well.

CAPLines Loan

Through CAPLines, the SBA helps small businesses

meet their short-term and cyclical working-capital

needs. A CAPLines loan can be up to $2 million (except

for the Small Asset-Based Line; see p. 6), and the SBA will

guarantee up to $1 million, as with the basic 7(a) guaranty. There are five short-term working-capital loan

programs for small businesses under CAPLines:

Seasonal Line: This line advances funds against anticipated inventory and accounts receivable for peak seasons and seasonal sales fluctuations. It can be revolving

or nonrevolving.

Contract Line: This line finances the direct labor and

material costs associated with performing assignable

construction, service or supply contracts. It can be

revolving or nonrevolving.

Builders Line: If you are a small general contractor or

builder constructing or renovating commercial or residential buildings for resale, this line can finance your
6 • U.S. Small Business Administration

direct labor and material costs. The building project

serves as the collateral, and loans can be revolving or

nonrevolving.

Standard Asset-Based Line: This program guarantees asset-based revolving lines of credit that are structured under SBA rules and provided by lenders. These

loans let businesses borrow against their

existing inventory and accounts receivable provided

such assets have value, and the line is repaid when the

business collects the cash from the sale of these assets.

These loans are continually disbursed and repaid, and

the borrower must provide a report on the status of

the inventory and/or receivables with each disbursement. This line is generally used by businesses providing credit to other businesses. Since these loans

require continual servicing and monitoring of collateral, the lender may charge additional fees. 

Small Asset-Based Line: This is an asset-based

revolving line of credit up to $200,000. It operates

basically like a standard asset-based line. Some of

the stricter servicing requirements are waived, however, if the business can consistently show repayment

ability from its cash flow.

Terms, Interest Rates & Fees 

Each of the five lines of credit has a maximum

maturity of five years, but because each is tailored to

your individual needs, a shorter initial maturity may

be established. You may use CAPLines funds as

needed throughout the term of the loan to purchase

assets, as long as sufficient time is allowed to convert

the assets into cash by maturity.

You and your lender negotiate the CAPLines interest

rate, with the maximum set at 2.25 percent over the

prime rate. The guaranty fee is the same as for any

standard 7(a) loan. The SBA places no servicing-fee

restrictions on the lender for the Standard AssetBased Line, but it does require full disclosure to

ensure the fees are reasonable. On all other CAPLines

loans, the additional fee is limited to 2 percent

based on the average outstanding balance. Visit

www.sba.gov/financing/frcaplines.html for more

information.
Programs & Services • 7

Collateral

Your primary collateral will be the short-term assets

financed by the loan.

Defense Loan & Technical

Assistance (DELTA)

If you own a defense-dependent small business that has

been adversely affected by defense cuts or that

is located in a defense-impacted community, the

DELTA Program can help you diversify into the commercial market. A joint effort of the SBA and

the Department of Defense, DELTA provides both

financial and technical assistance. The SBA processes,

guarantees and services DELTA loans generally

through the regulations, forms and operating

criteria of the 7(a) Loan Guaranty Program or the 504

Certified Development Company Program (see p. 17).

Eligibility

To be eligible, your business must meet 7(a) or 504

program criteria and have derived at least 25 percent of

its total revenue during any one of the previous five

operating years from DoD contracts, the Department

of Energy defense-related contracts, or subcontracts in

support of defense prime contracts. 

The business must also —

• use the loan to modernize or expand facilities in

order to diversify operations while remaining in

the national technical and industrial base, or

• be adversely impacted by reductions in defense

spending and use the loan to retain the jobs of

defense workers, or

• be located in an adversely impacted community

and use the loan to create new economic activity

or jobs in that community.

Maximum Loan & Guaranty Amounts

The maximum gross loan amount for a DELTA loan

under 7(a) is $1.25 million. The maximum guaranty

under 7(a) or 504 is $1 million. 

Credit Analysis

DELTA loans may require special handling due to

complicated credit analyses. Due to the transitional

state of the business, the applicant may be unable to

demonstrate repayment based on past operations
8 • U.S. Small Business Administration

despite significant collateral. Revisions to the law

allow the SBA to resolve reasonable doubts in the

applicant’s favor. For more information, visit

www.sba.gov/financing/frdelta.html.

Technical Assistance

A borrower may also require technical assistance

to make the transition to the commercial market. This

assistance is provided through the SBA’s small business

development centers, the Service Corps of Retired

Executives, other federal agencies, and other technical

and management assistance providers. You will find a

directory of technical assistance providers by visiting:

www.sba.gov/financing/frdelta.html.

Community Adjustment &

Investment Program (CAIP) 

Established in response to changed trade patterns with

Canada and Mexico resulting from the North

American Free Trade Agreement, CAIP creates

new, sustainable jobs and preserves existing ones. The

program is a partnership between the federal government (primarily the U.S. Department of the Treasury,

the SBA and the U.S. Department of Agriculture)

and the North American Development Bank. Visit

www.sba.gov/financing/frcaip.html for more

information.

Eligibility

• Business applicants must be located in CAIPeligible communities. Community eligibility is

based upon an analysis of NAFTA-related job

losses within the context of local unemployment

rates. For CAIP-eligible communities, visit

www.sba.gov/financing/caipeligibleareas.pdf

or www.sba.gov/financing/caipurban.pdf.

• For federally funded programs, applicants also

must be able to demonstrate that within 24

months and as a result of the loan, they will create

or preserve at least one job per $70,000 of federally guaranteed funds (the SBA portion) they

receive.

Under CAIP, credit is made available primarily

through loan guaranties provided either under the 7(a)

Loan Guaranty Program or the USDA Business and

Industry Loan Guarantee Program. The SBA’s 7(a)
Programs & Services • 9

program can guarantee up to 75 percent ($1 million

SBA share) on a maximum loan of $2 million. The 504

Program can generally guarantee up to $1 million. For

eligible applicants, NADBank pays the loan guaranty

fee or participates as a direct lender. Visit the

NADBank Web site at www.nadbank-caip.org for

more information, or call the NADBank Los Angeles

office at 562-908-2100.

Export Working Capital (EWCL) Loan

The Export Working Capital Loan was developed to

assist exporters seeking short-term working capital for

their transactional financing needs. The loan funds

may be used to finance the manufacturing costs of

goods for export, the purchase of goods or services,

foreign accounts receivable and standby letters of credit (used for performance bonds, bid bonds or payment

guaranties to foreign buyers). The SBA can guarantee

up to 90 percent of a secured loan or $1 million,

whichever is lower. The EWCL uses streamlined documentation; turnaround is usually within 10 business

days. Borrowers may also apply to the SBA for a letter

of preliminary commitment (see Loan Prequalification

Program, p. 16).

When an EWCL is combined with an International

Trade Loan (see below), the SBA’s combined exposure

can increase to $1.25 million (with a $1 million maximum for the working-capital portion).

Terms, Interest Rates & Fees

You may have other SBA guaranties along with

an EWCL as long as the SBA’s exposure for

working-capital loans does not exceed $1 million. The

maturity for an EWCL typically matches

a single transaction cycle or supports a line of credit,

generally with a maximum term of 12 months. With

annual renewals, however, it is possible to have a loan

maturity of up to three years. The guaranty fee is 0.25

percent of the guaranteed portion of the loan. You and

the lender negotiate interest rates and fees. Visit

www.sba.gov/financing/frexport.html for more

information.

