Business cdc finance small

Since 1992 the Small Business Administration (SBA) has guaranteed more than $83 billion in loans to small-business owners under three programs: the 7(A) General Business Loan Guaranty Program, the Certified Development Company (504) Loan Program and the Microloan Program. The programs generally require that you have equity in the business, fairly good credit, experience in the industry and the ability to repay the loan from cash flow.

* The 7(A) Loan Guaranty Program provides loans to small businesses by guaranteeing major portions of loans by private lenders--as much as 80 percent on loans of up to $100,000 and 75 percent on loans of more than $100,000.

* The Certified Development Company (504) Loan Program provides nonprofit corporations with long-term financing for major fixed assets. To qualify, the nonprofit CDC must run a for-profit business that contributes to the economic development of the community or region.

* The Microloan Program provides small loans to small-business borrowers through SBA funds made available to nonprofit intermediaries. They make loans to borrowers in amounts ranging from under $100 to a maximum of $25,000. Contact the SBA office in your area, or log on to sba.gov.