7(a) Loan Guarantees

To provide guaranteed loans from lenders to small businesses which are unable to obtain financing in the private credit marketplace, but can demonstrate an ability to repay loans if granted, in a timely manner.

Guaranteed loans are made available to for profit small businesses.

The SBA's
7(a) lending authority includes: (1) Standard 7(a); (2) SBAExpress; (3) the Cap Line Program; the Qualified Employee Trust (ESOP); (4) International Trade; and (5) Export Working Capital loan programs.

Agency - Small Business Administration

The Small Business Administration maintains and strengthens the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters.

Office - See Regional Agency Offices.

Initial contact should be with one of the 68 District Offices (https://www.sba.gov/tools/local-assistance/districtoffices) listed in Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.



Program Accomplishments

Fiscal Year 2016: 22,734,000,000. Fiscal Year 2017: 27,500,000,000. Fiscal Year 2018: 29,000,000,000.

Uses and Use Restrictions

All funds guaranteed by SBA under the 7(a) program are subject to the following general use restrictions: Excludes gambling establishments, nonprofit enterprises, speculators in property, lending or investment enterprises, and financing of real property held for investment; also excludes funding for sexually prurient enterprises, firms engaged in religious proselytizing, and funds to indiscriminately relocate the business.

Funds must not otherwise be available on reasonable terms, nor used to pay off a loan to an unsecured creditor who is in a position to sustain loss. ? Standard 7(a) loans may be used to construct, expand, or convert facilities; to purchase building equipment or materials; and for working capital.

? SBA Express Program loan proceeds may be used to for the 7 (a) uses above and permits lender participants to utilize their own forms and processes in exchange for a lower guarantee percentage. ? Qualified Employee Trust loans are used to permit employees to acquire eventual ownership interests in a small concern through an Employee Stock Ownership (ESOP) structure. ? The four (4) Cap Lines Programs can be used to finance seasonal working capital needs; finance the direct costs of performing certain construction, service and supply contracts, subcontracts, or purchase orders; finance the direct cost associated with commercial and residential construction; or provide general working capital lines of credit. ? International Trade loan proceeds are used to finance assets that significantly expand an existing export market or develop new markets. ? Export Working Capital 7(a) loans may be used to pay for the manufacturing costs of goods for export; to purchase goods or services for export; to support standby letters of credit to act as bid or performance bonds; and/or to finance foreign accounts receivable.

Additional information is available on SBA's website at www.sba.gov/7a-loan-program.

Eligibility Requirements

Applicant Eligibility

Not applicable.

Beneficiary Eligibility

Small businesses that meet the size and eligibility standards.

Credentials/Documentation

Additional information is available on SBA's website at www.sba.gov/7a-loan-program. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

Preapplication coordination is not applicable.

Environmental impact information is not required for this program.

This program is excluded from coverage under E.O.

12372.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Applications for guarantees are submitted by the participating lender to SBA electronically.

Award Procedures

SBA provides approval notification to participating lender who provides a commitment letter and loan to the applicant.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

Small Business Act, Section 7(a) (15 U.S.C. 636(a)) , Public Law 97-35.

Range of Approval/Disapproval Time

From one to ten days from date of receipt of a complete application, depending on type of loan and type of lender program.

Appeals

If reconsideration is requested within six months after decline or withdrawal, no new application is required.

Renewals

Additional information is available on SBA's website at www.sba.gov.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. Matching Requirements: Additional information is available on SBA's website at www.sba.gov. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

See the following for information on how assistance is provided. Information is available at www.sba.gov. See the following for information on how assistance is awarded/released: Information is available at www.sba.gov.

Post Assistance Requirements

Reports

Please see Program Performance Reports at SBA?s website at https://www.sba.gov/about-sba/sba-performance/performance-budget-finances/small-business-administration-sba-loan-program-performance.

Additional information available at SBA's website at www.sba.gov.

Information available at www.sba.gov.

See www.sba.gov.

Information available at www.sba.gov/7a-loan-program.

See www.sba.gov.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. When necessary, on a case-by-case basis.

Records

Adequate accounting system.

Financial Information

Account Identification

73-1154-0-1-376.

Obigations

(Guaranteed/Insured Loans) FY 16 $22,734,000,000; FY 17 est $27,500,000,000; and FY 18 est $29,000,000,000

Range and Average of Financial Assistance

Additional information is available on SBA's website at www.sba.gov.

Regulations, Guidelines, and Literature

See www.sba.gov

Information Contacts

Regional or Local Office

See Regional Agency Offices. Initial contact should be with one of the 68 District Offices (https://www.sba.gov/tools/local-assistance/districtoffices) listed in Appendix IV of the Catalog of Federal Domestic Assistance under Small Business Administration.

Headquarters Office

Robert Carpenter 409 3rd Street, SW 8th Floor, Washington, DC, District of Columbia 20416 Email: Robert.Carpenter@sba.gov Phone: 202-205-7654

Criteria for Selecting Proposals

Not Applicable.



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