International Trade Loan (ITL)

The International Trade Loan Program guarantees

loans to small businesses engaged in international
10 • U.S. Small Business Administration

trade, prepared to engage in international trade, or

adversely affected by competition from imports.

Under this program, the SBA can guarantee as much

as $1.25 million in combined working-capital and

facilities-and-equipment loans.

Use of Proceeds

Fixed Assets — Proceeds may be used for purchasing land and buildings; renovating, improving or

expanding existing facilities; building new facilities; purchasing or reconditioning machinery, fixtures and equipment; and making other improvements that will be used within the United States

for producing goods or services.

Working Capital — Proceeds may be used for a

permanent working-capital loan or as transactionspecific financing under the provisions of the

Export Working Capital Loan.

Note: International Trade Loan proceeds may not be used

to repay existing debt.

Guaranty Coverage 

For the fixed-asset and permanent working-capital

portions of an International Trade Loan, the SBA

can guarantee up to 85 percent for loans up to a maximum loan amount of $150,000, and up to 75 percent

for loans above $150,000. Under the International

Trade Loan, the working-capital portion of the SBA’s

guaranty is limited to $1 million, the guaranty for fixed

assets is limited to $1 million and the combined guaranties cannot exceed $1.25 million.

Eligibility 

The applicant must establish that the loan proceeds

will expand an existing export market or develop

new export markets, or that the business is adversely

affected by import competition. 

Terms, Interest Rates & Fees 

Terms and interest rates are negotiated between the

applicant and the lender. The SBA charges a guaranty

fee of 0.25 percent for a loan with a maturity of

12 months or less. For terms longer than 12 months,

the SBA guaranty fee is the same as for any standard

7(a) guaranteed loan. 
Programs & Services • 11

Collateral

The lender must take a first-lien (or first-mortgage)

position on the fixed assets financed under this

program. Only collateral located in the United States,

its territories and possessions is acceptable.

Maturity

A loan for facilities or equipment may have a maximum maturity of up to 25 years. The workingcapital portion of the loan can be made according

to the provisions of the Export Working Capital

Loan. The maturity is typically 12 months or less

if the financing is for a revolving line. The maturity for a permanent working-capital loan can

be up to 10 years. For more information, visit

www.sba.gov/financing/frinternational.html.

Energy & Conservation Loan

Under this program, financing is available for eligible

small businesses engaged in the engineering, manufacturing, distributing, marketing, and installing or servicing products or services designed to conserve the

nation’s energy resources. An eligible business may use

the loan to buy land for plant construction; convert or

expand existing facilities; purchase machinery, equipment, furniture, fixtures, supplies and materials; or

provide working capital for entry or expansion into

eligible conservation project areas. The loan may not

be used for acquiring an energy business or for purchasing energy devices for the business’ own use.

This program permits up to 30 percent of the loan

proceeds to be used for research and development,

which is not permitted in any other 7(a) program.

The maximum SBA guaranty for loans up to $150,000

is 85 percent. For higher loans up to $1 million, the

maximum guaranty is 75 percent.

Pollution Control Loan

This program assists small businesses that are

planning, designing or installing a “pollution control

facility,” which includes most real or personal property

that will reduce pollution. Unlike the Energy Conservation Loan, the Pollution Control Loan is for the

end-user of the pollution control facility. Visit

www.sba.gov/financing/frpollute.html for more

information.
12 • U.S. Small Business Administration

Qualified Employee Trusts Loan

The SBA can guarantee 7(a) loans to eligible employee

trusts that meet the SBA’s size and policy requirements,

are part of a plan sponsored by their employer, and

qualify under the Internal Revenue Code (as an

Employee Stock Ownership Plan) or the Department

of Labor (under the Employee Retirement Income

Security Act). Loan proceeds may be used by an

employee trust for a growth and development loan,

whereby the trust re-lends the loan proceeds to the

employer by purchasing qualifying securities (not necessarily voting stock) in the employer’s business;

or a change of ownership loan, whereby employees

acquire controlling interest in the employer’s business.

Collateral for the loan includes the assets of

the employer’s business. For more information, visit

www.sba.gov/financing/frqet.html.

Streamlined Applications & Approvals

Under the SBA’s loan-guaranty programs, the borrower applies to a lending institution, not the SBA.

If it determines the SBA’s guaranty is necessary

to approve the loan, the lender then applies to the SBA

for the guaranty. The SBA can process a lender’s

request through a variety of methods. The following

methods are used most frequently: Standard, Certified

Lenders, Preferred Lenders, SBALowDoc, SBAExpress

and CommunityExpress. You may obtain a list of SBA

participating lenders from your local SBA office or at

www.sba.gov/financing/lender.html. 

Standard Application Process

The lender submits a completed loan application,

including a credit analysis, to the SBA field office that

covers the territory where the applicant business is

located. After receiving all the documentation, the

SBA analyzes the entire application, then makes its

decision. The process may take up to 10 days to

complete.

Certified Lenders Program (CLP)

The CLP provides service on loan applications

received from lenders who have successful SBA track

records and a thorough understanding of SBA lending
Programs & Services • 13

policies and procedures. Under this program, the SBA

reviews the lender’s credit analysis rather than conducting a complete second analysis. This reduces the

SBA’s targeted response time to three days. Certified

lenders can submit applications under standard processing if they wish.

Preferred Lenders Program (PLP)

The PLP maximizes the use of qualified, private

lenders in the agency’s financial-assistance delivery

system. Under this program, the SBA delegates

loan underwriting, closing, and most servicing and

liquidation authority and responsibility to carefully

selected lenders. The PLP is designed only for the

strongest credits. The SBA processes PLP loans at

its PLP center in Sacramento, Calif. Turnaround usually takes less than one day. Preferred loans receive the

same 75 percent guaranty rate (85 percent on loans of

$150,000 or less) as other SBA-backed loans.

Preferred lenders may use certified or standard

processing, if they wish.

Low Documentation Loan (SBALowDoc)

SBALowDoc is the SBA’s quick and easy program that

provides a guaranty on small business loans of

$150,000 or less. Once you have met your lender’s

requirements for credit, the lender may request an

SBALowDoc guaranty for up to 85 percent of the loan

amount. You complete the front of a one-page SBA

application, and the lender completes the back. At

SBALowDoc centers, the agency processes completed

applications within 36 hours. 

The repayment terms for SBALowDoc are the same as

for any other 7(a) loan. Eligibility is basically the same

except:

• Proceeds may not be used to repay certain types

of existing debt; and

• The program is not designed to accommodate

loans requiring unique or complex structures.

Visit www.sba.gov/financing/frlowdoc.html for

more information.

SBAExpress

SBAExpress provides selected lenders with a 50 percent guaranty on their loans in exchange for allowing
14 • U.S. Small Business Administration

them to use their own applications and documentation. This method makes it easier and faster for

lenders to provide small business loans of $250,000 or

less. The SBA provides a rapid response through its

PLP processing center in Sacramento, Calif. — within 36 hours of receiving the complete application

package. Lenders use their own procedures to approve

and service the loans. 

