Them are a number of special loan guaranty programs under the 7(a) program that address specific needs of start­up or established businesses. They are governed, for the most part, by the same rules, regulations, fees, interest rates, etc., as the regular 7(a) loan guaranty. Your lender can advise you of any variations.

LowDoc is one of SBA's most popular programs. Once you have met your lender's requirements for credit, LowDoc offers a simple, one-page SBA application form and rapid turnaround on approvals for loans up to $150,000 (for loans over $50,000, you must also provide a copy of U.S. Income Tax Schedule C or the front page of the corporate or partnership returns for the past three years). The SBA will guarantee up to 80 percent of the loan amount. Completed applications are processed quickly by the SBA, usually within two or three business days. Proceeds may not be used to repay certain types of existing debt. Business start-ups, as well as businesses with average annual sales for the past three years not exceeding $5 million and with 100 or fewer employees, including affiliates, are eligible.

SBAExpress, formerly SBA's FA$TRAK, is available for loans up to $150,000. The program authorizes SBA preferred lenders to use mostly their own forms, analyses and procedures to process, service and liquidate SBA guaranteed loans. The SBA guarantees up to 50 percent of an SBAExpress loan. Loans under $25,000 to not require collateral. This is a change from the FA$TRAK requirements. Like most 7(a) loans, maturities are usually five to seven years for working capital and up to 25 years for real estate or equipment. Revolving lines of credit are allowed for a maximum of five years.

Contact your local SBA office for the names of approved banks.

This specialized umbrella loan program is designed to help small businesses meet their short­term and cyclical working capital needs. The CAPLines can be used to finance seasonal working capital needs; finance the direct costs of performing certain construction, service and supply contracts, finance the direct cost associated with commercial and residential construction performed on a speculative basis (without a firm commitment for purchase); finance operating capital by obtaining advances against existing inventory and accounts receivable: and consolidate short term debt. SBA provides a 75 percent guarantee. There are five distinct programs under the CAPLine umbrella:

The Contract Loan Program is used to finance material and labor needs for a specific contract or contracts. If used for one contract, it is generally not revolving; if used for more than one contract at a time, it can be revolving. The loan maturity is used based on the length of the contract, but no more than five years.

The Seasonal Line of Credit Program finances the short­term seasonal increases of accounts receivable and inventory. The business must have a definite established seasonal pattern and thus must have been in business for a period of 12 months in order to establish that pattern. The loan does not revolve during the season but may be used over again after a "clean­up" period of 30 days. These also may have a maturity of up to five years. The business may not have another seasonal line of credit outstanding but may have other lines for nonseasonal working capital needs.

The Builders Line Program provides financing for small general contractors involved in residential or commercial construction or building rehabilitation for resale. Loan maturity is generally three years but can be extended up to five years if necessary. Proceeds are used solely for direct expenses of acquisition, immediate construction, and/or significant rehabilitation of the residential or commercial structures. The purchase of the land can be included if it does not exceed 20 percent of the loan proceeds. Up to five percent of the proceeds can be used for physical improvements that benefit the property.

The Small Asset­Based Line can be used for revolving lines up to $200,000 to purchase inventory, pay direct labor, or finance accounts receivable and is advanced against existing inventory and accounts receivable. Repayment comes from the collection of accounts receivable, and this line of credit must revolve. They do not require periodic servicing and monitoring of the collateral for which service the lender can charge up to two percent annually to the borrower. These lines are generally used by businesses who provide credit to their customers.

The Standard Asset­Based Line is similar to the Small Asset­Based Line, but for loan amounts over $200,000. It does require stricter servicing and monitoring, and the lender may pass the costs along to the borrower.

The Export Working Capital Program is a line of credit for financing foreign accounts receivable. It is a transaction-based program and can be revolving or nonrevolving. The SBA provides a 90 percent guarantee to the lender. The business must have been in operation for at least 12 months prior to the application, and the proceeds can be used to finance materials and labor needed to manufacture or purchase goods and services for sale in foreign markets, including such items as consulting services, overseas travel to establish a market, and participation at trade shows. Funds cannot be used to refinance existing debt or purchase fixed assets. The maturity is generally 12 months or less but can be renewed up to a total of 36 months.

The United States Export Assistance Center (USEAC) provides assistance and information on a wide variety of export programs including the SBA's Export Working Capital Program (EWCP). In addition, the Center promotes and markets the Agency's International Trade Loan Programs. The USEAC provides a mix of marketing assistance available through the Department Of Commerce, the state SBDC network and the financing assistance available from participating agencies including the SBA and the Export­Import Bank.

Under EWCP, the SBA guarantees up to 90 percent of the loan, up to $750,000. Loan maturities may be for up to three years with annual renewals. Loans can be for single or multiple export sales and can be extended for preshipment working capital and postshipment exposure coverage or a combination of the two. Proceeds can only be used to finance export transactions. The SBA can guarantee up to $1.25 million on an International Trade Loan (ITL) for a combination of fixed­asset financing and working capital. The working capital portion cannot exceed $750,000.

This program provides short­term and long­term financing to small businesses that are engaged in international trade, preparing to engage in international trade, or adversely affected by competition from imports. The SBA can guarantee up to $1.25 million for a combination of fixed­asset financing and permanent working capital.

DELTA is a joint effort of the SBA and the Department of the Defense to provide financial and technical assistance to defense-dependent small firms affected by defense reductions. The goal is to help affected small firms diversify into the commercial market while remaining a part of the defense industrial base. Reductions affecting business may be the result of any number of actions, such as cuts in defense spending, termination of defense contracts or the closure or realignment of military installations.

SBA may guarantee 75 percent of a loan up to $1.25 million under the 7(a) program, or $1 million under the 504 program. Technical assistance, including help in preparation of a business plan and loan application package, is available through Small Business Development Centers.

504 is the SBA's economic development instrument that supports American small business growth and helps communities through business expansion and job creation. The SBA 504 loan program provides long­term, fixed­rate, subordinate mortgage financing for acquisition and/or renovation of capital assets including land, buildings and equipment. Virtually all types of for-profit small businesses are eligible for this program.

• Lower down payment; allows a business to conserve valuable operating capital by injecting just 10% of total project cost.

• Fixed interest rate; borrower knows cost of occupancy for the next 20 years.

• Rate is usually below market rate.

• All project costs can be financed, including acquisition (land and building, land and construction of building, renovations, machinery and equipment) and soft costs such as title insurance, legal, appraisal, environmental and bridge loan fees. Closing costs may be financed.

• Collateral is typically assets financed; allows other assets to be free of liens and available to secure other needed financing.

• Long­term: real estate loans are 20-year term, heavy equipment 10­ or 20-year terms and are self­amortizing.

• 504 program encourages banks and other lenders to make loans in first position on reasonable terms, helps them retain growing customers, and provides CRA credit.

• 504 program benefits the borrower's community through job creation and retention.

• Small ­ net worth under $6 million, net profit after taxes under $2 million, or meet other SBA size standards.

• Organized as for­profit.

• Any type of business ­ retail, service, wholesale or manufacturing.

The SBA's 504 lending intermediaries, Certified Development Companies (CDCs) serve your community to finance business expansion needs through 504. Its professional staff works directly with you to tailor a financing package that meets program guidelines and the credit capacity of your business. The 504 Loan Program is the first national financing program specifically designed for expanding small business whose investment will create jobs.

The most active and expert lenders qualify for the SBA's Certified and Preferred Lenders Program. Participants are delegated partial or full authority to approve loans, which results in faster service. Certified lenders are those that have been heavily involved in regular SBA loan­guaranty processing and have met certain other criteria. They receive a partial delegation of authority and are given a three-day turnaround on their applications (they may also use regular processing).

Certified lenders account for 10 percent of all SBA business loan guaranties. Preferred lenders are chosen from among the SBA's best lenders and enjoy full delegation of lending authority. This authority must be renewed at least every two years, and the lender's portfolio is examined by the SBA periodically. Preferred loans account for 18 percent of SBA loans. For list of certified/preferred lenders in your area contact your local SBA office.

These loans are provided directly by a network of intermediaries approved by the SBA for the purpose of making microloans (from $100 up to $25,000) to small businesses for the purchase of machinery, equipment, furniture, fixtures, inventory and also for working capital. These intermediaries also provide technical and management assistance to the owners. Most small businesses who are unable to obtain funding through conventional sources or the other SBA guaranteed loan programs should contact the microloan lenders in their area.

Conatac your local SBA office for information on local Microloan Lenders.

There are a variety of alternatives to bank financing for small businesses, especially business start­ups. The Small Business Investment Company Program is the gap between the availability of venture capital and the needs of small businesses that are either starting or growing. Licensed and regulated by the SBA, SBICs are privately owned and managed investment firms that make capital available to small businesses through investments or loans. They use their own funds plus funds obtained at favorable rates with SBA guaranties and/or by selling their preferred stock to the SBA. SBICs are for­profit firms whose incentive is to share in the success of a small business. In addition to equity capital and long­term loans, SBICs provide debt­equity investments and management assistance. The SBIC Program provides funding to all types of manufacturing and service industries. Some investment companies specialize in certain fields, while others seek out small businesses with new products or services because of the strong growth potential. Most, however, consider a wide variety of investment opportunities.

The Angel Capital Electronic Network (ACE­Net) is a nationwide Internet-based listing service that provides information to angel investors on small, dynamic, growing businesses seeking $250,000 to $5 million in equity financing. ACE­Net, sponsored by the Office of Advocacy of the U.S. Small Business Administration, was announced by the President of the United States in October 1996. It is a major effort by the Office of Advocacy to start systematizing, on a nationwide basis, and expanding information available to investors on firms seeking equity financing. Once fully operational, ACE­Net will be run as a private, independent, not­for­profit organization.

ACE­Net is not a matching service and does not serve as an investment adviser or broker­dealer. In addition, no securities trading takes place on ACE-Net.

Applications and more detailed information are available at the ACE­Net Internet site, which can be accessed at http://www.sba.gov/ADVO/acenet.html.