SBA loan maximum amounts for each type
The Small Business Administration (SBA) helps bridge the gap between small business owners and lenders. SBA loans may be difficult to qualify for, but they offer some of the best deals in the market. The interest rates can go as low as 10% and the repayment terms up to 25 years. With the six primary types of SBA loan programs, there’s almost something for every situation. If you’re interested in finding out the maximum loan amount for each type of SBA loan, read on for more information:
What is the maximum loan amount for each SBA Loan?
SBA 7(a) is the most popular among the SBA loans available. This one is for small businesses that need a working capital for a maximum loan amount of $5 million. It’s the type of loan that’s primarily intended to be used as working capital, real estate or equipment and to refinance debt. SBA Express Loan and SBA Advantage Loan are two popular loans under this SBA loan type. Know more about this type of loan with by reading our article on SBA 7(a) loan.
CDC/SBA 504 loans are for small business owners who need funds in purchasing an owner-occupied commercial real estate. This type of loan program is for those who need a maximum loan amount of $14-20 million. The repayment terms of this loan type are up to 10-20 years. Its interest rates is as low as 5.04 – 5.32%. You can avail this loan can also be used for construction and renovation of real estate. It can also be used to purchase other fixed assets.
SBA CAPLines Loan Program
SBA CAPLines Loan Program is for companies that need a line of credit that can be used again. This program has up to four SBA loan or line of credit products. These are designed to fund small businesses that need a maximum loan amount of $5 million. If you think you need a revolving line of credit to prepare for unexpected expenses or to make recurring payments, this loan might be the best for you. To qualify for this loan program, the same requirements for 7(a) loan are needed. Also, your small business must generate accounts receivable and/or have inventory.
SBA Export Working Capital Program (EWCP)
EWCP is one of the types of SBA 7(a) loan programs intended for businesses that are generating sales through exports. The maximum loan amount of this SBA program is $5 million. If you think you need this, know that the maturity of export working capital is usually 12 months or less.
SBA Microloan Program
This type of SBA loan is for small businesses that need a smaller amount of working capital. It’s a program that offers up to a maximum loan amount of $50,000. SBA Microloan program provides funding to non-profit intermediary lenders that in turn lend funding under $50,000 to nonprofit child centers and for-profit small businesses.
SBA Disaster Loans
SBA Disaster loans are for companies that have been impacted by a declared natural disaster. Funding from this loan type can be used for recovery from declared economic or physical disaster.
Now that you know the SBA loan maximum amount for each type, it’s better to see if you’re eligible for which of them. It’s essential to find out if you’re qualified to any of them since these loans can be hard to qualify for. Lots of paperwork are on the way, but sure they’ll be worth it once you got the funding you need for your small business.