Terms

Like most 7(a) loans, the maturity of an SBAExpress

term loan is usually five to seven years for working

capital and up to 25 years for real estate or equipment

(subject to the useful economic life of the equipment).

The termination date for revolving credits must be no

later than seven years after the first disbursement.

Visit www.sba.gov/financing/frfastrak.html for

more information.

CommunityExpress

The CommunityExpress pilot program is designed

to spur economic development and job creation

in untapped rural and inner city communities by providing loans and technical assistance. Loan

proceeds may be used for most business purposes,

including start-up, expansion, equipment purchases,

working capital, inventory or real-estate acquisitions. 

To be eligible for CommunityExpress, current or

prospective small businesses must be located in

low- and moderate-income urban and rural areas. 

While CommunityExpress is similar to SBAExpress,

there are some differences. 

• CommunityExpress focuses on predesignated

geographic areas, primarily low- and moderateincome urban and rural areas.

• The maximum loan amount under

CommunityExpress is $250,000.

• The CommunityExpress guaranty is 85 percent

for loans up to $150,000 and 75 percent for loans

greater than $150,000 up to $250,000.

• CommunityExpress lenders, together with the

National Community Reinvestment Coalition,

provide hands-on technical training and support,

both before and after loan closings, through
Programs & Services • 15

community-based, nonprofit NCRC member

organizations.

Visit www.sba.gov/financing/frcomexp.html for

more information.

SBA ExportExpress

SBA ExportExpress is a subprogram of SBAExpress that

provides lenders with an 85 percent guaranty on their

small business export loans up to a maximum loan

amount of $250,000. The guaranty is 85 percent for

loans up to $150,000 and 75 percent for loans between

$150,000 and $250,000. Any lender approved to participate in SBAExpress may participate in SBA

ExportExpress. Lenders use the same streamlined and

expedited loan review and approval procedures for

SBA ExportExpress as they do for SBAExpress.

SBA ExportExpress loan proceeds may be used for

most export-related business purposes including

foreign market development activities such as tradeshow participation and product-literature translation.

SBA ExportExpress loans may support standby letters

of credit for either bid or performance bonds, revolving lines of credit for export purposes, term loans, and

other financing to enable small business concerns,

including small business export trading companies and

small business export management companies, to

develop foreign markets. To be eligible for SBA

ExportExpress assistance, applicants must have been in

business operation, though not necessarily in exporting, for at least 12 months.

SBA ExportExpress combines SBA’s small business

lending assistance with its technical assistance programs to help small businesses obtain export financing.

Technical assistance is provided by U.S. Export

Assistance Centers and SBA resource partners after the

loan is approved. For more information, visit

www.sba.gov/financing/frexportexpress.html.

Loan Prequalification

Under this program, the applicant may go to a lender

pre-approved by the SBA for an SBA loan guaranty.

Local SBA district offices determine their demographic markets for the program and select, train and

monitor intermediaries.
16 • U.S. Small Business Administration

An SBA-designated intermediary helps the prospective

borrower develop a viable loan application package

(and may charge a reasonable fee for this service). The

intermediary submits the complete package to the SBA

for expedited consideration. The agency usually makes

a decision within three days.

If the application is approved, the SBA issues a letter of

preliminary commitment stating the agency’s intent to

guarantee the loan subject to the stated terms and conditions provided the applicant can find a lender. The

maximum loan amount is generally $250,000. The

SBA will guarantee up to 75 percent (85 percent on

loans of $150,000 or less). The intermediary helps the

borrower locate a lender offering the most competitive

rates and terms.

Visit www.sba.gov/financing/frprequal.html for

more information.

Eligibility Factors Different From the

Basic 7(a) Program Requirements:

• Businesses must be at least 51 percent owned,

operated and managed by members of one of the

groups designated as eligible to participate.

• Businesses, including affiliated companies, must

employ 100 or fewer workers in total.

Other SBA Loan Programs 

7(m) Microloan

The SBA’s Microloan Program provides very small

loans up to $35,000 to small businesses and not-forprofit child-care centers through a network of locally

based intermediary lenders. In addition to making the

loans, the intermediaries provide management and

technical assistance to microborrowers and potential

microborrowers. 

Small businesses must apply directly to the SBA’s local

intermediary lender. Contact your closest SBA office

to find out if there is one in your area.

Use of Proceeds

Microloans may be used to finance furniture, fixtures,

equipment, inventory, materials and supplies. They

may be used to finance receivables and for working

capital. They may not be used to purchase real estate.
Terms & Interest Rates

The maximum term for a microloan is six years.

Interest rates can be up to 8.5 percent over the

intermediary’s cost of borrowing from the SBA.

Microloans are direct loans from the intermediary

lenders. They are not guaranteed by the SBA.

Collateral

Each intermediary lender will have its own requirements regarding collateral and personal guaranties.

Eligibility 

Virtually all types of for-profit businesses that meet the

SBA’s size and type-of-business standards for the 7(a)

Loan Guaranty Program may apply for a microloan.

504 Certified Development

Company (CDC)

The 504 Certified Development Company Program

provides growing businesses with long-term, fixed-rate

financing for major fixed assets, such as land and

buildings. Approximately 270 CDCs nationwide work

with the SBA and private-sector lenders to provide

financing to small businesses.

Generally, CDCs are nonprofit corporations set up to

contribute to the economic development of their local

communities. The program is designed to enable small

businesses to create and retain jobs; the CDC’s portfolio must create or retain at least one job for every

$35,000 of debenture proceeds provided by the SBA.

Typically, a 504 project includes —

• a loan secured with a senior lien on the financed

asset made by a private-sector lender (covering

50 percent of the fixed financing),

• a loan secured with a junior lien made by a CDC

(funded by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the financing,

and

• a contribution of at least 10 percent equity from

the borrower.

The SBA-guaranteed debentures are pooled monthly

and sold to private investors. The maximum SBA

debenture generally is $1 million (and up to $1.3 million if the financing satisfies certain public policy

goals).

Programs & Services • 17
18 • U.S. Small Business Administration

Use of Proceeds

Proceeds from 504 loans must be used for fixed-asset

projects such as —

• purchasing land and improvements, including

existing buildings, grading, street improvements,

utilities, parking lots and landscaping;

• constructing, modernizing, renovating or converting existing facilities; and

• purchasing machinery and equipment. 

The 504 program cannot be used for working

capital or inventory, consolidating or repaying debt, or

refinancing.

Terms, Interest Rates & Fees 

Interest rates on 504 loans are fixed at the time of the

debenture sale. The interest rates approximate the

current market rate for five- and 10-year U.S.

Treasury issues, plus a small increment. Maturities

of 10 and 20 years are available.

Fees total approximately 3.5 percent of the debenture

and may be financed with the loan. These include a

CDC processing fee of 1.5 percent, a guaranty fee, a

funding fee and an underwriting fee.

Collateral

Generally, personal guaranties of the owners of

20 percent or more of the business are also required.

