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| 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) |
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