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Small Business Lending SoftwareSmall business lending is done the most by the U.S. Federal Government, making it the nation's largest provider of credit to small businesses. Since 1953, the Federal Government's Small Business Administration has helped small businesses succeed, from start-up through the many stages of growth, with small business lending. Many big businesses whose names are now household words -- FedEx, Intel, Nike, Apple, Ben & Jerry's, Compaq and AOL, just to name a few -- received money from the federal government along the way utilizing small business lending processes. Below are descriptions of the different small business lending products available to small business owners.7(a) Loans Small business lending's primary small business lending program. A 7(a) loan may be used for most business purposes including start-up, expansion, equipment purchases, working capital, inventory or real estate acquisition. Under this small business lending product, the Small Business Administration can guarantee up to $750,000 of a private sector loan. Interest rates for 7(a) loans are negotiated between the applicant and the lender. 7(m) Micro Loan Small business lending MicroLoan Program provides short-term loans of up to $35,000. It is applied to small-scale financing purposes such as inventory, supplies and working capital. Low Documentation Loan (SBA LowDoc) Small business lending product for loans of $150,000 or less. SBA Express Small business lending product that encourages lenders to make more loans to small businesses. Lenders approve loans of up to $150,000. Lenders can also offer revolving lines of credit type of small business lending. SBA Loan Prequalification Program Small business lending product offered to armed forces veterans, minorities, women, exporters, rural small business owners and business owners in certain specialized industries. This program enables the Small Business Administration to prequalify an applicant for a 7(a) loan guarantee before the applicant goes to a bank. The maximum small business lending amount here is $250,000. The Small Business Administration application will focus on character, credit, experience and reliability rather than assets. CAP Lines Small business lending program that features five types of loans for financing the short-term and cyclical working capital needs of:
The Small Business Administration can generally guarantee up to $750,000 of this type of small business loan. 504 Loans Small business lending program that provides long-term, fixed-asset financing through certified development companies. The maximum Small Business Administration debenture generally is $750,000 (up to $1 million in some cases). Defense Loan & Technical Assistance (DELTA) Small business lending program created for defense-dependent small firms that have been adversely affected by defense cuts. The maximum Small Business Administration DELTA loan is $1.25 million. Physical Disaster Small Business Lending Small business lending program that provides funding for up to $1,500,000. Any business that is located in a declared disaster area and has incurred damage during the disaster may apply for this Small Business Administration loan to help repair or replace damaged property to its pre-disaster condition. Community Adjustment & Investment (CAIP) Small business lending program intended to create new, sustainable jobs and preserve existing jobs in businesses at risk due to changing trade patterns with Canada and Mexico. Export Working Capital Program (EWCP) Small business lending program that provides short-term loans to small businesses for export related transactions. Under the EWCP, the Small Business Administration can guarantee up to 90% of a secured loan or $750,000. International Trade Loan (ITL) Small business lending program that offers short and long term financing to small businesses involved in exporting. The Small Business Administration can guarantee up to $1.25 million for a combination of fixed asset financing and working capital. Pollution Control Loan Small business lending program for a business that designs, builds, installs or services a pollution control facility. Maximum Small Business Administration exposure under this program is $1 million. Web Equity Manager® calculates a complete financial analysis on any loan type, from the simplest loan requests to the most complex agricultural and related small business credits utilizing the Farm Financial Standards Ratios and RMA Industry Comparisons. Credit bureau reports can be pulled from within the Web Equity Manager® system and lenders can include that information in their scoring and rating parameters. Web Equity Manager® also provides the Fair, Isaac LiquidCredit® analytic and decisioning service for small business lending, including the industry-leading Small Business Scoring ModelsSM (SBSSSM) functionality so lenders can quickly and confidently process loans up to $250,000 with little or no financial data. Click on the link below (or call ECI) to schedule a live online demonstration of Web Equity Manager® financial analysis capabilities today. 1-800-264-0787 ext. 200 ©
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