U.S. Small Business Administration Programs (SBA)

The NCRPC Business Finance Program has helped customers access financing from a number of specialized programs, including those offered from the U.S. Small Business Administration.

SBA 7(a) Guaranteed Loan Program

SBA Rural Lender Advantage 7(a) Guaranteed Loan Program

SBA 504 Loan Program

SBA 7(a) Guaranteed Loan Program

Loan amount available:  Guaranteed bank loan up to $2,000,000

Interest rate:  Maximum limitation of Prime + 2.75%

Term:  7 years for working capital, inventory, and equipment 25 years for real estate

Primary eligibility requirements:  Bank participation (this is a bank loan guaranty program)

Special requirements:

Bonded contractor for construction projects over $10,000

Third party appraisal for purchase of existing business

Special features:  75-85% guaranty up to $1,500,000 maximum guaranty

SBA Rural Lender Advantage 7(a) Guaranteed Loan Program

Loan amount available:  Guaranteed bank loan up to $350,000

Interest rate:  Maximum limitation of Prime + 2.75%

Term:  7 years for working capital, inventory, and equipment 25 years for real estate

Primary requirements:  Bank participation-this is a bank loan guaranty program

Special requirements:

Bonded contractor for construction projects over $10,000

Third party appraisal for purchase of existing business

Special features:  75-85% guaranty

SBA 504 Loan Program

Loan amount available:  30-40% up to $2,000,000 in rural area with secondary collateral position based on appraised value

Interest rate:  20 year fixed market rate

Term:  10 years for equipment with equal or greater useful life, 20 years for real estate

Primary requirements:  50% Bank participation in first collateral position

Special requirements:

Bonded contractor

Appraisal on plans/specs prior to submitting application

Working capital and inventory ineligible

Special limitations on using for equipment/furniture/fixtures

Special features:  10-20% cash down payment requirement, assuming appraisal doesn’t require additional cash.

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See Business Finance Program for assistance.