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Eligible borrowers:
Small businesses
Eligible systems:
PV (including grid-independent) and solar thermal systems,
plus many other renewable energy systems and efficiency
measures must have a positive effect on business cash flow
Loan Amount:
Up to $750,000
guaranty for 7(a) loan
Guaranty:
Can be 80% up to $100,000; 75% if greater than $100,000
For more Info:
(800) 8-ASK-SBA
www.sba.gov |
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The Small Business
Administration (SBA), an independent agency of the Executive
Branch of the Federal government, is charged with providing
advocacy, management, procurement, and financial assistance to
American small businesses.
SBA provides business
loans to eligible and creditworthy small businesses by
guaranteeing loans made by participating lenders. The guaranty
transfers the risk of borrower nonpayment, up to the amount of
the guaranty, from the tender to the SBA. Therefore,
businesses applying for an SBA loan are actually applying for
a commercial loan having an SBA guaranty.
Under this concept, when a
business applies to a lender for financing, the lender first
decides whether it can make the loan itself or if certain
aspects of the application require an SBA guaranty. The SBA
guaranty is available only to the lender. The government will
reimburse the lender for any loss, up to the percentage of
SBA's guaranty. Under this program, however, the borrower
remains obligated for the full amount due.
Lenders generally seek a
SBA guaranty after they have evaluated the credit merit of the
application and determined that a SBA guaranty is needed.
Through its guaranty, SBA can help tens of thousands of
businesses each year obtain financing that would otherwise not
he available.
A key concept of the 7(a)
guaranty loan program is that the loan actually comes from a
commercial lender not the government. The lender may be
unwilling to provide the loan even with the SBA guaranty, and
this is permissible. The agency does not make loans by itself.
It is important that applicants know the criteria and
requirements of lenders as well as hose of the SBA.
Information Provided by the U.S. Department of Energy
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