Eligibility

To be eligible, a business with its affiliates must be

operated for profit and fall within the size standards

set by the SBA. The business must also have a

tangible net worth of $6 million or less and an average

net income of $2 million or less after taxes for the preceding two years. Loans cannot be made to businesses engaged in speculation or investment.

SBA Franchise Registry

The SBA Francise Registry is a national registry of

franchises. The SBA reviews the franchise agreements

of the franchisors listed on the Registry. The benefit

of being listed on the SBA Franchise Registry is that

whenever a business operating under a franchise

agreement of a listed franchise applies for a loan, the

SBA’s eligibility review process is expedited because
Programs & Services • 19

the complex issue of control has already been satisfied.

However, the business still must meet additional eligibility issues associated with an SBA loan such as size,

use of proceeds, nondiscrimination, repayment ability

and so on. 

Franchises not listed on the registry are not necessarily ineligible for SBA financial assistance. The

applications of such franchises take longer to process,

however, because first a determination must be made

that no affiliation between franchisee and franchisor

exists. For further information, visit the Franchise

Registry at www.franchiseregistry.com.

Loan Repayment

The chart on pages 36 -37 provides the information

you need to determine your monthly loan payment.

The monthly payment includes principal and interest.

Should Problems Arise

If your small business encounters difficulties, the SBA

is ready to help with expert business counseling and

assistance. In the event a borrower is unable to meet

the obligations of an SBA loan, the agency will work

closely with the lender and/or borrower to negotiate a

solution. Only when a solution cannot be found will

the SBA move to liquidate the assets securing the loan.

Equity Investment

Small Business Investment Company

(SBIC)

The Small Business Investment Company Program

fills the gap between the availability of venture

capital and the needs of small start-up or growing

businesses.

Licensed and regulated by the SBA, SBICs are

privately owned and managed investment companies

that make capital available to small businesses through

investments or loans. They use their own funds plus

funds obtained at favorable rates with SBA guaranties.

SBICs are for-profit companies whose incentive is to

share in the success of small businesses. In addition to

equity capital and long-term loans, SBICs provide

debt-equity investments and management assistance.
20 • U.S. Small Business Administration

The SBIC Program provides funding to all types

of manufacturing and service industries. Some investment companies specialize in certain fields; others

seek out small businesses with new products or services because of their strong growth potential. Most,

however, consider a wide variety of investment opportunities. 

Providing the same services as SBICs, specialized

small business investment companies invest

in socially or economically disadvantaged small

companies; typically, however, they invest in businesses during their growth stages and make smaller

investments. For more information, visit

www.sba.gov/inv.

New Markets Venture Capital

(NMVC)

The New Markets Venture Capital Program,

modeled on the SBIC Program, combines equity

investing and hands-on technical assistance to foster

new business growth and job creation specifically in

rural and inner city low-income areas.

Selected by the SBA through a competitive process,

NMVC companies are privately owned and managed

for-profit entities offering equity financing and

intensive operational assistance to small businesses

primarily located within targeted low-income areas.

NMVC companies use their own private capital plus

debentures obtained at favorable rates with SBA

guaranties for investing. They also provide technical

assistance to the small businesses in which they invest,

using their own funds plus resources provided by the

SBA in the form of matching operational assistance

grants.

The operational assistance grant component of the

NMVC program helps remove most barriers to

obtaining specific, intensive technical assistance

that may not otherwise be available in low-income

areas. NMVC companies are expected to use the

operational assistance funds to work closely with

low-income small businesses to make the businesses

and the investments a success. Specialized SBICs,

which raise additional private capital for investing,

may also apply for NMVC operational assistance
Programs & Services • 21

grants. Visit www.sba.gov/inv/venture.html for

more information.

Surety Bonds

Surety Bond Guarantee

By law, prime contractors to the federal government

must post surety bonds on federal construction

projects valued at $100,000 or more. Many state, county, city and private-sector projects require bonding as

well. The SBA can guarantee bid, performance and

payment bonds for contracts up to $2 million for

eligible small businesses that cannot obtain surety

bonds through regular commercial channels. The SBA

guarantees bonds in two ways: 

• Prior Approval Sureties — The SBA must

approve guarantees before these sureties can issue

guaranteed bonds.

• Preferred Sureties — The SBA authorizes

preferred sureties to issue, monitor and service

bonds without prior SBA approval.

The SBA’s Web site for surety bond information is

www.sba.gov/osg.

Federal Government

Contracting Assistance

The SBA negotiates small business goals with each

federal agency to ensure that the governmentwide

small business goal of 23 percent, required by the

Small Business Reauthorization Act of 1997, is

met. The SBA monitors the agencies’ progress toward

achievement of the goal.

Small Business Size Determinations

The SBA issues formal size determinations when

the size of a business is questioned under a federal procurement. This ensures that only legitimate

small businesses receive contract awards under

procurement preference programs.

Natural Resources Sales

This program helps small businesses receive their

fair share of federal property for sale or disposal,

including the sale of timber, royalty oil, coal leases and

other mineral leases, and surplus property.
22 • U.S. Small Business Administration

Prime Contracting

To increase opportunities for small businesses in the

federal acquisition process, the SBA negotiates goals

for small business set-asides, identifies new small business sources, and counsels small companies on how to

do business with the federal government. It also

conducts surveillance reviews of federal purchasing

facilities to assess compliance with the procurement

provisions of the Small Business Act.

Subcontracting

The SBA also helps small businesses receive the

maximum practical opportunity to participate in

federal contracts as subcontractors and suppliers.

(By law, certain percentages of large federal contracts

must be subcontracted to small businesses.)

Certificate of Competency (CoC)

The CoC Program provides an appeal process to

small businesses that have been denied contracts with

the U.S. government for a lack of “responsibility” or a

perceived inability to perform satisfactorily.

Contracting Assistance for Women

Business Owners (CAWBO)

This office works to increase federal contracting

opportunities for women-owned small businesses

and to increase the number of women-owned small

businesses successfully competing in the federal

marketplace. Federal agencies may “restrict competition” when they solicit supplies or services

in industries where women-owned small businesses

are underrepresented, if two or more such businesses

are expected to compete, and the government

expects to make an award at a fair and reasonable

price. Such contracts cannot exceed $3 million for

services or $5 million for manufacturing. Visit

www.sba.gov/gc/indexprograms-cawbo.html for

more information.

Procurement Marketing & Access

Network (PRO-Net®)

An online database of information on thousands of

small businesses, the SBA’s Pro-Net® serves as a

search engine for contracting officers, a marketing
Programs & Services • 23

tool for small companies, and a link to procurement

opportunities and other important information.

Pro-Net® is the database on 8(a) program participants, qualified HUBZone small business concerns,

and small disadvantaged businesses. Currently more

than 200,000 businesses are listed in Pro-Net®.

It also provides links to the Federal Business

Opportunities Web page, federal agency home pages

and other sources of procurement opportunities.

PRO-Net® offers free registration to small businesses. You can access the PRO-Net® Web site at

www.pronet.sba.gov and follow the instructions.

