If you’re a small business owner you’ve probably heard that the U.S. Small Business Administration sponsors loans for qualified small businesses. You probably have heard that these loans can have great terms that can stand to really help a small business out in their time of need, and maybe even know that there are a few different types of loans sponsored by the SBA. But did you know that even the common “catch-all” SBA 7(a) loan has several different subtypes?
The Eight Different SBA 7(a) Subtypes
- Export Working Capital: The Export Assistance Center offers this great loan option for companies that export. With a whopping 90% of the maximum $5 million guaranteed by the SBA, it’s a pretty low-risk loan for lenders to offer.
- Export Express: This is another loan type specifically for businesses that export. It can get you up to $500,000 but its real advantage is that your application will be reviewed within 24 hours.
- SBA Express: This is a more general version of the Export Express. With it, you can get up to $350,000 and your application will be reviewed within 36 hours.
- Veterans Advantage: If at least 51% of your business is owned by veterans or veteran’s spouses or widows, you’re eligible for this loan type. It’s a bit different than the others in that it’s a perk that you can apply to other SBA loan types which will decrease the associated fees.
- International Trade: Specially designed to help businesses that are trying to increase their competitiveness with foreign importers or those trying to expand their exports, this is similar to the Export Working Capital loan type but offer longer repayment terms of up to 25 years, depending on what the funds will be applied to.
- Standard: The standard SBA 7(a) loan type is sponsored by the SBA up to 85%, which means that most small businesses can qualify for this versatile loan. The maximum value for this variety is $5 million.
- CAPLines: This version is very similar to the standard type, with one key difference. Businesses that are approved receive their funds in the form of a line of credit.
- 7(a) Small Loan: This is a miniature version of the standard loan, with similar terms but a maximum value of $350,000.
All of these versions of the SBA 7(a) loan have a few things in common: they are easier for small businesses to get than a standard bank loan and can help you invest in your business in the way that you want.