How government helps small businesses succeed

• SBA offers a type of loans called 7(a) loans, which are pure primary governmental business loan programs. A 7(a) loan may be used for most business purposes including start-up, expansion, equipment purchases, working capital, and inventory or real-estate acquisition. The SBA can guarantee up to $750,000 of a private-sector loan. Interest rates for 7(a) loans are negotiated between the applicant and the lender.
• SBA Low Documentation Loans (SBALowDoc): If you are looking for a small business loan of $150,000 or less, SBALowDoc may be your answer.
• SBA Express encourages lenders to make more small loans to small businesses. Lenders approve loans of up to $150,000. Lenders can also offer revolving lines of credit to borrowers.
• SBA Prequalification Program offers loans to armed forces veterans, minorities, women, exporters, rural small business owners and business owners in certain specialized industries, this program enables the SBA to pre qualify an applicant for a 7(a) loan guaranty before the applicant goes to a bank. The maximum loan amount is $250,000. The application will focus on your character, credit, experience and reliability rather than assets.
• The MicroLoan Program provides short-term loans of up to $35,000. If you need a loan for small-scale financing purposes such as inventory, supplies and working capital, this program may be your answer.
• Caplines are loans that are offered as five types of loans for financing the short-term and cyclical working-capital needs of small businesses: Seasonal, Contract, Builders, Standard Asset-Based, and Small Asset-Based. The SBA can generally guarantee up to $750,000 of a loan.

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