Government guaranteed lending to franchisees and other small businesses is crucial to the growth and sustainability of our communities.
The Government Guaranteed Lending division of The Bancorp Bank, a National Preferred Lender, comprises a full-service small to middle-market commercial loan originations group specializing in business loans and franchise financing through programs available from the U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA).
Our team focusing on government guaranteed lending has more than 50 years of combined experience in the field.
SBA 7(a) Loan Program
The SBA 7(a) Loan Program is designed for start-up and existing small businesses and is delivered through commercial lending institutions such as The Bancorp Bank. It provides guaranteed financing for a variety of general business purposes, including working capital, machinery and equipment, furniture and fixtures, land and building (including purchase, renovation and new construction), leasehold improvements and, under special conditions, debt refinancing.
An applicant’s eligibility for funding under the 7(a) Loan Program is primarily governed by established standard size criteria, based on either sales volume or the number of employees, depending upon the applicant’s industry. Ninety-eight percent of U.S. businesses qualify under these guidelines, subject to their credit worthiness and their ability to repay the loan.
SBA 504 Program
The SBA 504 Loan Program provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings. It is designed for small businesses requiring “brick and mortar” financing and is delivered by Certified Development Companies (CDCs).
CDCs work with the SBA and private-sector lenders to provide financing to small businesses through the 504 Loan Program. Typically, 504 projects include a loan secured from a private sector lender such as The Bancorp Bank covering up to 50 percent of the project cost, a loan secured from a CDC and the SBA covering up to 40 percent of the total cost, and a contribution from the borrower of at least 10 percent equity.
USDA Business and Industry Loans
The USDA Business and Industry (B&I) Loan Program is designed to improve, develop or finance business, industry and employment and to improve the economic and environmental climate in rural communities.
Borrowers may be a cooperative organization, corporation, partnership or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a federal or state reservation or another federally recognized tribal group; a public body; or an individual.
The USDA B&I program bolsters the existing private credit structure by guaranteeing loans that will provide lasting community benefits.
For more information, contact:
Senior Vice President
Government Guaranteed Lending