SBA Loans

Summary

This practice note provides an overview of the types of loans available to small businesses through programs of the U.S. Small Business Administration (SBA) to assist counsel in the representation of borrowers and lenders under SBA loan programs. The main categories of loans offered through the SBA are 7(a) loans, 504 loans, microloans, and disaster recovery loans. This practice note provides background on the SBA's loan programs and a general discussion of the eligibility criteria for borrowers, the basic loan application requirements, the permitted uses for the loan proceeds, and the key terms of some common types of loans. In addition, this practice note describes the SBA's certification and authorization of lenders in offering the loan programs.