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What Types of Loans Are Available for a Startup?

There are three different startup-focused loan programs:


7(a) loan program

Eligibility for a 7(a) loan program comes by meeting certain requirements. Among them is owning a business impacted by NAFTA, implementing pollution control requirements or seeking a loan from a small community/rural-based lender. Check out the SBA website to learn about these and other possible areas that may be eligible for a 7(a) loan.


Microloan program

Small businesses may be eligible for an SBA-backed microloan. Microloans are available for up to $50,000 while the average loan is about $13,000. Microloans, according to SBA, can be used to provide working capital or buy inventory or supplies, furniture or fixtures and machinery or equipment.They can't be used to pay existing debts or buy real estate.


504 loan program

The 504 loan program, administered through Certified Development Companies, provides small businesses with the assets needed to expand or modernize. It covers expenses including:

  • Buying existing buildings

  • Buying land and making improvements

  • Building new facilities or modernizing, renovating or converting existing facilities

  • Buying long-term machinery

  • Refinancing debt to help a business expand through new or renovated facilities or equipment