Small Business Administration (SBA)
The SBA has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. SBA offers a variety of loan programs for very specific purposes:
SBA 504 Loan
The SBA 504 loan program is a long-term financing tool providing small businesses with long-term, fixed-rate financing to acquire major fixed assets for expansion or modernization. Projects are financed through a public/private partnership which involves private lenders financing up to 50% of the project costs, the Michigan Certified Development Corporation covering up to 40% of the project costs, and the borrower investing at least 10% of the project cost (equity).
- Construction of new facilities or modernizing, renovating or converting existing facilities
- Purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
- Purchase of land, including existing buildings
- Purchase of long-term machinery and equipment.
- This program is designed to assist healthy, expanding businesses that have been in operation for two or more years
SBA 7(a) Loan
The SBA 7(a) loan program helps start-up and existing small businesses in obtaining a loan guarantee to enhance conventional financing. Businesses apply for SBA 7(a) through a financial institution that submits the application to the SBA.
- Purchase of land or buildings, new construction as well as expansion of existing facilities
- Purchase of equipment, machinery, furniture, fixtures, supplies, or materials
- Long-term working capital, including the payment of accounts payable and/or the purchase of inventory
- Short-term working capital needs
- Purchase an existing business
For more information please call 313-226-6075 or visit their website.