Guarantees from an SBA (7a) Loan

SBA Loan Guarentee from The Startup Garage
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The 7(a) Loan Program is SBA’s primary program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels. SBA itself does not make loans, but rather guarantees a portion of loans made and administered by commercial lending institutions. 7a loans are designed to help business with special requirements.

Types of 7a Loans

  • Express Programs: SBA’s Express programs offer streamlined and expedited loan procedures for particular groups of borrowers.  The express programs are made up of the SBA Express, the Patriot Express, and the Export Express Loan Programs (listed as part of the Export Loan Programs).
  • Export Loan Programs: SBA has placed a priority on helping small business exporters—some 70 percent of all U.S. exporters have 20 or fewer employees—with a number of loan programs specifically designed to help them develop or expand their export activities.  These loan programs include the Export Working Capital Loan, the Export Express Loan, and the International Trade Loan
  • Advantage and Rural Loan Programs: The Small/Rural Lender Advantage (S/RLA) initiative is designed to accommodate the unique loan processing needs of small community/rural-based lenders by simplifying and streamlining loan application process and procedures. These include the Small Loan Advantage, Community Advantage loans, Rural Lender Advantage, and the B&I Guaranteed Loan.
  • Special Purpose Loan ProgramsSpecialty purpose Loans are designed to assist those businesses affected by NAFTA, developing Employee Stock Ownership Plans, and implementing pollution control measures. The Specialty purpose loans include the CAIP loan for borrowing costs and the CAPlines for seasonal funding needs as well as Pollution Control and Employee Trusts Loans.

What Banks Are Looking For

To be considered for a 7(a) loan, applicants must meet certain eligibility requirements. These requirements are designed to be as broad as possible so the program can accommodate the most diverse variety of small business financing needs.  First, your startup must operate as a for profit company and do business in the United States or its possessions. Your entrepreneurial venture must also meet SBA size standards and not have any funds available from other sources. You, the entrepreneur, must have what the SBA determines as “good character”, management expertise, and the ability to pay the loan on time. A strong business plan is typically required as well.

Whether you have a question about Guarantees from an SBA 7a loan, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.