Proceeds may be used to purchase real estate and long-life equipment. There are revolving lines of credit to finance accounts receivable and inventory, contracts, seasonal needs, and for building contractors. There are also special loan programs for businesses involved in exporting. Loan maturities range from a few months on some revolving lines of credit up to 25 years for purchase of real estate. Repayment terms are based on the use of the loan proceeds and the ability of the business to repay.
Interest rates vary, depending on the size and term of the loan and the loan program being used.
Businesses must be able to provide a product or service that is purchased by an agency of the federal government. In addition to the number of employer businesses, Alabama also had 128,000 self-employed persons in 1996, for an estimated total of 213,797 businesses. There has also been a marked increase in the number of businesses owned by Asian and Pacific Islanders, American Indians, and Alaskan Natives. The number for this group grew from 1,007 in 1987, to 1,777 in 1992, representing a 76.5 percent increase.