SBA Loan Kansas

The SBA is the Small Business Administration which was established in 1953 after the Small Business Act was introduced. It was established to aid, counsel, assist, and to protect the interest of the small business. Their programs now include financial and federal contract procurement assistance, management assistance, and specialized outreach to women, minorities, and armed forces veterans. They also provide loans to victims of natural disasters and those needing advice and assistance in international trade. The loan programs are considered part of their financial assistance to entrepreneurs in Kansas.

The SBA not only guarantees loans and also lends money under certain circumstances but they also assist entrepreneurs in making the right management decisions. They help by assisting entrepreneurs in Kansas in forecasting the future of their business, planning for that future, and managing employees to reach that future goal. They also help in cultivating leadership qualities in managers and entrepreneurs. They help teach leadership traits, professional development, and business ethics. They also help entrepreneurs pinpoint marketing opportunities as well as assisting in showing them how to use today's technology for their business. The SBA has a program for all walks of life including young & old, women & minorities.

The SBA has a basic loan guaranty program called the 7(a) loan guaranty. This program helps small businesses in Kansas obtain loans that they normally would not obtain. The SBA guarantees that the lender will receive most of their money back if the business defaults on the loan.

Lenders can become Certified Lenders by showing that they have the ability to process, close, service, and liquidate loans. They must also have a satisfactory history with the SBA, an acceptable SBA rate, and have shown the ability to work well with the SBA. In return the SBA promises a fast loan decision. The proceeds of the loan can be used for any business purpose. If the loan is for working capital then the maturity is 10 years and if it is for fixed assets then the maturity is 25 years.

Another loan program is the Certified Development Company program which is also called the 504 loan program. This program allows businesses in Kansas to purchase real estate, machinery, or equipment for the purpose of expansion or modernizing the business.

The Micro loan is a very popular loan program for those who need up to $35,000. This loan can not be used to purchase real estate or to pay existing debt and they are not guaranteed by the SBA. The Low Doc program is a loan program in which the lender doesn't require as much paperwork as with other traditional loans.

Loans in this category are primarily for exporters and those who mostly do business in foreign countries. The Export Working Capital Program is one of these programs and provides short-term working capital for exporters. The SBA encourages the lending of capital to these types of companies by guaranteeing the repayment of up to $1.5 million or 90% percent of the loan amount, whichever is less. The SBA Express provides those businesses with potential in being good companies to export goods but who don't have the funds to purchase goods or to produce them in house. Loan proceeds can be used for expansion, producing of goods, and to service contracts. The loan proceeds must be used in a way to show expansion or improvement of the company.

The Gulf Opportunity Pilot Loan Program is a loan program designed to expedite small business financing to those communities that were severely affected by hurricane Katrina and Rita. The businesses may already be located in these areas or they plan to relocate to these areas. The maximum loan is $150,000 and the loan guaranty is 85%. All SBA Express lenders are approved in this program without any further approval needed. Lenders use their own paperwork and procedures and they must also perform credit analysis and can use credit scoring if needed.

There are also Contract Surety Bonds that are most useful for contractors and the project owners. This bond insures that the contractor lives up to his part of the contract and if the contractor can't live up to his part of the contract, the surety steps in to make sure the contract is fulfilled.

The SBA also has an 8(a) Business Development program as well as a Small Disadvantaged Business Certification Program. These programs offer a range of assistance to socially and economically disadvantaged firms. Participants can receive contracts totaling up to $3 million for goods and services and $5 million for manufacturing. Businesses can also perform joint ventures and teams to bid on different contracts. Those looking to qualify must be owned and controlled by a socially and economically disadvantaged group. These groups include but are not limited to African Americans, Hispanic Americans, and Native Americans. Others can be admitted if they show through evidence that they are also disadvantaged due to race, sex, color, physical handicap, or residence. All individuals must also have a net worth of less then $250,000, be in business for at least two years, display good character, and display reasonable success potential.