SUB-Net

SUB-Net, an extension of PRO-Net®, is primarily for

prime contractors to post subcontracting opportunities. These opportunities may or may not be reserved

for small businesses. They may include solicitations or

other notices, such as a search for “teaming” partners

and/or subcontractors for future contracts. The SUBNet site enables small businesses to use their limited

resources to identify and bid on concrete, tangible

opportunities. While the Web site is designed primarily as a place for large businesses to post solicitations

and notices, federal agencies, state and local governments, nonprofit organizations, colleges and universities, and small businesses can also use it for the

same purpose. You can access SUB-Net through the

PRO-Net® home page by clicking on the

“Subcontracting Opportunities” bar.

Small Business Size Standards

The SBA’s Office of Size Standards can tell you if your

business meets the federal size standards for a small

business. The office develops and prepares

regulations on size standards as needed, following

agency and federal government rule-making

procedures. The regulations determine which

businesses are eligible for the SBA’s financial- and

procurement-assistance programs. You can obtain

more information on size standards by logging on to

www.sba.gov/size.
24 • U.S. Small Business Administration

HUBZone Empowerment

Contracting

This program encourages economic development

in historically underutilized business zones —

“HUBZones” — through the establishment of

federal contract award preferences for qualified

small businesses located in such areas. These

preferences provide for set-asides, sole source awards

and price credits for HUBZone small businesses, and

establishes goals for awards to such businesses. To

qualify for the HUBZone Program, a small business

generally must be located in a “HUBZone,” be owned

and controlled by one or more U.S. citizens, and have

at least 35 percent of its employees residing in a HUBZone. A “HUBZone” is an area that is located in one

or more of the following: a “qualified census tract;” a

“non-metropolitan county” with a median household

income of less than 80 percent of the state median

household income or with an unemployment rate of

not less than 140 percent of the statewide average; or

lands within the boundaries of federally recognized

Indian reservations. For more information, visit the

HUBZone Web site at www.sba.gov/hubzone.

Research & Development Assistance

The goals of SBA’s research and development assistance are to strengthen and expand the competitiveness of small, high-tech research and development

businesses in the federal marketplace, and to assist

in the commercialization of the results of federal

R&D efforts. For more specific information, access

www.sba.gov/sbir. 

Small Business Innovation Research

(SBIR)

Under the SBIR Program, small businesses propose

innovative ideas to meet the specific research and

R&D needs of the federal government. The

program also promotes commercialization of the

results generated. Federal grants are awarded on

a competitive basis.
Programs & Services • 25

Small Business Technology Transfer

(STTR)

This program also awards federal grants on a

competitive basis. However, it requires the small company competing for an R&D project to collaborate

with a nonprofit research institution from the submission of the proposal to the completion of the

designated effort.

Small Business Research,

R&D Goaling

The SBA’s Office of Technology measures and reports

the amount of federal funding for research and R&D

(excluding the amounts for SBIR and STTR)

awarded to small businesses each year by the major

research and R&D federal agencies. 

Federal and State Technology

Partnership

This program enhances or develops within the

states the technological competitiveness of small

businesses. Cooperative agreements are awarded

on a competitive basis to eligible organizations or

individuals who, among other things, receive an

endorsement from the governor of the state.

Rural Outreach

This program provides grants to approximately

25 states to increase participation of businesses

located in underserved states and territories in the

SBIR and STTR programs.

Technology Access Network (Tech-Net)

The Technology Access Network database serves as

a chief resource for federal acquisition agencies, 

venture capitalists and others seeking to do business

with small, high-technology businesses under all the

Research and Development Assistance programs.

Business Counseling

& Training

Service Corps of Retired Executives

(SCORE)

Nationwide, 11,500 volunteers in 389 SCORE

chapters provide free, expert advice based on their
26 • U.S. Small Business Administration

many years of firsthand experience and shared knowledge on virtually every aspect of business. SCORE

counselors are located at SBA field offices, business

information centers and some of the SBA’s small business development centers. Call your closest SBA field

office to find the SCORE chapter nearest you, or

access SCORE online at www.score.org.

Small Business Development Centers

(SBDCs)

Funded and administered by the SBA, SBDCs

provide a variety of management and technicalassistance services to small businesses and potential

entrepreneurs. SBDCs are a cooperative effort among

the SBA, the academic community, the private sector,

and state and local governments. Together with the

SBA’s certified development companies, SBDCs also

can help you prepare an SBA loan application. There

are approximately 1,000 SBDC locations, primarily at

colleges and universities in all 50 states and the U.S.

territories. For the SBDC closest to you, please call

your local SBA office, or check the list of centers at

www.sba.gov/sbdc/index.html.

Paul D. Coverdell Drug-Free Workplace

This program provides grants or contracts to intermediaries and SBDCs to assist small businesses in

setting up drug-free workplace programs. A drug-free

workplace program consists of a written policy, drug

and alcohol abuse prevention training, drug testing,

an employee-assistance program and continuing

education.

Business Information Centers (BICs)

BICs — supported by local SBA offices — can assist

you by providing access to state-of-the-art computer

hardware and software, and through counseling by

SCORE volunteers. BICs have resources that address

a broad variety of business start-up and development

issues. You can receive help with writing a comprehensive business plan, evaluating and improving your

marketing and sales techniques, diversifying into new

product and/or service areas, pricing your products, or

exploring exporting opportunities. The BIC Web site

is www.sba.gov/bi/bics/index.html.
Programs & Services • 27

Assistance for Veterans

Veterans Business Outreach Centers

VBOCs ensure that small businesses owned and controlled by eligible veterans have access to entrepreneurial training, business development assistance,

counseling and management assistance. The agency

has cooperative agreements with four centers — one

each in Florida, New York, Texas and West Virginia. For more information visit the Web site at

www.sba.gov/vets.

Assistance for Exporters

U.S. Export Assistance Centers (USEACs) 

The SBA delivers its international programs and services primarily through U.S. Export Assistance

Centers. These centers offer a full range of federal

export programs and services from the SBA, the U.S.

Department of Commerce, the Export-Import Bank

of the United States, and other public and private

organizations. Located in 19 cities nationwide,

USEACs use the latest technology to provide export

marketing and trade finance assistance, customized

counseling for companies committed to exporting,

and customer service. For more information, or to

find the USEAC nearest you, visit the Web site at

www.sba.gov/oit/export.

Export Legal Assistance Network (ELAN)

In conjunction with the Federal Bar Association, the

SBA and the U.S. Department of Commerce offer

exporters a complimentary initial legal consultation

with an international trade attorney. To access this

program, contact your local SBA field office.

TradeNet’s Export Adviser

TradeNet is an Internet site for exporters created

through a partnership of public and private entities led

by the SBA. The Web site offers market research,

export laws, business opportunities, trade shows and

events, research tools, financing information, and

forms and documentation. TradeNet also gives

you the capability of creating a personalized page

called MyTradeNet. You can access TradeNet at

www.tradenet.gov.
28 • U.S. Small Business Administration

The Export Trade Assistance Partnership

(E-TAP)

E-TAP is a program designed to help small business

owners become export-ready and compete in global

markets. The program consists of four distinct segments: partnership, training, counseling and international trade shows or missions. A key component is

the customized, intensive international trade training

designed to help small businesses not only discover

international opportunities appropriate for their companies but also accurately assess the market potential

of various countries. The ultimate goal is for U.S.

small businesses to participate in trade events in the

country or countries with the greatest market potential for the businesses’ exports. Contact your local U.S.

