The SBA 7(a) program can be used to achieve short- and long-term financing goals. This program is preferred for the lower cash requirements and longer terms.

The 7(a) program may be used for a wide variety of purposes, such as working capital, equipment purchases, land and building acquisition, construction of a new facility, or debt refinancing or consolidation.

The maximum loan amount is $5 million. Fixed interest rates are available, or a variable rate can be based on The Wall Street Journal Prime Rate.

The SBA 7(a) program offers term loans up to 10 years. If combined with real estate, the term length can be increased up to 25 years.

The goal of the program is to assist a business who can create jobs as a result of financial assistance through the program. The 504 program is available to assist borrowers with financing needs for purchasing real estate, equipment, and buildings.

The 504 programs may be used for a wide variety of purposes including real estate purchases; building purchase, either construction or renovation; long-term machinery and equipment; debit refinancing and consolidation.

Loans available for the 504 program range from $150,000 to $5 million.
Fixed interest rates can be negotiated, or a variable rate option is available. SBA offers a below-market fixed-interest payment option.

The 504 program offers term loans up to 25 years. Equipment loans can be financed up to 10 years.

The SBA Express program is best for smaller businesses seeking a loan or line of credit for up to $350,000 that can utilize flexible collateral options.

The SBA express line of credit is best utilized for long- or short-term working capital, refinancing, smaller construction projects and renovations, for-profit businesses, and machinery, equipment, or furniture purchases.

A line of credit or loan up to $350,000. The credit decision is made quickly, and this program has flexible collateral options. Interest rates are variable and based on The Wall Street Journal Prime Rate.

The SBA Express program has a 5-year revolving line of credit. At the end of the 5 years, the balance becomes a term loan with a 5-year term.

The USDA B&I program is designed to assist in providing loans to rural businesses. The USDA B&I program is geared towards rural areas not in a city or town with a population of more than 50,000. The program was established to create new or save existing jobs for rural U.S. residents.

Business conversion, enlargement, repair, modernization or development; purchase development of land, buildings, and associated infrastructure for commercial or industrial properties; purchase and installation of machinery and equipment, supplies or inventory; debt refinancing when such refinancing improves cash flow and creates jobs; and business and industrial acquisitions when the loan will maintain business operations and create or save jobs.

A business applying for the USDA B&I loan program can borrow a total maximum amount of up to $25 million under certain conditions when scoring guidelines are met and approved by the USDA. Rates for the USDA B&I program may be fixed or variable. Variable interest rates may not be adjusted more often than quarterly.

The length of the term is based on the economical life of the assets being financed and those used as collateral, and the borrower’s repayment ability. The loan term will not exceed 40 years. B&I loans are longer for real estate transactions (up to 30 years) than the typical SBA 7(a) terms of up to 25 years.