What Are the Best SBA Loan Programs in 2023?
The U.S. Small Business Administration (SBA) is not a loan provider. It is a government-guaranteed entity that offers different loan programs.
Most small business owners all find themselves asking the same question at some point or another during their transition to becoming a business owner: Where will I get the money?
Many of them will ask that same question at some point again long after the transition period. The SBA offers many loan programs that can assist with a variety of business needs – from the different types of costs and requirements when opening your business, expanding your business, or simply keeping your business running smoothly.
Check out the chart below where we summarize the different programs.
| # | NAME | DESCRIPTION | LOAN AMOUNT |
|---|---|---|---|
| 1 | GENERAL LOAN PROGRAM |
|
$5,000,000 |
| 2 | Special Purpose Loan Program |
|
Varies by program |
| 3 | Export Loan Program |
|
$500,000 – $5,000,000 depending on loan program |
| 4 | Community Advantage |
|
$250,000 |
| 5 | MICROLOAN PROGRAMS |
|
$50,000 |
| 6 | CDC/504 LOAN PROGRAM |
|
$5,000,000 |
Subcategories & Additional Programs
There are additional programs and subcategories to the classifications above.
Export Express Program: generates a response from the SBA within 24 hours for a credit line up to $500,000 for exporters.
- Export Working Capital loans: for businesses that can generate export sales and need additional working capital to support these sales. These loans are a maximum of up to $5 million.
- International Trade loans: provide long-term financing to businesses that are expanding because of growing export sales or that have been adversely affected by imports and need to modernize to meet foreign competition. Business can used International Trade loans for fixed assets for construction, building, real estate, equipment and for working capital for export transactions. The maximum loan is up to $5 million.
- The Veterans Advantage: SBA loans made to businesses owned by veterans with reduced fees.
- CAPLines is an umbrella program featuring four lines that helps small businesses meet their short-term and cyclical working capital needs.
- Seasonal CAPLine: Borrowers can only use loan proceeds to finance seasonal increases of accounts receivable and inventory – or in some cases associated labor costs; can be revolving or non-revolving
- Contract CAPLine: finances direct labor and material costs associated with performing assignable contracts; can be revolving or non-revolving
- Builders CAPLine: can finance direct labor and material cost for a small general contractor or builder constructing or renovating commercial or residential buildings; can be revolving or non-revolving
- Working CAPLine: asset-based revolving line of credit for businesses unable to meet credit standards associated with long-term credit
What’s the Best SBA Loan?
You should take the time to do your own research and find out which loan program(s) is best for you. Consider the type of business you’re opening, the population you’re serving and so on.
Questions to ask yourself …
- How much do you need to start? Or acquire? Or stay afloat?
- How much is the interest?
- What is the loan term?
All of these are good things to consider before signing off on the dotted line.
Where Will I Get the Money?
Securing SBA funding can be overwhelming. I’m quite sure just reading over the information above might be a little bit dizzying. But I promise you – the money is out there if you are willing to make the effort to find it.
If you would like assistance navigating the complicated SBA loan process, click or tap HERE for a free consultation.
