SBA Loans - U.S. Small Business Administration

Tom O'Brien

Recent Developments

October 26, 2009 - Comments on President Obama's proposal to increase lending limits on SBA loans, by Tom O'Brien

SBA Loans are the life-blood of many closely-held businesses. These loans can be used for nearly any business purpose, such as the purchase of business assets, commercial real estate, machinery and equipment, and inventory. They can also be used for working capital.

SBA loans are made through a "preferred lender" program and are guaranteed by the U.S. Small Business Administration. In many cases, SBA Loans offer lower down payments and longer terms than conventional bank loans. The primary types of SBA Loans are:

• SBA  "7(a) Loans" are made and underwritten by various "preferred lenders" for almost any business purpose.
  • Acquiring a closely-held business?
  • Looking to start a new business?
    • An SBA Loan may be the best financing available.
      
• SBA "504 Loans" offer growing businesses long-term fixed-rate financing for major fixed assets, such as land and building acquisitions. 504 Loans are administered by Certified Development Companies, which are non-profit corporations set up to contribute to the economic development of the community. An SBA 504 loan is typically a second loan made in conjunction with an SBA 7(a) loan or a traditional lending bank loan. A 504 loans must be used for fixed asset projects, not for working capital, inventory, or refinancing debt.

Tom O'Brien has substantial experience representing borrowers in obtaining SBA 7(a) loans and SBA 504 loans, and in complying with the numerous rules, regulations, and Standard Operating Procedures of the SBA. Tom also has extensive experience representing SBA Lenders, and is familiar with "both sides" of these transactions.

Tom can be reached at (804) 697-2070 or tobrien@spottsfain.com.