Content provided by the Catalog of Federal Domestic Assistance
59.012 Small Business Loans
SMALL BUSINESS ADMINISTRATION
Small Business Act of 1953, Section 7(a), as amended, Public Law 97-35.
To provide guaranteed loans to small businesses which are unable to obtain financing in the private credit marketplace, but can demonstrate an ability to repay loans granted. Guaranteed loans are made available to low-income business owners or businesses located in areas of high unemployment, nonprofit sheltered workshops and other similar organizations which produce goods or services; to small businesses being established, acquired or owned by handicapped individuals; and enable small businesses to manufacture, design, market, install, or service specific energy measures. The SBA's 7(a) lending authority includes: 1) the Low Documentation Loan Program (Low Doc); 2) the Cap Line Program; 3) FA$ TRAK Program, formerly the Small Loan Express; 4) the Women's Prequalification Program; and 5) Minority Prequalification Program.
TYPES OF ASSISTANCE:
USES AND USE RESTRICTIONS:
To construct, expand, or convert facilities; to purchase building equipment or materials; and for working capital. Excludes gambling establishments, nonprofit enterprises, speculators in property, lending or investment enterprises, and financing of real property held for investment; also excludes funds to indiscriminately relocate the business. Funds must not otherwise be available on reasonable terms, nor used to pay off a loan to an unsecured creditor who is in a position to sustain loss.
Applicant Eligibility: A small business is eligible, which is independently owned and operated and not dominant in its field. Generally, SBA size standards for manufacturers range from 500 to 1,500 employees, depending on the industry; for wholesalers up to 500 employees is allowed, retailers and service concerns having revenues of $3,500,000 and in certain cases up to $21,500,000, may be considered small; and depending upon the type of industry, agricultural enterprises have size standards from $500,000 to $3,500,000 in annual receipts.
Pre-application Coordination: None. This program is excluded from coverage under E.O. 12372.
Formula and Matching Requirements: Not applicable.
POST ASSISTANCE REQUIREMENTS:
Reports: Periodic financial statement.
Account Identification: 73-1154-0-1-376.
In fiscal year 2001, 38,974 loans were Guaranteed for $9,000,000,000.
REGULATIONS, GUIDELINES, AND LITERATURE:
"SBA Business Loans from the SBA," OPC-6.
Regional or Local Office:
EXAMPLES OF FUNDED PROJECTS:
CRITERIA FOR SELECTING PROPOSALS:
Low Cost Colleges