SBA Loans Report Small Business Administration (SBA) Loans The SBA has various loan programs to assist small businesses. SBA is primarily a guarantor of loans made by private and other institutions and does not offer loans directly to small businesses. Richardson-area banks that offer SBA-guaranteed loans: SBA 504 Loan Programs 504 loans provide long-term, fixed-rate financing to small businesses to acquire real estate, machinery or equipment for expansion or modernization. Typically, a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100% SBA-guaranteed debenture) with a junior lien covering up to 40% of the total cost, and a contribution of at least 10% equity from the borrower. SBA Patriot Express Initiative Patriot Express Pilot Loan Initiative is for veterans and members of the military community wanting to establish or expand small businesses. Eligible military community members include: Veterans Service-disabled veterans Active-duty service members eligible for the military’s Transition Assistance Program Reservists and National Guard members Current spouses of any of the above Widowed spouse of a service member or veteran who died during service or of a service-connected disability SBA and its resource partners are focusing additional efforts on counseling and training to augment this loan initiative.