Loan Glossary

A nonprofit organization that partners with banks on SBA 504 loans to provide long-term, fixed-rate financing for commercial real estate and equipment purchases.

A legal commitment by a business owner to personally repay a business loan if the business cannot. Required for most SBA loans and many commercial loans. Puts personal assets at risk.

An SBA loan designed for major fixed assets — commercial real estate and equipment. Structured with a bank (50%), a Certified Development Company (40%), and borrower equity (10%). Max project size: $5.5M+.

The SBA's primary loan program for small businesses. Used for working capital, equipment, real estate, or refinancing. Maximum loan amount: $5 million. Lender is partially guaranteed by the SBA.

A faster SBA loan program with streamlined approval (36-hour turnaround for the SBA response). Max $500,000 for lines of credit or term loans. Carries a higher interest rate than standard 7(a) loans.

The SBA's promise to repay a portion of the loan to the lender if the borrower defaults. The SBA guarantees up to 85% for loans ≤$150K and up to 75% for loans >$150K in the 7(a) program.

SBA loans up to $50,000 for startups and small businesses that need smaller amounts of capital. Provided through nonprofit intermediary lenders, with average loan amounts around $14,000.

Criteria that define whether a business qualifies as "small" for SBA loan eligibility. Based on number of employees or average annual receipts, varying by industry.