DIR's Supplier Diversity Information Resource Guide 20, Jan 2012 | Page 26

COPYRIGHT 2012, DIVERSITY
Finance, Investment and Procurement Programs INFORMATION RESOURCES, MINNEAPOLIS, MN

ERISA regulations must also secure an exemption from the Department of Labor regulations prohibiting
certain loan transactions.
Effective December 22, 2000, a maximum loan amount of $2 million has been established for 7(a) loans.
However, the maximum dollar amount the SBA can guaranty is generally $1 million. Small loans carry a
maximum guaranty of 85 percent. Loans are considered small if the gross loan amount is $150,000 or less. For
loans greater than $150,000, the maximum guaranty is 75 percent.
SBA can assist qualified employee trusts that meet the requirements and conditions for an Employee Stock
Ownership Plan (ESOP) as prescribed in all applicable IRS, Treasury, and Department of Labor regulations. The
small business must provide all the funds needed to collaterize and repay the loan. A qualified employee
trust may:
• re-lend proceeds to the employer by purchasing qualified employer securities, or
• purchase a controlling interest in the employer.
www.sba.gov/financing/loanprog/trusts.html
ore

m
Pollution Control Loan Program
for
om
Pollution Control Loans are 7(a) loans with a special purpose of pollution control. The program is designed to
s.c
rce
ou
provide financing to eligible small businesses for the planning, design, or installation of a pollution scontrol
e
oR
facility. This facility must prevent, reduce, abate, or control any form of pollution, including recycling. This
Inf
ty
rsi
v
program follows the 7(a) guidelines with the following exception. Use of proceeds must be efor fixed-assets
Di
o@
only.
Inf
ct
nta
www.sba.gov/financing/loanprog/pollution.html
co
s
lea

e

P
N.
,M

CAPLines Loan Program
is
CAPLines is the umbrella program under which the SBA helps smalleapol
businesses meet their short-term and
inn
cyclical working capital needs. A CAPLines loan, Except the SmallMAsset-Based Line, can be for any dollar
,
es
rc
amount that does not exceed SBA's limit. (See the 7(a) Loan uprogram for more information on SBA's Basic
so
Re
Requirements.)
on
ati
There are five short-term working-capital loan programs for small businesses under the CAPLines umbrella:
rm
fo
ty
rsi
ive

In

D
SEASONAL LINE: These are advances against anticipated inventory and accounts receivable help during peak
an
r th
seasons when businesses experiencehe
seasonal sales fluctuations. Can be revolving or non-revolving.
t
e
ny

ty

nti

o

CONTRACT LINE: Finances F?RF?&V7B?&?"?B?FW&??6?7B76?6?FVBv?F?W&f?&??r76?v?&?P??'???@???6??G&7B?2??6?&R&Wf??f??r?"????&Wf??f??r??'0????V@?V0??@?%T??DU%2??S?W"??R&R6???vV?W&?6??G&7F?"?"'V??FW"6??7G'V7F??r?"&V??fF??r6???W&6??? ??`?W ?F ?&W6?FV?F?????'V??F??w2?F??26?f???6RF?&V7B?&?"??B?FW&??6?7G2?F?R'V??F??r&??V7B6W'fW22F?P???6???FW&???B???26?&R&Wf??f??r?"????&Wf??f??r??????F???6?&??P?25D?D$B54UB?$4TB??S?F??2?2?76WB?&6VB&Wf??f??r??R?b7&VF?Bf?"'W6??W76W2V?&?RF??VW@?????F???7&VF?B7F?F&G276?6?FVBv?F????r?FW&?7&VF?B??B&?f?FW2f???6??rf?"7?6?6?w&?wF??&V7W'&??r?B?? ?6??'B?FW&??VVG2?&W??V?B6??W2g&??6??fW'F??r6??'B?FW&?76WG2??F?66??v??6??2&V?GFVBF?F?P??V?FW"?'W6??W76W26??F??V??G&rg&??F??2??R?b7&VF?B?&6VB??W??7F??r76WG2??B&W?2F?V?"66??7?6?RF?7FFW2?F??2??RvV?W&???2W6VB'?'W6??W76W2F?B&?f?FR7&VF?BF??F?W"'W6??W76W2?&V6W6P?F?W6R???2&WV?&R6??F??V?6W'f?6??r?B????F?&??r?b6???FW&??F?R?V?FW"??6?&vRFF?F????fVW2??4???54UB?$4TB??S?F??2?2?76WB?&6VB&Wf??f??r??R?b7&VF?B?bWF?C#???B?W&FW2??R?7F?F&B76WB?&6VB??RW?6WBF?B6??R?bF?R7G&?7FW"6W'f?6??r&WV?&V?V?G2&Rv?fVB?&?f?F??rF?P?'W6??W726?6??6?7FV?F?6??r&W??V?B&??G?g&??66?f??rf?"F?RgV????V?B??W?6WBF?R6???76WB?&6VB??R?4??R???2f????r4$w2????V??????V?G2?F?R6???76WB??4T5D??? ??????#"7W?W"F?fW'6?G???f?&?F???&W6?W&6RwV?FP??4??DT?B??$RU??$TC?4TRuur?D?dU%4?E???d?$U4?U$4U2?4??d?"?DU5BdU%4???????F????&???`??