Small Business Administration Loans (SBA Loans)

Small businesses are now playing a key role in today’s economy. A powerful stimulant for economic growth, small businesses offer people greater opportunities to not only work for themselves, but also make huge profits. According to figures by the Small Business Administration in 2002 there were nearly 23 million small businesses in the US alone. These businesses represented 99% of all employers and employed over 50% of the country’s private workforce. And with 97% of small businesses being US exporters, the importance and significance of a small business has now greatly increased.

If you are a small business owner at the moment, your chances for success are quite high. Small businesses from simple home setups to local firms are doing very well in the current market. Basically, if you employ less than 100 employees then your company qualifies as a small business. The importance of small businesses has even become evident to the federal government, which has come to realize that these companies are now the lifeblood of the economy.

In order to facilitate and help small businesses, the US Government established the Small Business Administration (SBA) in 1953 as an independent government agency that would aid small businesses in the fields of development and growth. Providing assistance in the areas of finance, advocacy, procurement and management, the Small Business Administration has over the past 50 years helped many small businesses all across the country with loans, assistance, counseling and in getting government contracts. By protecting the interests of small businesses, the SBA has supported many companies while paying special attention to businesses owned by women, veterans, minorities and people with special needs.

Getting a loan from the SBA is actually quite simple and straightforward, all one has to do is meet the SBA’s eligibility criteria. Three of the main requirements for a SBA loan are that the business is operated for profit, the business is based in the US and that the size of the company should not exceed the stipulated standard. Real estate businesses, schools, magazine and newspapers are not eligible for SBA loans. Service industry companies should earn less than $14.5 million depending on the industry, while retail based companies annual revenues should exceed $13.5 million, depending on the industry. For whole selling businesses, employees should number less than 100, while for manufacturing businesses 1500 is the maximum number of employees one can hire.

There are a variety of SBA loans available, which primarily fall in these 3 loan programs;

The Basic Section 7(a) Loan Guaranty Program
The MicroLoan Program
The Section 504 Certified Development Company (CDC) Program

You can learn more about these loans by getting in touch with a representative from West Coast Commercial Mortgage, Inc. by visiting our contact us page.