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The Small Business Administration (view source)
Revision as of 17:29, 13 November 2015
, 17:29, 13 November 2015no edit summary
*In 2015 the SBA approved 63,461 7(a) loans for a sum of $23.58b at an average of $371k. The total of all loans guaranteed was $111.769b with a bad debt rate (called charged off) of less than 1 per cent. [http://www.brw.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ]
*7(a) program is targeted towards larger companies with 2-3 years of experience. This loan is not geared towards startups or "smaller" large businesses, as evidenced by the average loan size of $317,000. [http://www.brw.com.au/p/business/why_we_should_clone_america_small_Y2ehdTvAi81O87SOECPr9H| ]
===8(a) Loan Program===
*Target towards certified socially and economically disadvantaged companies. Socially disadvantaged categories include race and ethnicity.
*Starter program for minority businesses, which must leave the program after nine years.
*Entrepreneurs who participate in the 8(a) Program are eligible for the 7(a) Guaranty Loan and the Pre-Qualification Programs. Businesses must be owned by a socially and economically disadvantaged individual.
*Participants can receive sole-source contracts, up to $4 million for goods and services and $6.5 million for manufacturing. To qualify as economically disadvantaged, a borrower must have a net worth of less than $250,000, assets under $4 million, as well as two years’ worth of tax returns.
*The firm must be at least 51 percent owned by the program applicant and owners must show good character.
===504 Loan Program===
*Intended to supply funds for asset purchases (i.e., land or equipment)
