10 Ways to Get a Loan Through the Small Business Administration : Under30CEO 10 Ways to Get a Loan Through the Small Business Administration : Under30CEO
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10 Ways to Get a Loan Through the Small Business Administration

| October 24, 2011 | 3 Comments

small business loanMany young business owners get caught up chasing after venture or angel capital to fund their business and forget about looking into a loan for it. There are many different programs out there through your bank, local government and national government that you can look into for a loan. One great resource is the Small Business Administration which has numerous resources available for small business owners. Below we have put together 10 national programs they have where you can get a small business loan. Each program has specific guidelines for what type of businesses can apply so be sure to go through each one and see where your business might fit in.

These loans are specifically to start a business in the US. They are all generally small (under $250,000).

Basic 7(a) Loan Program
For starting, acquiring and expanding a small business, 7(a) loans are the most basic and most used type loan of SBA’s business loan programs. Borrowers must apply through a participating lender institution.

CAPLines
CAPLines is the umbrella program under which the SBA helps small businesses meet their short-term and cyclical working-capital needs.

Community Adjustment and Investment Program (CAIP)
The Community Adjustment and Investment Program (CAIP) was established to assist U.S. companies doing business in areas of the country that have been negatively affected by the North American Free Trade Agreement (NAFTA). CAIP loans allow for the payment of fees on eligible loans, including the 7(a) Loan Program guaranty fee and the 504 program guaranty and CDC and lender fees. Depending on the size of the loan, these fees can be sizeable. CAIP works with SBA to reduce borrower costs and increase the availability of these programs.

Community Advantage
Small business owenrs and entrepreneurs don’t always need large loans. The Community Advantage and Small Loan Advantage programs help business owners get crucial small loans (under $250,000) with a streamlined application, minimal paperwork, and fast turnaround times, while still offering SBA’s highest guarantee. These funds are available to financial institutions for the purpose of extending credit to small businesses.

Community Express
Community Express is an SBA pilot, 7(a) loan program for small businesses in low and moderate income areas. Lenders are not required to take collateral for loans up to $25,000. Lenders may use their existing collateral policy for loans over $25,000 up to $250,000. To learn more, contact your local district office.

Microloan Program
Provides very small loans to start-up, newly established, or growing small business concerns. SBA makes funds available to nonprofit community based lenders which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. Applications are submitted to the local intermediary and all credit decisions are made on the local level.

Military Reservists Economic Injury Loans
The Military Reservist Economic Injury Disaster Loan program (MREIDL) provides funds to help an eligible small business meet ordinary and necessary operating expenses that it could have met, but is unable to meet, because an essential employee was called-up to active duty in their role as a military reservist.

Mission-Focused Lenders
Small business owenrs and entrepreneurs don’t always need large loans. The Advantage programs help business owners get crucial small loans (under $250,000) with a streamlined application, minimal paperwork, and fast turnaround times, while still offering SBA’s highest guarantee. These funds are available to financial institutions for the purpose of extending credit to small businesses.

SBA Preferred Lender Program
Small business oweners and entrepreneurs don’t always need large loans. The Advantage programs help business owners get crucial small loans (under $250,000) with a streamlined application, minimal paperwork, and fast turnaround times, while still offering SBA’s highest guarantee. These funds are available to financial institutions for the purpose of extending credit to small businesses.

Small Loan Advantage
Small business owners and entrepreneurs don?t always need large loans. The Community Advantage and Small Loan Advantage programs help business owners get crucial smaller loans (under $250,000) with a streamlined application, minimal paperwork and fast turnaround times, while still offering SBA?s highest guarantee.

Have you received a loan for your business? What method or program did you go through to get it?

About the Author: Jared O'Toole

Co-founder and editor of Under30Media. You can send an email to Jared(at)Under30CEO.com. Follow him on Google+ or @JaredOToole

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Category: Funding, Startup Advice

  • http://www.i95dev.com Henry Louis

    I think it would be more helpful to get loan through small business administration. Thanks Jared for sharing this post.

  • http://twitter.com/InTheRedBlues Brad Thomsen Jr

    Thanks for posting this article! I’m writing a report in my intro to business class based on this article. 

  • http://mach1webdesign.com/ Small Business Web Design

    Don’t underestimate your local bank. Start working on forming a long term relationship with your bank and get to know one of the bankers. They can be a HUGE help when you are trying to get financing.