As part of our commitment to the community, William Penn Bank has partnered with the SBA to help start, build, and grow local small businesses. This includes Small Business Administration loans that are government guaranteed including the 7(a) Loan program and the CDC/504 Loan program for small businesses that may not qualify for traditional loans for various reasons.
Basic uses for 7(a) loan proceeds include:
- To provide long-term working capital to use to pay operational expenses, accounts payable and/or to purchase inventory
- Short-term working capital needs, including seasonal financing, contract performance, construction financing and exporting
- Revolving funds based on the value of existing inventory and receivables, under special conditions
- To purchase equipment, machinery, furniture, fixtures, supplies or materials
- To purchase real estate, including land and buildings
- To construct a new building or renovate an existing building
- To establish a new business or assist in the acquisition, operation or expansion of an existing business
- To refinance existing business debt, under certain conditions
Certified Development Company (CDC)/504 Loans
A 504 loan can be used for:
- The purchase of land, including existing buildings
- The purchase of improvements, including grading, street improvements, utilities, parking lots and landscaping
- The construction of new facilities or modernizing, renovating or converting existing facilities
- The purchase of long-term machinery and equipment
Here are a couple of great videos that help explain what SBA is all about:
Contact your local branch for more information!
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