112: Eric Coffie - Diving into the SBA Programs: SBIC, 7a and 504

In today’s episode, a previous Youtube Live video of me talking about the SBIC Program. An SBIC or Small Business Investment Company is a privately owned and managed investment fund that’s licensed and regulated by the SBA. So I have discussed some of the leading providers of the SBIC Funds and if you’ve never heard of a fund, you'll probably recognize some of the household names who have benefitted from these programs.

The SBIC program is one of the U.S. Small Business Administration's (SBA) financial assistance programs. An SBIC, or Small Business Investment Company, is a privately owned and managed investment fund that's licensed and regulated by SBA. An SBIC uses its own capital, plus funds borrowed with an SBA guarantee, to make equity and debt investments in qualifying small businesses.

I also talked about the 7(a) Loan Program, SBA’s most common loan program, which includes financial help for small businesses with special requirements. This is the best option when real estate is part of a business purchase, but it can also be used for short and long-term working capital, refinance current business debt and purchase furniture, fixtures, and supplies. 

The maximum loan amount for a 7(a) loan is $5 million. Key eligibility factors are based on what the business does to receive its income, its credit history, and where the business operates. Your lender will help you figure out which type of loan is best suited for your needs.

Tune in to this episode now to know more about the SBA Programs.