NEED CAPITAL TO GET YOUR COMPANY STARTED?

Does your business require initial capital to move forward with a private placement, start up or expansion costs?

Our resources can assist your business in obtaining low interest loans from $5,000 to $50,000 per application depending upon the program. In addition, the SBA has programs that may assist you in obtaining seed money prior to your offering. These programs include:

Microloans

The Microloan Program provides small, short-term loans to small business concerns and certain types of not-for-profit child-care centers. The SBA makes funds available to specially designated intermediary lenders, which are nonprofit community-based organizations with experience in lending as well as management and technical assistance. These intermediaries make loans to eligible borrowers. The maximum loan amount is $50,000, but the average microloan is about $13,000.

How Microloan Funds May Be Used

Microloans may be used for the following purposes:

• Working capital
• Development of a business plan and private placement memorandum
• The purchase of inventory or supplies
• The purchase of furniture or fixtures
• The purchase of machinery or equipment.

Proceeds from a microloan cannot be used to pay existing debts or to purchase real estate.

SBAExpress

The SBAExpress program gives small business borrowers an accelerated turnaround time for SBA’s review. You will receive a response to your application within 36 hours. In addition, lower interest rates are often available to you when you apply through an Express program.

Community Express
The Community Express loan program allows approved SBA lenders to make eligible loans of $25,000 or less, regardless of where your small business is located.

Patriot Express
The U.S. Small Business Administration has announced the SBA’s Patriot Express Pilot Loan Initiative for veterans and members of the military community wanting to establish or expand small businesses. The SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative, making it more accessible and easy to use.

Eligible military community members include:

• Veterans
• Service-disabled veterans
• Active-duty service members eligible for the military’s Transition Assistance Program
• Reservists and National Guard members
• Current spouses of any of the above
• The widowed spouse of a service member or veteran who died during service or of a service-connected disability

Patriot Express loan proceeds can be used for most business purposes, including:

• Start up costs
• Equipment purchases
• Business-occupied real-estate purchases
• Inventory
• Infusing working capital
• Managing your business
• Expansion
• Preparing your business for the possibility of your deployment
• Setting up to sell goods and services to the government
• Recovery from declared disasters.

Patriot Express loans feature the SBA’s lowest interest rates for business loans, generally 2.25 percent to 4.75 percent over prime depending upon the size and maturity of the loan.

In addition to private seed loan resources, the SBA offers the following programs to assist small businesses in seed funding.

SOURCE: SBA.GOV