The U.S. Small Business Administration, established in 1953, provides financial, technical and management assistance to help Americans start, run, and grow their businesses. With a portfolio of business loans, loan guarantees and disaster loans worth more than $45 billion, in addition to a venture capital portfolio of $13 billion, SBA is the nation's largest single financial backer of small businesses. Last year, the SBA offered management and technical assistance to more than one million small business owners. The SBA also plays a major role in the government's disaster relief efforts by making low-interest recovery loans to both homeowners and businesses.

America's 25 million small businesses employ more than 50 percent of the private work force, generate more than half of the nation's gross domestic product, and are the principal source of new jobs in the U.S. economy.

• SBA Loan Benefits and Qualifications
• Complete Listing of All Programs
• Checklist of Required Papers For SBA Applications

Most widely used programs:

Low Documentation Loan (SBALowDoc), a 7(a) Loan Program

Function: Reduces the paperwork involved in loan requests of $150,000 or less. The SBA uses a one-page application for SBALowDoc that relies on the strength of the applicant's character and credit history. Once an applicant satisfies all of the lender's requirements, the lender may request an SBALowDoc guaranty from the SBA.

Customer: Start-up and existing small businesses

Delivered through: Commercial lending institutions

7(a) Loan Guaranty

Function: Provides short- and long-term loans to eligible, credit-worthy start-up and existing small businesses that cannot obtain financing on reasonable terms through normal lending channels. The SBA provides financial assistance through its participating lenders in the form of loan guaranties, not direct loans. The agency does not provide grants for business start-up or expansion. The SBA Office of Capital Access administers the 7(a) Loan Guaranty Program. Loans under the program are available for most business purposes, including purchasing real estate, machinery, equipment, and inventory, or for working capital. The loans cannot be used for speculative purposes. The SBA can guarantee a maximum of $750,000 under the 7(a) program. The guaranty rate is 80 percent for loans of $100,000 or less, 75 percent for loans greater than $100,000, and 90 percent for loans made under the Export Working Capital Program. Generally the interest rate cannot exceed 2.75 percent over the prime lending rate as published in The Wall Street Journal, except for loans under $50,000, where the rates may be slightly higher. Maturity is up to 10 years for working capital and up to 25 years for fixed assets.

Customer: Start-up and existing small businesses, commercial lending institutions

Delivered through: Commercial lending institutions

SBA Loan Prequalification, a 7(a) Loan Program

Function: Enables the SBA to prequalify an applicant for a 7(a) loan guaranty on a loan application of $250,000 or less before the applicant goes to a bank. The program focuses on the applicant's character, credit, experience and reliability rather than assets. SBA-designated intermediaries work with the business owner to review and strengthen the loan application. The review is based on key financial ratios, credit and business history, and the loan-request terms. The program is administered by the Office of Field Operations.

Customer: Small businesses owned by women, minorities, veterans, exporters, plus rural small businesses and those in certain designated industries and geographical areas

Delivered through: Nonprofit intermediaries such as small business development centers and certified development companies operating in specific geographic areas.

Certified Development Companies (CDCs), a 504 Loan Program

Function: Provide long-term, fixed-rate financing to small businesses to acquire real estate, machinery or equipment to expand or modernize. Typically at least 10 percent of the loan proceeds are provided by the borrower, at least 50 percent by an unguaranteed bank loan, and the remainder by an SBA-guaranteed debenture. The maximum SBA debenture is $1 million. DELTA funding is also available under this program.

Customer: Small businesses requiring "brick and mortar" financing

Delivered through: Certified development companies (private, nonprofit corporations set up to contribute to the economic development of their communities or regions)