SBA Prequalification Loan Program

Veterans, Women and/or Minorities who own 51% or more of an eligible business (while also operation and managing it) may apply to SBA for a loan guaranty before applying for a bank loan.

• Maximum loan amount: $250,000.
• Average annual sales must not exceed $5 million.
• Applicant business must not exceed SBA size standards for number of employees (for wholesales, the limit is 100 workers; greater limits exist for other types of businesses).
• Loans may be used for working capital, equipment purchases and real estate acquisition.
• Maximum Terms: generally limited to 7 years or less for working capital; up to 25 years for machinery, equipment, furniture and fixtures based on their prudent economic life of assets being financed; and up to 25 years for real estate.
• Interest rates are negotiated (but the maximum a lender can charge is Prime + 2.25% for 7 year loans and Prime + 2.75 for loan terms longer than 7 years.

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