SBA PREFERRED LENDERS

Dozens of banks in the metro area have experience with the SBA loan program. The most active and expert lenders qualify for the SBA’s Preferred Lender Program ( SBA Express Program (**), which offer expedited approvals. Following are preferred and express lenders as of June 2021. MMAC Members in Bold Associated Bank * **

Brueggeman

Andritsch wisconsintechnologycouncil.com

The Tech Council Innovation Network is a community-based economic development organization dedicated to fostering innovation. The network is operated by the Wisconsin Technology Council, an independent statewide board with representatives from technology companies, venture capital firms, educational and research institutions and government.

Loans & Loan Guarantees

Most businesses finance their operations and expansions through business loans and lines of credit. Revolving lines of credit can range from $5,000 to $1 million and typically feature a variable interest rate that is tied to the prime rate. They are often collateralized with real estate, accounts receivable, inventory or fixed assets. Larger and riskier loans can be secured with loan guarantees from a government agency. The loan guarantee allows lending institutions to take on additional risk, because the government agrees to repay the lender if the business defaults. The U.S. Small Business Administration (SBA) guarantees between 30 and 40 percent of all long-term business loans nationwide.

SBA Programs

NOTE: SBA Coronavirus relief programs can be found at sba.gov/relief.

Debt Financing

SBA does not make direct loans to small businesses. When a business applies for an SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements with an SBA guaranty. SBA-guaranteed loans may not be made to a small business if the borrower has access to other reasonable financing. There are around 200 banks, credit unions, Certified Development Companies (CDCs) and other lenders making SBA-guaranteed loans in Wisconsin. See the sidebar on the left for more information about participating lenders.

SBA 7(a) Program Loans

Guarantees 85 percent of loan amounts up to $150,000 and 75 percent of loan amounts greater than $150,000. Export loan guarantees are set at 90 percent. Loans can be used for working capital, land, building, machinery and equipment purchases, and export projects. The SBA 7(a) Express Program provides a 50 percent guarantee for loans up to $500,000. Veterans and their spouses are eligible for a waiver of the upfront guaranty fee on SBA Express loans.

SBA 504 Loan Program

Under the program, the SBA makes longterm, fixed-rate financing available to small businesses through a CDC that provides financing by issuing SBAguaranteed debentures sold to private investors. The borrower typically must invest 10 percent in the project, the bank provides 50 percent of the financing and the CDC offers up to 40 percent. The maximum debenture is $5 million ($5.5 million for manufacturers and some loans related to energy consumption or renewable energy). Two SBA 504 lenders operate statewide: WBD (wbd.org) and Business Lending Partners (blp504.org).

SBA Micro-Loan Program

Micro loans are designed for individuals seeking a loan for a new or growing small business. The maximum loan amount is $50,000 with a maximum repayment term of seven years at a fixed interest rate. Loan proceeds can be used for supplies, furniture, fixtures, inventory, machinery, equipment or working capital.

SBA-Approved Micro-Lenders

First American Capital Corp., Subsidiary of the American Indian Chamber of Commerce of Wisconsin: 10710 W. Scharles Ave., Hales Corners. Telephone: 414/604-2044. Fax: 414/604-2070. faccloans.com

Wisconsin Women’s Business Initiative Corp. (WWBIC): Assists individuals interested in starting, strengthening or expanding businesses by providing direct lending, quality business and financial capability education and one-on-one technical business assistance. Services are open to anyone, but primarily women, minorities, veterans and people of lower wealth. 1533 N. Rivercenter Drive, Milwaukee. 414/263-5450. wwbic.com

Small Business Innovation Research Program

The Small Business Innovation Research Program is a non-equity funding source for innovative technologies that are considered high-risk, high-payoff initiatives. Companies can receive up to $225,000 for feasibility studies, which typically last six to nine months; and $1.5 million for prototype development, which lasts up to 24 months. Applicants must secure private-sector financing, licensing or strategic partnerships to commercialize the technology.

Small Business Innovation Research Program: More than $2.5 billion in funding is available through Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These non-equity funding sources are for small businesses with innovative technologies that are considered high-risk, high-payoff initiatives. sbir.gov

The Center for Technology Commercialization

– SBIR/STTR Program Assistance: The Center for Technology Commercialization (CTC) is housed within University of WisconsinExtension’s Division for Business and Entrepreneurship. CTC provides a range of SBIR/STTR assistance programs including informal and formal reviews, training sessions and follow-on match funding for successful SBIR/STTR awards. The center has helped Wisconsin companies secure more than $170 million in federal SBIR/STTR and other funding since 2005. 608/263-0398. wisconsinctc.org and wisconsinbir.org

Surety Bond Guarantees

The SBA’s Surety Bond Guarantee Program helps small business contractors who cannot obtain surety bonds through regular commercial channels. SBA can guarantee bonds for contracts up to $5 million and up to $10 million on federal contracts.

Venture Capital Program

SBA’s Small Business Investment Company (SBIC) Program is a public-private