SBA Loan Key Terms

Search SBA loan terms including 504 and 7(a) loans

SBA loans are among the best sources for financial aid for the small business. The Small Business Administration offers a level of guarantee for these loans. The loans are still provided through a third party lender. If the borrower fails to follow the agreed terms, the SBA offers financial support to the lender to guarantee the loan. SBA loans include the 7(a) loan, the 504 SBA loan program and disaster assistance loans. Take the time to learn other key terms associated with the SBA loan programs.

 

7(a) loan

The 7(a) loan is one of the SBA loans commonly used by start-up businesses. This particular loan is an opportunity for low-income borrowers, veterans and new and emerging businesses to get a start.
Try: AllBusiness provides more information on the 7(a) loan program, including pre-qualifications required for it.

504 SBA loan program

The 504 SBA loan program is another of the government-backed programs for businesses. This particular loan program is mainly used to purchase real estate, purchase major equipment or to build buildings for commercial use. These programs are aimed at expanding businesses.
Try: The City of St. Louis website provides more information on the 504 SBA loan program, including an application for it.

Disaster assistance loans

The SBA offers disaster assistance loans. These loans have a design to provide funds to business owners who are struggling with natural and man made disasters. They are a low cost way of getting the business back up and running.
Try: The Oklahoma Small Business Development Center provides more information on disaster assistance loans.

Economic Injury Disaster Loans (EIDL)

The SBA Economic Injury Disaster Loan is a program providing small businesses with low interest loans to help them through difficult economic times. It is specifically for those businesses suffering substantial economic injury. The loan gives the business operating expenses until the business can recover.
Try: The Washington Military Department provides the details of Economic Injury Disaster Loans.

Business Physical Disaster Loans

The SBA provides Business Physical Disaster Loans. These loans are for nonprofit and for profit businesses of any size that suffer physical damage. The damage may be the result of a variety of types of disasters.
Try: GovLoans provides more information on Business Physical Disaster Loans.

Surety bond

Another type of SBA loan product is the surety bond. This is an agreement between the surety, the contractor and the project owner. The surety provides assurance that the project will be complete even if the project owner fails to do so.
Try: The Small Business Administration provides more information on surety bonds.

Copyright © 2011 Business.com, Inc. All Rights Reserved.

---