Export Assistance Center to participate in the E-TAP

Program (see also USEACs, p. 27).

Trade Mission Online (TM Online)

TM Online is a database of American small businesses

that seek to export their products. It is also a search

engine for foreign companies seeking U.S. business

alliances through direct product purchases, or

licensing or franchising agreements. Visit TM Online

at www.sba.gov/tmonline.

Assistance for Native Americans

For more information you may access the SBA’s

Office of Native American Affairs Web site at

www.sba.gov/naa.

Assistance for Small &

Disadvantaged Businesses

Small Disadvantaged

Business (SDB) Certification

SDB certification ensures that small businesses owned

and controlled by socially and economically disadvantaged individuals meet SDB eligibility criteria. If

you own a business certified as an SDB, you may

receive a price evaluation credit of up to 10 percent

when you bid on a federal contract. To obtain an application for certification, contact your local SBA district

office, or you can access the application on the Web at

www.sba.gov/sdb/indexsdbapply.html.
Programs & Services • 29

8(a) Business Development

The SBA’s 8(a) Business Development Program assists

the development of small companies owned and operated by individuals who are socially and economically

disadvantaged. If you are eligible for this program, you

are eligible for federal contracting set-asides and other

business-development support to help your company

gain access to the economic mainstream. Contact your

local SBA district office to apply.

7(j) Management

& Technical Assistance

Under Section 7(j) of the Small Business Act, the SBA

awards grants to and enters into cooperative agreements with organizations to provide management

and/or technical assistance to 8(a) Business

Development Program participants and other

eligible individuals, small disadvantaged businesses,

low-income individuals, businesses from areas with

high unemployment and low-income individuals.

The assistance is given in areas such as accounting,

marketing and proposal/bid preparation. The 7(j)

program also provides industry-specific technical assistance and entrepreneurial training. You may obtain

additional information on both the 8(a) and 7(j) programs at www.sba.gov/8abd.

Assistance for Women 

Women’s Business Centers

Women’s business centers nationwide provide women

entrepreneurs with business training and counseling,

technical assistance, mentoring, and access to the SBA’s

programs and services. They also have programs to

assist economically and socially disadvantaged women,

especially those on welfare. Each center tailors its services to the needs of the local community. To find the

WBC nearest you, contact your local SBA district

office, or visit www.sba.gov/womeninbusiness.

Online Women’s Business Center

This Web site offers women information about business principles and practices, management techniques,

networking, industry news, market research, technology training, and information about the many SBA services and resources available to them. Special features
30 • U.S. Small Business Administration

include interactive mentoring and individual counseling; message boards and a calendar of events.

Information is in English, Spanish, Russian and several other languages. You can access the Online

Women’s Business Center at www.onlinewbc.gov.

Women’s Network for Entrepreneurial

Training (WNET)

The Women’s Network for Entrepreneurial Training

provides mentoring for current and aspiring women

business owners through WNET “roundtables.”

Groups of mentors and protégées meet regularly to

provide assistance, support and networking opportunities. Sponsors include women’s business centers,

small business development centers, local business

leaders, government representatives and SCORE.

There are now more than 160 WNET roundtables

nationwide.

Business Information Services

Answer Desk

A computerized, toll-free, telephone message system,

the SBA Answer Desk provides information about

starting or running a business and how to get assistance. You can access the Answer Desk toll-free 24

hours a day, seven days a week at 1-800 U ASK SBA.

Operators are available to answer your questions

Monday through Friday from 9 a.m. to 5 p.m. Eastern

time. You can also e-mail your questions to

answerdesk@sba.gov.

Publications

The SBA produces free publications describing the

SBA’s many programs and services. For copies, call

your local SBA field office or the SBA Answer Desk.

The Web site for downloadable SBA publications is

www.sba.gov/library.

The SBA Home Page

Be sure to check out our home page at www.sba.gov.

It offers detailed information on all SBA programs and

services, including local resources; other business services; access to SBA OnLine, PRO-Net® and the U.S.

Business Advisor (see next listing); and SBA Classroom,
Programs & Services • 31

an online vehicle for reading articles, taking courses

and researching small business issues. The SBA home

page also links to many outside resources on the

Internet. 

U.S. Business Advisor

This Web site provides a one-stop shopping link for

small businesses to information and services provided

by the federal government. It supplies easy online

access to many frequently asked questions about businesses and the federal government. It also

provides interactive tools that can be used to find solutions to situations involving the environment, health

and safety, and permits you to download many of the

forms necessary for regulatory compliance.

The U.S. Business Advisor can also be used to —

• access electronic commerce services, ranging

from loan information to trademark registration,

export licenses, payroll benefits and tax filing;

• employ Web-based tutorials and online classroom training to find other sources of counseling, education and training;

• interact with buyers and suppliers of equity capital, contracting opportunities, trade leads, and

innovation and research grants;

• create a tailored Web page to support international trade activities; 

• access laws, regulations and guidance; and

• seek and receive e-mail advice and counseling.

You may access the U.S. Business Advisor at

www.business.gov or through the SBA’s home page.

www.BusinessLaw.gov

This Web site — www.BusinessLaw.gov — provides

information on legal and regulatory issues for your

small business. Through the site, you have access

to critical information on topics from advertising

to zoning. You can educate yourself on state and local

laws, including laws on hiring and managing employees. You can also apply for licenses or permits, e-file

tax returns, and confer with other business owners. 
32 • U.S. Small Business Administration

Advocacy for Small Business

Office of Advocacy

The SBA’s Office of Advocacy serves as a direct link to

the small business community and as an advocate of

small businesses. It researches pertinent issues, develops policy and legislation, and monitors their effects.

The Office of Advocacy produces numerous publications, including an annual report to Congress, The

State of Small Business: A Report to the President, as well

as technical books, and statistical and economic

reports. It compiles and interprets statistics on small

business and is the primary entity within the federal

government that disseminates small business data.

The office also oversees compliance with the

Regulatory Flexibility Act, is a member of the

Occupational Safety and Health Administration’s

and the Environmental Protection Agency’s Small

Business Advocacy Review panels, and strives to

reduce the impact of regulatory proposals on small

businesses. Access the Office of Advocacy’s home page

at www.sba.gov/advo.

Small Business & Agriculture Regulatory

Enforcement Ombudsman

Congress established the Office of the National

Ombudsman and 10 regulatory fairness boards in

1996 as part of the Small Business and Agriculture

Regulatory Enforcement Fairness Act. That act was

designed to ensure that businesses, small government

entities and small nonprofit organizations that experience unfair regulatory enforcement actions by federal

agencies have a means to register their comments

about such actions. The SBA’s National Ombudsman

seeks to substantiate such comments. Each year the

National Ombudsman files a report with Congress on

how federal agencies have treated small entities in the

process of implementing their regulatory enforcement

actions. Public comments are crucial components of

these reports. For more information on upcoming

hearings, on how to file a comment concerning regulatory enforcement fairness, or on how to locate a

regional regulatory fairness board in your area, you

may visit www.sba.gov/ombudsman, call toll-free at

1-888-REG-FAIR, or e-mail ombudsman@sba.gov.
Programs & Services • 33

Disaster Assistance

Disaster Assistance Loan

When a declared disaster strikes, help is close at hand.

