Small Business Administration (SBA)
Created on on July 30, 1953, the Small Business Administration (SBA) delivers millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. It provides assistance through different programs: Loan Guaranty Program to $1,000,000, Express Loans to $150,000, 504 Certified Development Company Program, International Trade Loans to $1,250,000, SBIC Program for funding of long-term capital, Microloan Program to $50,000, or Disaster Loan Program. Find more details below:
Loan Guarantee Program
The 7(a) Loan Guaranty Program is one of SBA’s primary lending programs. It provides loans to small businesses unable to secure financing on reasonable terms through normal lending channels. The program operates through private-sector lenders that provide loans, which are, in turn, guaranteed by the SBA — the Agency has no funds for direct lending or grants. Contact (617) 565-5590.
Express Loans
This replaced the former known LowDoc Loan Program which expedited the procedures to obtaining SBA guarantees on commercial loans under $150,000. The maximum amount that can be obtained from an express loan is $350,000, higher than the previous program with lower interest rates than regular 7a loans. The application requires minimal paperwork and has a turnaround time of 36 hours. Contact (617) 565-5590.
504 Loan Program
The 504 Certified Development Company (CDC) Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. A Certified Development Company is a nonprofit corporation set up to contribute to the economic development of its community. Typically, a 504 project includes a loan secured with a senior lien from a private-sector lender covering up to 50 percent of the project cost, a loan secured with a junior lien from the CDC (backed by a 100 percent SBA-guaranteed debenture) covering up to 40 percent of the cost, and a contribution of at least 10 percent equity from the small business being helped. The maximum SBA debenture is $1,000,000. Contact (617) 565-5590.
International Trade loans
The SBA can guarantee up to $1,250, 000 for a combination of fixed-asset (facilities and equipment) financing and Export Working Capital Program (EWCP) assistance. The fixed-asset portion of the loan guaranty cannot exceed one million ($1,000,000.00) dollars and the non-fixed asset portion cannot exceed seven hundred fifty thousand ($750,000.00) dollars. Contact (617) 565-5590.
HUBZone Contracting Program
This program provides federal contracting and commercial subcontracting preferences for companies located in the City of Boston designated HUBZone (See map 2). To participate, a company must also have 35% of its employees residing within a HUBZone. Program benefits include sole-source contract (non-competitive), competitive bid contracts, and a price evaluation preference for full and open competition. Also, commercial businesses working on federal contracts subcontract to HUBZone firms. Contact (617) 565-5590.
Service Corp of Retired Executives (SCORE)
A voluntary organization comprised of retired business owners and executives who provide technical assistance for new and expanding businesses. Business owners can be paired with a SCORE representative who has expertise in that specific industry. Contact (617) 565-5590.
SBIC Program
This was program was created in 1958 by congress to assist in the funding of long-term capital to America’s small businesses. Although they do not directly provide the capital, the SBA partners with private investors to utilize professionally-managed investment fund known as SBICs to finance small businesses. Contact (617) 565-5590.
Microloan Program
This program provides small businesses with small short-term loans for working capital or the purchase of inventory, supplies, furniture, fixtures, machinery and/or equipment. The capital is provided through intermediary lenders, which consists of nonprofit organizations with experience in lending and technical assistance, in amounts of up to $50,000 with the average loan amounting to $13,000. Applications submitted and credit decisions are conducted on the local level through local intermediaries. Contact (617) 565-5590.
Disaster Loan Program
This program is available to victims of a disaster that may rent or own a home, own a business or even own a small agricultural cooperative located in a disaster area that may be eligible for financial assistance from the SBA. Contact (617) 565-5590.