As defined by the Small Business Administration (SBA), a small business is any business venture which has less than 500 employees and less than $7 million in annual receipts. In the United States, there are various types of small business loans to satisfy the business plan being presented to the lender.
The Different SBA Loan Programs
7(a) Loan Programs
Businesses with special requirements (such as those in exports or those operational in rural areas) are covered under this program. This is considered to be the most flexible choice, and also the most suitable one if you have a start-up in mind. The different 7(a) loan programs are:
- Special Purpose Loans: offers 7(a) loans to those businesses which have been affected by NAFTA, to assist Employee Stock Ownership plans and so on.
- Export Loan Programs: fewer than 70 percent of the total export businesses in the U.S. have a maximum employee count of 20. The various export loan programs further expand their export activities.
- Rural Business Loans: this program is aimed at providing a simpler and more streamlined 7(a) process to acquire loans for businesses operating in the rural areas.