The SBA’s Disaster Assistance Loan Program — the

primary federal program for funding long-range

recovery for private-sector, nonagricultural disaster

victims — provides assistance to businesses of all sizes

and to individuals. Interest rates fluctuate according to

statutory formulas. A low interest rate (not to exceed

4 percent) is available to applicants without credit

available elsewhere. A higher rate (not to exceed 8 percent) is available for those with credit available elsewhere.

The address for the Disaster Assistance home page is

www.sba.gov/disaster.

Loans for Homes and Personal Property

Real Property Loans

This is the major long-term recovery program for

individual disaster losses. Loans are available to

qualified homeowners for uninsured losses up to

$200,000 to repair or restore their primary residences

to pre-disaster condition.

Personal Property Loans

Loans are available to qualified homeowner and

renter applicants for uninsured losses up to $40,000 to

repair or replace personal property such as

clothing, furniture, cars and so forth. Loans are not

intended to replace extraordinarily expensive or

irreplaceable items such as antiques, pleasure craft,

recreational vehicles, fur coats, etc.

Loans for Businesses

Physical Disaster Business Loans

Loans are available to qualified applicant businesses of

any size for uninsured losses up to $1.5 million to

repair or replace business property to pre-disaster

conditions. Loans may be used to replace or repair

real estate, equipment, fixtures and inventory, and

leasehold improvements.
34 • U.S. Small Business Administration

Pre-disaster Mitigation Loans

Loans up to $50,000 are available for eligible small

businesses without credit elsewhere to fund specific

projects to prevent disaster damage. The businesses

must be located in participating pre-disaster

mitigation community locations as designated by

the Federal Emergency Management Agency.

Economic Injury Disaster Loans (EIDLs)

Loans of up to $1.5 million are available for small

businesses that sustain economic injury as a direct

result of a disaster. These working-capital loans

are made to businesses without credit available

elsewhere. The loans are to help pay ordinary and

necessary operating expenses that would have been

payable absent the disaster.

Note: When an EIDL and a Physical Disaster Business

Loan are combined, the maximum loan amount is

$1.5 million, unless the business is a major source of employment as defined by federal criteria. That means the $1.5

million limit can be waived for businesses that employ 250

or more people in an affected area.

Military Reservist Economic Injury

Disaster Loans (MREIDLs)

Loans of up to $1.5 million are available for small

businesses that sustain economic injury because an

essential employee has been called to active duty as a

military reservist. These working-capital loans are

made to businesses without credit available elsewhere.

The loans are to sustain a small business until operations return to normal following the release of the

essential employee from active military duty.
Programs & Services • 35

For More Information

• SBA offices are located in all 50 states, the

District of Columbia, Puerto Rico, the U.S.

Virgin Islands and Guam. For the office

nearest you, look under “U.S. Government”

in your telephone directory, or contact:

• Home page: www.sba.gov

• Phone: 1-800-U ASK SBA

• TDD: 704-344-6640

• Fax: 202-481-6190

• E-mail: answerdesk@sba.gov

SBA Resource Partners

Inquire at your local SBA office for the location

nearest you.

• Business Information Centers (BICs)

• Service Corps of Retired Executives (SCORE)

• Small Business Development Centers (SBDCs)

• U.S. Export Assistance Centers (USEACs)

• Veterans Business Outreach Centers (VBOCs)

• Women’s Business Centers (WBCs)
36 • U.S. Small Business Administration

Loan

Interest

Rate 1 yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs

6.00% 86.07 44.32 30.42 23.49 19.33 16.57

6.25% 86.18 44.43 30.54 23.60 19.45 16.69

6.50% 86.30 44.55 30.65 23.72 19.56 16.81

6.75% 86.41 44.66 30.76 23.82 19.68 16.93

7.00% 86.53 44.77 30.88 23.95 19.80 17.05

7.25% 86.64 44.89 30.99 24.06 19.92 17.17

7.50% 86.76 45.00 31.11 24.18 20.04 17.29

7.75% 86.87 45.11 31.22 24.97 20.16 17.41

8.00% 86.99 45.23 31.34 24.41 20.28 17.53

8.25% 87.10 45.34 31.45 24.53 20.40 17.66

8.50% 87.22 45.46 31.57 24.65 20.52 17.78

8.75% 87.34 45.57 31.68 24.77 20.64 17.90

9.00% 87.45 45.68 31.80 24.88 20.76 18.03

9.25% 87.57 45.80 31.92 25.00 20.88 18.15

9.50% 87.68 45.91 32.03 25.12 21.00 18.27

9.75% 87.80 46.03 32.15 25.24 21.12 18.40

10.00% 87.92 46.15 32.27 25.36 21.25 18.53

10.25% 88.03 46.26 32.38 25.48 21.37 18.65

10.50% 88.15 46.38 32.50 25.60 21.49 18.78

10.75% 88.27 46.49 32.62 25.72 21.62 18.91

11.00% 88.38 46.61 32.74 25.85 21.74 19.03

11.25% 88.50 46.72 32.86 25.97 21.87 19.16

11.50% 88.62 46.84 32.98 26.09 21.99 19.29

11.75% 88.73 46.96 33.10 26.21 22.12 19.42

12.00% 88.85 47.07 33.21 26.33 22.24 19.55

12.25% 88.97 47.19 33.33 26.46 22.37 19.68

12.50% 89.08 47.31 33.45 26.58 22.50 19.81

12.75% 89.20 47.4233.57 26.70 22.63 19.94

13.00% 89.32 47.54 33.69 26.83 22.75 20.07

13.25% 89.43 47.66 33.81 26.95 22.88 20.21

13.50% 89.55 47.78 33.94 27.08 23.01 20.34

13.75% 89.67 47.90 34.06 27.20 23.14 20.47

14.00% 89.79 48.01 34.18 27.33 23.27 20.61

14.25% 89.90 48.13 34.30 27.45 23.40 20.74

14.50% 90.02 48.25 34.42 27.58 23.53 20.87

14.75% 90.14 48.37 34.54 27.70 23.66 21.01

15.00% 90.26 48.49 34.67 27.83 23.79 21.14

15.25% 90.38 48.61 34.79 27.96 23.92 21.28

15.50% 90.49 48.72 34.91 28.08 24.05 21.42

15.75% 90.61 48.84 35.03 28.21 24.19 21.55

16.00% 90.73 48.96 35.16 28.34 24.32 21.69

Loan Repayment Chart

The chart below provides the amortization factor necessary to determine the monthly principal and interest

payment on your loan. The factor is based on loan

increments of $1,000. To obtain the factor, take the

following steps:

