The South Metro Denver Small Business Development Center can help with the preparation of business plans and the mountains of paperwork that can sometimes overwhelm you.
Small Business Administration (SBA) Loan Programs
SBA 504 Loan Guarantee Program
The SBA 504 program provides long term, fixed rate financing to small and medium sized businesses for financing construction, acquisition, and renovation of buildings and for purchasing major equipment.
The program is generally intended to assist established, profitable, growing businesses by offering low down payment, long-term financing at a fixed interest rate. Working capital and refinancing are ineligible purposes.
SBA 7A Loan Guarantee Program
The SBA 7A program guarantees loans made by commercial lenders to small businesses. Loans can be used for business or property acquisition, expansion, equipment purchase, working capital and debt consolidation. Under CAPlines, participating lenders extend a revolving line of credit for up to 5 years, SBA provides a guarantee of up to 75% or $750,000 whichever is less, on credit lines that can exceed one million dollars.
SBA's Microloan Program
Under this program, loans range from less than $100 to a maximum of $25,000, averaging about $10,000.
Other SBA Loan Programs
The SBA operates numerous loan guarantee programs to assist specific groups, including:
- small general contractor loan guarantee
- seasonal line of credit guarantee
- contract line of credit
- export revolving line of credit
- international trade loan program
- pollution control financing
- surety bonds for small contractors
Other specialized loan programs are being developed and special provisions govern eligibility for each.
Small Business Investment Companies (SBIC)
SBIC's provide equity capital and subordinated loans to small businesses. SBIC's are privately owned and capitalized companies that are licensed and regulated by the U.S. Small Business Administration. SBIC's invest in small businesses according to their own investment criteria.
A specialized type of SBIC is the "Section 301(d) SBIC" (Minority Enterprise SBIC) which restricts its funding to businesses owned or operated by socially or economically disadvantaged persons. Women-owned and Vietnam veteran-owned firms may qualify. A MESBIC can also provide management assistance to companies that it finances.
The definition of who qualifies as a minority person may differ among programs and governments in regard to race, gender, nationality or income level.
SBA 8(a) and 7(j) Programs
Businesses owned by "socially and economically disadvantaged persons" can take advantage of two programs managed by the U.S. Small Business Administration: the 8(a) Procurement Program and the 7(j) Management and Technical Assistance Program.
The Section 8(a) program assists minority businesses to compete for contracts offered by federal agencies. Under the law federal agencies are required to procure a certain amount of goods and services from "disadvantaged" businesses. Small Business Administration certifies firms for the 8(a) program, negotiates and awards contracts to the firms, and provides management assistance.
The Management and Technical Assistance 7(j) program offers a range of assistance to 8(a) and non-8(a) firms who meet certain qualifications such as a business owned by a low income person. For further information contact the Small Business Administration.
For further information, contact: Small Business Administration
Small Business Administration »
Colorado District Office
721 19th Street, Suite 426
Denver, CO 80202
Phone: 303.844.2607 or 1.800.8-ASK-SBA