Small Business Administration: A Primer on Programs Page: 16 of 24
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Small Business Administration: A Primer on Programs
Export Working Capital Loans. Export Working Capital Loans are a joint program between the
SBA and the Export-Import Bank.
Export Express. The SBA's Export Express program guarantees loans for exporters to finance
business development activities such as participating in foreign trade shows, translating
brochures, and improving facilities.
International Trade Loans. International Trade Loans are available to small businesses that are
exporting goods and services, those that are planning to become exporters, and those adversely
affected by imports. Loan and guarantee maximums are the same as for the regular 7(a) loan
guarantee program, but under special circumstances the maximum guaranteed amount can be
Community Adjustment and Investment Program. The Community Adjustment and Investment
Program (CAIP) uses federal funds to pay the fees on 7(a) and 504 loans to businesses located in
communities that have been adversely affected by NAFTA.
Employee Trusts. The SBA will guarantee loans to Employee Stock Ownership Plans (ESOPs)
that are used either to lend money to the employer or to purchase control from the owner. ESOPs
must meet regulations established by the IRS, Department of the Treasury, and Department of
Labor. These are 7(a) loans.
Pollution Control. The SBA has a special 7(a) program for small businesses to purchase pollution
CAPLines. CAPLines are five special 7(a) programs designed to meet the requirements of small
businesses for short-term or cyclical working capital. The maximum term is five years.
SBA Lender Programs
The SBA has programs for experienced 7(a) lenders that provide faster processing to borrowers.
Speed is achieved because the SBA lets the lender do more of the work with less SBA review.
The programs allow the SBA to guarantee more loans with fewer employees.
Certified Lenders Program
In the certified lenders program (CLP), the SBA's goal is to reach a decision on the guarantee
within three business days. A certified lender can review an application for an SBA-guaranteed
loan and process much, but not all, of the paperwork. The SBA does a credit and eligibility
review instead of a complete verification of the data.
Preferred Lenders Program
In the preferred lenders program (PLP), the SBA delegates loan approval, closing, and most
servicing and liquidation authority and responsibility to these selected lenders. The SBA
continues to check loan eligibility. Since the SBA does not review individual loan applications,
borrowers can receive funding in a matter of days.
Congressional Research Service
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Small Business Administration: A Primer on Programs, report, June 22, 2011; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc805667/m1/16/: accessed April 24, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.