7(a) Loan Guarantees
Guaranteed loans are made available to for profit small businesses.
The SBA's
The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.
Program Accomplishments
In FY 2007, 99,607 loans were approved for $14.3 billion.
Uses and Use Restrictions
To construct, expand, or convert facilities; to purchase building equipment or materials; and for working capital.
Excludes gambling establishments, nonprofit enterprises, speculators in property, lending or investment enterprises, and financing of real property held for investment; also excludes funds to indiscriminately relocate the business.
Funds must not otherwise be available on reasonable terms, nor used to pay off a loan to an unsecured creditor who is in a position to sustain loss.
Eligibility Requirements
Applicant Eligibility
Not applicable.
Beneficiary Eligibility
Small businesses that meet the size and eligibility standards.
Credentials/Documentation
Not applicable.
Aplication and Award Process
Preapplication Coordination
None.
This program is excluded from coverage under E.O.
12372.
Application Procedures
Applications are filed by the participating lender to an SBA processing center (85 percent). Fifthteen percent are processed by an SBA district office.
Award Procedures
Applicant is notified by authorization letter from the District SBA Office, or participating bank.
Deadlines
None.
Authorization
Small Business Act of 1953, Section 7(a), as amended, Public Law 97-35.
Range of Approval/Disapproval Time
From one to ten days from date of application acceptance, depending on type of loan and type of lender program.
Appeals
If a reconsideration is requested within six months after decline or withdrawal, no new application is required.
Renewals
Not applicable.
Assistance Considerations
Formula and Matching Requirements
Not applicable.
Length and Time Phasing of Assistance
Not applicable.
Post Assistance Requirements
Reports
Periodic financial statement.
Audits
When necessary, on a case-by-case basis.
Records
Adequate accounting system.
Financial Information
Account Identification
73-1154-0-1-376.
Obigations
Loan Guarantees: FY 07 $13,517,000,000; FY 08 $17,500,000,000; FY 09 $17,500,000,000. Administration: FY 07 $41,822,000; FY 08 $43,942,000; and FY 09 $48,027,000.
Range and Average of Financial Assistance
Guarantee Loans: Up to $2,000,000. Average loan size was $143,492 in FY 2007.
Regulations, Guidelines, and Literature
"SBA Business Loans from the SBA," OPC-6.
Information Contacts
Regional or Local Office
Initial contact should be with the District Offices listed in Appendix IV of the Catalog.
Headquarters Office
Director, Office of Financial Assistance, Small Business Administration, 409 Third Street, SW., Washington, DC 20416. Telephone: (202) 205-7562.
Criteria for Selecting Proposals
Not applicable.
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