1. Divide the total (gross) loan amount by $1,000.
Programs & Services • 37

Term

7 yrs 8 yrs 9 yrs 10 yrs 15 yrs 20 yrs 25 yrs

14.61 13.14 12.01 11.10 8.44 7.16 6.44

14.73 13.26 12.13 11.23 8.57 7.31 6.60

14.85 13.39 12.26 11.36 8.71 7.46 6.75

14.97 13.51 12.38 11.48 8.85 7.60 6.91

15.09 13.63 12.51 11.61 8.99 7.75 7.07

15.22 13.76 12.63 11.74 9.13 7.90 7.23

15.34 13.88 12.76 11.87 9.27 8.06 7.39

15.46 14.01 12.89 12.00 9.41 8.21 7.55

15.59 14.14 13.02 12.13 9.56 8.36 7.72

15.71 14.26 13.15 12.27 9.70 8.52 7.88

15.84 14.39 13.28 12.40 9.85 8.68 8.05

15.96 14.52 13.41 12.53 9.99 8.84 8.22

16.09 14.65 13.54 12.67 10.14 9.00 8.39

16.22 14.78 13.68 12.80 10.29 9.16 8.56

16.34 14.91 13.81 12.94 10.44 9.32 8.74

16.47 15.04 13.94 13.08 10.59 9.49 8.91

16.60 15.17 14.08 13.22 10.75 9.65 9.09

16.73 15.31 14.21 13.35 10.90 9.82 9.26

16.86 15.44 14.35 13.49 11.05 9.98 9.44

16.99 15.57 14.49 13.63 11.21 10.15 9.62

17.12 15.71 14.63 13.77 11.37 10.32 9.80

17.25 15.84 14.76 13.92 11.52 10.49 9.98

17.39 15.98 14.90 14.06 11.68 10.66 10.16

17.52 16.12 15.04 14.20 11.84 10.84 10.35

17.65 16.25 15.18 14.35 12.00 11.01 10.53

17.79 16.39 15.33 14.49 12.16 11.19 10.72

17.92 16.53 15.47 14.64 12.33 11.36 10.90

18.06 16.67 15.61 14.78 12.49 11.54 11.09

18.19 16.81 15.75 14.93 12.65 11.72 11.28

18.33 16.95 15.90 15.08 12.82 11.89 11.47

18.46 17.09 16.04 15.23 12.98 12.07 11.66

18.60 17.23 16.19 15.38 13.15 12.25 11.85

18.74 17.37 16.33 15.53 13.32 12.44 12.04

18.88 17.51 16.48 15.68 13.49 12.62 12.23

19.02 17.66 16.63 15.83 13.66 12.80 12.42

19.16 17.80 16.78 15.98 13.83 12.98 12.61

19.30 17.95 16.92 16.13 14.00 13.17 12.81

19.44 18.09 17.07 16.29 14.17 13.35 13.00

19.58 18.24 17.22 16.44 14.34 13.54 13.20

19.72 18.38 17.37 16.60 14.51 13.73 13.39

19.86 18.53 17.53 16.75 14.69 13.91 13.59

2. Using the chart, find the interest rate on your loan

in the far-left vertical column, then move horizontally to the column denoting the term of your loan.

This number is your amortization factor.

Example: A loan at 8 percent interest with a term

of 7 years has a factor of 15.59.

3. Multiply your answer in step 1 by the factor in

step 2. The result is your monthly loan payment.

Make sure you consult with your lender for the actual loan terms.
38 • U.S. Small Business Administration

Notes
Programs & Services • 39
40 • U.S. Small Business Administration

SBA — America’s Small Business

Resource

Did you know that in fiscal 2001

the SBA —

• backed more than $16.5 billion in financing

to America’s small businesses?

• approved more than 50,000 small business

loans totaling almost $12.2 billion?

• invested $4.5 billion in small businesses

through its venture-capital program?

• provided more than 48,000 loans totaling

more than $1 billion to disaster victims for

residential, personal-property and business

loans?

• gave management and technical assistance

to an estimated 1.3 million entrepreneurs

through its grant programs and resource

partners?

• responded to almost a quarter million telephone and e-mail inquiries at the SBA

Answer Desk?

Did you know that America’s

22.4 million small businesses —

• employ more than 51 percent of the private

work force?

• generate more than 51 percent of the

nation’s gross domestic product?

• are the principal source of new jobs?
AK . . . .Anchorage

AL . . . . .Birmingham

AR . . . . .Little Rock

AZ . . . . .Phoenix

CA . . . .Fresno

. . . . . . .Glendale

. . . . . . .Sacramento

. . . . . . .San Diego

. . . . . . .San Francisco

. . . . . . .Santa Ana

CO . . . .Denver

CT . . . .Hartford

DC . . . .Washington, D.C.

DE . . . .Wilmington

FL . . . . .Miami

. . . . . . .Jacksonville

GA . . . .Atlanta

GU . . . .Mongmong

HI . . . . .Honolulu

IA . . . . .Cedar Rapids

. . . . . . .Des Moines

ID . . . . .Boise

IL . . . . .Chicago

. . . . . . .Springfield

IN . . . . .Indianapolis

KS . . . . .Wichita

KY . . . .Louisville

LA . . . . .New Orleans

MA . . . .Boston

. . . . . . .Springfield

MD . . . .Baltimore

ME . . . .Augusta

MI . . . . .Detroit

. . . . . . .Marquette

MN . . . .Minneapolis

MO . . . .Kansas City

. . . . . . .St. Louis

. . . . . . .Springfield

MS . . . .Gulfport

. . . . . . .Jackson

MT . . . .Helena

NC . . . .Charlotte

ND . . . .Fargo

NE . . . .Omaha

NH . . . .Concord

NJ . . . . .Newark

SBA Field Offices

NM . . . .Albuquerque

NV . . . .Las Vegas

NY . . . .Buffalo

. . . . . . .Elmira

. . . . . . .Melville

. . . . . . .New York

. . . . . . .Rochester

. . . . . . .Syracuse

OH . . . .Cincinnati

. . . . . . .Cleveland

. . . . . . .Columbus

OK . . . .Oklahoma City

OR . . . .Portland

PA . . . . .Harrisburg

. . . . . . .Philadelphia

. . . . . . .Pittsburgh

. . . . . . .Wilkes-Barre

PR . . . . .Hato Rey

RI . . . . .Providence

SC . . . . .Columbia

SD . . . . .Sioux Falls

TN . . . .Nashville

TX . . . .Corpus Christi

. . . . . . .El Paso

. . . . . . .Fort Worth

. . . . . . .Harlingen

. . . . . . .Houston

. . . . . . .Lubbock

. . . . . . .San Antonio

UT . . . .Salt Lake City

VA . . . . .Richmond

VI . . . . .St. Croix

VT . . . .Montpelier

WA . . . .Seattle

. . . . . . .Spokane

WI . . . .Madison

. . . . . . .Milwaukee

WV . . . .Charleston

. . . . . . .Clarksburg

WY . . . .Casper

Disaster Area Offices:

CA . . . .Sacramento

GA . . . .Atlanta

NY . . . .Niagara Falls

TX . . . .Fort Worth

In addition to SBA field offices, there are approximately

1,000 small business development center locations and 389

SCORE chapters to help you start and/or strengthen your

business.
U.S. Small Business Administration

409 Third Street, S.W.Washington, DC 20416Official BusinessPenalty for Private Use, $300

SBA no. CO-0002 (07/02)