Does the SBA have business grants?

No. The SBA does not provide grants for the purpose of business start-up or expansion. The SBA does offer several loan programs.

How do I know if I qualify as a small business so I can receive SBA assistance?  

Approximately 95% of all businesses are eligible for SBA assistance. Size standards vary widely depending upon the industry; however, as a general rule, your business is within SBA size limits if it is in manufacturing or wholesaling with fewer than 100 employees or in retailing or service with annual sales under $5,000.000 To find out more about size standards, call the SBA Office of Size Standards at (202) 205-6618. 

Do I have to be declined by a bank?  

No, you do not have to be turned down by a lender to qualify for a loan guaranteed by the SBA. 

What is the interest rate?  

Interest rates on SBA guaranty loans are negotiated between the lender and borrower. Rates are variable and may not exceed 2.75 percent over the New York prime rate. Slightly higher interest rates may be charged on loans under $50,000 

What are the loan limits?  

The SBA does not set loan minimums. Many lenders may prefer to process loans for under $100,000 under SBA's LowDoc program. The maximum amount the SBA can guaranty is generally $750,000. 

How much money do I need to have in order to qualify for an SBA loan?  

A borrower's capital contribution generally must be one-fifth to one-third of the total project cost. 

How long will it take to get my loan?  

A credit decision on a complete loan package is usually made within ten working days after the SBA, not including bank-processing time, receives it. This assumes that the borrower and lender have provided all the information necessary to process the loan. 

Where can I get the loan application?  

SBA loan forms are available from a participating lender, who will also be able to provide information about both the bank and SBA documentation required. The above text is taken from Small Business Resource Guides published for individual SBA District Offices in co sponsorship with RENI Publishing of Winter Haven FL 33880-3052. SBA's participation in this publication is not an endorsement of the views, opinions, products or services of the publisher or any advertiser or other participant appearing herein. All SBA programs or cosponsored programs are extended to the public on a nondiscriminatory basis. Individual District Office editions are copyrighted. SBA Auth. No. 97-7110-64.