New York State Coronavirus Resources

U.S. Small Business Administration Website

The SBA is a federal agency that offers two key longer-term financing programs that enable new or expanding small businesses to secure permanent working capital and purchase equipment and/or real estate.

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SBA 7(a) Loan Program:

• Participating lenders receive a guarantee that the SBA will repay up to 85% of the loan if the business borrower defaults on payments

• Loans of up to $5 million and terms of 25 years for real estate, 10 years for equipment, and 7 years for working capital

• Eligible uses: working capital, inventory, machinery, real estate purchases, and refinancing debt

• Guarantee fee ranging from 2% to 3.75%, the cost of which can be included in the loan amount

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SBA 504 Loan Program:

• Borrower requirements of only 10% equity contribution - loans are administered through a partnership between an SBA-approved lender that covers 50% of the project cost and a community development corporation that funds up to 40%

• Loans of up to $5 million and terms of 20 or 25 years

• Eligible uses: fixed asset purchases like real estate or equipment