The SBA Express Loan program is designed to provide small businesses with quicker access to working capital through a streamlined approval process. Loan amounts can reach up to $500,000, and participating lenders receive an expedited SBA response within 36 hours. These funds can be used for various business purposes such as working capital, inventory, equipment, or real estate. While the SBA guarantees up to 50% of the loan, lenders set their own interest rates (within SBA limits), and repayment terms vary depending on the purpose. Express loans are popular for established businesses needing fast access to funds without the lengthy approval process of traditional SBA loans.

The SBA 504 Loan program is designed to help small businesses finance major fixed assets such as commercial real estate, land, or long-term equipment. It involves a partnership between a Certified Development Company (CDC), a private lender, and the borrower. Typically, the borrower contributes 10% as a down payment, the CDC funds 40% through an SBA-backed debenture, and the private lender covers the remaining 50%. Interest rates are fixed and generally lower than conventional loans, with repayment terms of 10, 20, or 25 years. The 504 program is ideal for businesses seeking to purchase or expand facilities and promote local economic development and job creation.

The SBA 7(a) Loan program is the SBA’s most common and flexible financing option, used for business acquisitions, working capital, debt refinancing, or purchasing real estate and equipment. Loan amounts can reach up to $5 million, with the SBA guaranteeing up to 85% of loans under $150,000 and up to 75% for larger loans. Borrowers typically need to inject 10% to 20% equity when acquiring a business or real estate. Fees include an SBA guarantee fee and standard closing costs. The 7(a) program appeals to both startups and established businesses seeking longer repayment terms and competitive interest rates with government-backed security for lenders.

The USDA Business and Industry (B&I) Loan Program is designed to strengthen rural economies by supporting business development, job creation, and infrastructure investment for communities with less than 50,000 people. The loan is 80% guaranteed by the government. Funds can be used for purchasing real estate, constructing or improving buildings, buying equipment, refinancing debt, or even acquiring an existing business. Loan amounts can reach up to $25 million, with terms typically extending up to 30 years for real estate and 15 years for equipment. The USDA guarantees up to 80% of the loan, helping reduce lender risk while promoting sustainable economic growth in rural communities. These loans are typically used when traditional financing is not an option, and therefore are more expensive than a conventional loan.