The U.S. Small Business Administration has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. SBA provides assistances primarily through its four programmatic functions: Access to Capital (Business Financing); Entrepreneurial Development (Education, Information, Technical Assistance & Training); Government Contracting (Federal Procurement); Advocacy (Voice for Small Business). (See “Financing” section above for information about SBA programs.)
U.S. Department of Commerce – www.commerce.gov
U.S. Department of Commerce, U.S. Economic Development Administration – www.eda.gov
U.S. Department of Agriculture – www.usda.gov
Financing for fixed assets including real estate and machinery and equipment, for companies with a net worth not to exceed $7 million or whose average profit after tax does not exceed $2.5 million for the past two years. SBA loans (debentures) can comprise up to 40% of the total financing and may participate up to $5.5 million for a manufacturing company. SBA loans can comprise 40% of the total financing, up to $5 million for women, minority or veteran owned businesses, and up to $5 million for companies that fall into other categories. The bank provides financing for 50% of the total loan, and the company provides 10% equity. The term of the SBA portion of the loan is 10 years on machinery and equipment or 20 years on real estate and is subordinated to the bank loan. The interest rate of the SBA portion of the loan is set at the prevailing SBA rate at the time of closing. Loans are packaged by Certified Development Companies licensed by the US SBA.
7 (a) Loans
SBA loan guarantee for companies purchasing real estate, machinery and equipment, inventory and working capital. The SBA can provide a 90% guarantee on loans up to $150,000 and 75% on loans over $150,000. The maximum loan guarantee for working capital is $1 million and for fixed asset loans up to $1.5 million. Loan terms are up to 10 years for working capital, and up to 25 years for fixed assets.
This program provides a loan guarantee up to 50% for companies purchasing real estate, machinery and equipment, inventory, refinance old debt, and working capital. Loans may also be used as a term loan or as a revolving line of credit. The maximum loan amount is $350,000 with terms of 5-10 years on working capital, 25 years on fixed assets, not to exceed the life of the asset, and no more than 7 years on a revolving line of credit. On loans of $50,000 and under a maximum interest rate of 6.5% over prime applies and on loans over $50,000 a maximum interest rate of 4.5% over prime applies.
The program is currently scheduled to end on September 30, 2012. This visa provides a method of obtaining a green card for foreign nationals who invest money in the United States. To obtain the visa, individuals must invest $1,000,000 (or at least $500,000 in a “Targeted Employment Area” - high unemployment or rural area), creating or preserving at least 10 jobs for U.S. workers excluding the investor and their immediate family. Investments can be made directly in a job-generating commercial enterprise (new, or existing – “Troubled Business”), or into a “Regional Center” - a 3rd party-managed investment vehicle (private or public), which assumes the responsibility of creating the requisite jobs. Regional Centers may charge an administration fee for managing the investor’s investment.
Contact Mr. Paul Levinshoh, New Jersey Regional Center LLC, 299 Broadway, Suite 1220, New York, NY 10007, (212) 577-1270, firstname.lastname@example.org.
The RBDG is a competitive grant designed to support targeted technical, assistance, training and other activities leading to the development or expansion of small and emerging private businesses in rural areas that have fewer than 50 employees and less than $1 million in gross revenues. Programmatic activities are separated into enterprise or opportunity type grants. There is no required maximum level of grant funding. However, smaller projects are given higher priority. Generally grants range $10,000 up to $500,000. To apply for RBDG funding, contact Joseph Henry at 856-787-7754 or at email@example.com.
The Business and Industry (B&I) Guarantee Loan Program provides financial backing for rural businesses. This program guarantees up to 80 percent of a loan made by a commercial lender. Loan proceeds may be used for working capital, machinery and equipment, buildings and real estate, and certain types of debt refinancing. B&I loan guarantees can be extended to loans made by commercial or other authorized lenders in rural areas (this includes all areas other than cities of more than 50,000 people and their immediately adjacent urban or urbanizing areas). Generally, authorized lenders include Federal or State chartered banks, credit unions, insurance companies, savings and loan associations, Farm Credit Banks or other Farm Credit System institutions with direct lending authority, a mortgage company that is part of a bank holding company, and the National Rural Utilities Finance Corporation. Other loan sources include eligible Rural Utilities Programs electric and telecommunications borrowers and other lenders approved by USDA who have met the designated criteria. Assistance under the B&I Guaranteed Loan Program is available to virtually any legally organized entity, including a cooperative, corporation, partnership, trust or other profit or nonprofit entity, Indian tribe or federally recognized tribal group, municipality, county, or other political subdivision of a State. Applicants need not have been denied credit elsewhere to apply for this program.
The maximum aggregate B&I Guaranteed Loan(s) amount that can be offered to any one borrower under this program is $25 million. For more information about B&I Guarantee Loans, contact Joseph Henry at 856-787-7754 or at firstname.lastname@example.org.
This grant program helps agricultural producers enter into value-added activities related to the processing and/or marketing of bio-based, value-added products. Generating new products, creating and expanding marketing opportunities, and increasing producer income are the goals of this program.
Independent producers, agricultural producer groups, farmer- or rancher-cooperatives, majority-controlled producer-based business ventures are eligible to apply for this program.
This program bolsters the availability of private credit by guaranteeing loans for rural business. Lenders with legal authority, sufficient experience and financial strength to operate a successful lending program may apply for this program. This includes: Federal or state-chartered banks, savings and loans, farm credit banks and credit unions. Business that quality for loan guarantees include: for-profit business, nonprofits, cooperatives, federally-recognized tribes, public bodies and individuals that fall with an eligible area.
Additional information regarding the USDA’s programs can be found on their website: www.rd.usda.gov
An eligibility map can be found here: