59.012 7(A) LOAN GUARANTEES |
(Regular Business Loans 7(a) Loans) |
FEDERAL AGENCY |
SMALL BUSINESS ADMINISTRATION |
AUTHORIZATION |
Small Business Act of 1953, Section 7(a), as amended, Public Law 97-35. |
OBJECTIVES |
To provide guaranteed loans from lenders to small businesses which are unable to obtain financing in the private credit marketplace, but can demonstrate an ability to repay loans if granted, in a timely manner. Guaranteed loans are made available to for profit small businesses. The SBA's 7(a) lending authority includes: (1) regular 7(a) (2) the Low Documentation Loan Program (Low Doc); (3) SBAExpress Program; (4) the Cap Line Program (5) PLP and (6) International Trade. |
TYPES OF ASSISTANCE |
Guaranteed/Insured Loans (including Immediate Participation Loans). |
USES AND USE RESTRICTIONS |
To construct, expand, or convert facilities; to purchase building equipment or materials; and for working capital. Excludes gambling establishments, nonprofit enterprises, speculators in property, lending or investment enterprises, and financing of real property held for investment; also excludes funds to indiscriminately relocate the business. Funds must not otherwise be available on reasonable terms, nor used to pay off a loan to an unsecured creditor who is in a position to sustain loss. |
Applicant Eligibility |
Not applicable. |
Beneficiary Eligibility |
Small businesses that meet the size and eligibility standards. |
Credentials/Documentation |
Not applicable. |
Preapplication Coordination |
None. This program is excluded from coverage under E.O. 12372. |
Application Procedure |
Applications are filed by the participating lender to an SBA processing center (85 percent). Fifthteen percent are processed by an SBA district office. |
Award Procedure |
Applicant is notified by authorization letter from the District SBA Office, or participating bank. |
Deadlines |
None. |
Range of Approval/Disapproval Time |
From one to ten days from date of application acceptance, depending on type of loan and type of lender program. |
Appeals |
If a reconsideration is requested within six months after decline or withdrawal, no new application is required. |
Renewals |
Not applicable. |
Formula and Matching Requirements |
Not applicable. |
Length and Time Phasing of Assistance |
Not applicable. |
Reports |
Periodic financial statement. |
Audits |
When necessary, on a case-by-case basis. |
Records |
Adequate accounting system. |
Account Identification |
73-1154-0-1-376. |
Obligations |
Loan Guarantees: FY 07 $13,517,000,000; FY 08 $17,500,000,000; FY 09 $17,500,000,000. Administration: FY 07 $41,822,000; FY 08 $43,942,000; and FY 09 $48,027,000. |
Range and Average of Financial Assistance |
Guarantee Loans: Up to $2,000,000. Average loan size was $143,492 in FY 2007. |
PROGRAM ACCOMPLISHMENTS |
In FY 2007, 99,607 loans were approved for $14.3 billion. |
REGULATIONS, GUIDELINES, AND LITERATURE |
"SBA Business Loans from the SBA," OPC-6. |
Regional or Local Office |
Initial contact should be with the District Offices listed in Appendix IV of the Catalog. |
Headquarters Office |
Director, Office of Financial Assistance, Small Business Administration, 409 Third Street, SW., Washington, DC 20416. Telephone: (202) 205-7562. |
Web Site Address |
http://ww.sba.gov/financing |
RELATED PROGRAMS |
Small Business Development Centers; SCORE counseling services, Womens Business Centers. |
EXAMPLES OF FUNDED PROJECTS |
Not applicable. |
CRITERIA FOR SELECTING PROPOSALS |
Not applicable. |
General Services Administration Office of Chief Acquisition Officer Regulatory and Federal Assistance Division (VIR) |