The U.S. Small Business Administration (SBA) was established to help businesses secure financing. SBA programs reduce risk for lenders and enables easier access to capital. There are two primary SBA financing programs offered; the SBA 504 program which offers attractive real estate and equipment financing; and the SBA loan guarantee program which offers a more flexible use of funds. Together, these programs are great complements to each other and are often used together to fully meet business financing needs.
The U.S. Small Business Administration (SBA) 504 loan program, offered by BLP, was developed by Congress to assist growing businesses by offering an attractive financing option for real estate and equipment needs. The SBA has structured the program to work in partnership with the applicant business’ financial institution. To apply for SBA 504 financing, the business and its financial institution would work directly with BLP. BLP acts as an administrator of the program and packages everything directly with the customer for SBA.
50% Lender 40% SBA 10% Borrower
Typical financing structure of the SBA 7(a) program:
The interest rate, loan term, amount, down payment and the purpose of financing is negotiated between the lender and small business.
Through our partnership with the ATW Miller Group, LLC, BLP is able to offer the Small Business Administration (SBA) 7(a) Loan Guarantee program. The 7a program, is the most popular loan program offered by SBA.
The SBA 7(a) loan guarantee program is provided to our lender partners to mitigate risk. The program also allows lenders to use the program for small businesses that would not normally qualify for conventional financing through: