The U.S. Small Business Administration’s SBA 504 Loan or Certified Development Company program is designed to provide financing for veterans and the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates.
The program is so named because it was originally created by Section 504 of the Small Business Investment Act of 1958. Section 504 was subsequently codified at 15 U.S.C.
As part of its mission to promote the development of businesses, the SBA offers a number of different loan programs tailored to specific capital needs of growing businesses.
The maximum amount of the loan is $5 million ($5 million for meeting SBA-defined policy goals, and $5.5 million for manufacturers and some energy-related policy goals), and if the borrower defaults, the private sector lender is paid off first, reducing the risk to the lender and encouraging loans.
In order to qualify for the program, the borrower must meet the SBA’s definition of small business and must plan to use over half (51%) of the property for its own operations within one year of ownership; if the building is to be newly constructed the borrower must use 60% at once and plan to occupy 80%.
The borrower may form a real-estate holding company that lease 100% to the operating business, which then subleases surplus space (up to 49%).
To qualify for this program, U.S. citizens or permanent residents must hold a majority of the ownership of the operating companies and the holding company.
2. Small Business Administration Loans For Veterans
The U.S. Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses.
The mission of the Small Business Administration is “to maintain and strengthen the nation’s economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters”.
The agency’s activities have been summarized as the “3 Cs” of capital, contracts and counseling.
SBA loans are made through banks, credit unions and other lenders who partner with the SBA.
The SBA provides a government-backed guarantee on part of the loan. Under the Recovery Act and the Small Business Jobs Act, SBA loans were enhanced to provide up to a 90 percent guarantee in order to strengthen access to capital for small businesses after credit froze in 2008. The agency had record lending volumes in late 2010.
3. Streetshares Business Loan
StreetShares, Inc. is a financial technology company and small business funding marketplace based outside of Washington, D.C.
StreetShares Inc. launched in 2014 as a military veteran-focused peer-to-peer lender by Mark L. Rockefeller, Mickey Konson, and Ben Shiflet.
In May 2014, StreetShares raised a $1.2 million seed stage investment with investors including global microfinance company.
4. Fundbox Loans For Veterans
Fundbox is a financial services platform based in San Francisco that offers credit and payment solutions to small businesses.
Founded in 2013, the company uses big data analytics, engineering, and predictive modeling to help optimize cash flow for small businesses.
Fundbox’s primary offering is a revolving line of credit where companies can apply and get a decision in minutes.
The credit is intended for use by small businesses in the business-to-business space seeking to optimize cash flow and continue to successfully run their businesses while waiting for accounts receivable invoices to be paid.
This enhancement in cash flow is intended to help companies maintain consistent operations and make investments such as new equipment or payroll.
5. On Deck Capital Business Loan
On Deck Capital is a global online small business lending company that is listed in the United States. It has offices in New York; Arlington, Virginia; and Denver, Colorado in the United States; Toronto and Montreal in Canada; and Sydney in Australia.
OnDeck uses proprietary software to aggregate data about a business’ operations, which is processed by an algorithm that determines loan eligibility.
In 2007, the company introduced its short-term loan product and made its first loan, and by early 2010, the company had made over $50M in loans to small businesses in the U.S.
6. Funding Circle Business Loan
Funding Circle is a peer-to-peer lending marketplace that allows the public to lend money directly to small and medium-sized businesses.
Through this exchange businesses access lower costs of financing than they would get at a bank and the public are able to become lenders and in doing so make a return on their capital.
As of September 2019, Funding Circle has facilitated over £8 billion in loans to small business veterans and medium-sized firms.
7. Kabbage Loan
Kabbage, Inc. is an online financial technology company based in Atlanta, Georgia. The company provides funding directly to small businesses and consumers through an automated lending platform.
8. Lendio Veteran Business Loan
Utah-based Lendio (formerly Funding Universe), founded in 2011 by Brock Blake and Trent Miskin, is a free online loan marketplace in the U.S. targeting small business owners.
Lendio offers a variety of loans for small business owners, including:
– Business line of credit
Short Term loan
Merchant cash advance
Business Term loan
Business credit card
Accounts Receivable financing
Business Acquisition loan….
9. Biz2credit Loan
Biz2Credit is an online credit resource offering finance to small businesses. The company provides direct funding to small businesses that have been in business for at least six months.
The company is known for its financing products, educational resources for business such as the BizAnalyzer and research that it publishes periodically, including the Small Business Lending Index.
10. Fundera Inc Business Loan
Fundera is a marketplace for small business financial solutions. They provide expert insights and tailored options—from loans to credit cards to bank accounts—so business owners can shop and compare financial choices they often don’t know they have.
11. Bluevine Loans For Veterans
BlueVine (formally BlueVine Capital), is a Redwood City, California-based fintech company that provides online business banking and financing to small- and medium-sized businesses.
12. Upstart Business Loan
Upstart is an AI lending platform that partners with banks and credit unions to provide consumer loans using non-traditional variables, such as education and employment, to predict creditworthiness.
13. WellsFargo Loan
Wellsfargo is an online money lending company in United States of America that offers a quick Personal loan, student loan, mortgage loan, Auto loan, and much more which you can apply and borrow from $3000 to $100,000 with a flexible repayment plan of 12 to 84 months.
14. Prosper Marketplace Loan
Prosper Marketplace, Inc. is a San Francisco, California-based company in the peer-to-peer lending industry.
Prosper Funding LLC, one of its subsidiaries, operates Prosper.com, a website where individuals can either invest in personal loans or request to borrow money.
15. Lending Club Loan
LendingClub is a peer-to-peer lending company, headquartered in San Francisco, California.
It was the first peer-to-peer lender to register its offerings as securities with the Securities and Exchange Commission (SEC), and to offer loan trading on a secondary market.
At its height, LendingClub was the world’s largest peer-to-peer lending platform. The company claims that $15.98 billion in loans had been originated through its platform up to December 31, 2015.