SBA Loan Programs

The SBA offers many attractive loans to assist small business. WIDC/Frontier CDC provides access to all of the SBA programs, following is a list of the SBA Loans programs most often used by Wyoming businesses.

SBA 504 The SBA 504 loan program, one of the most utilized small business loan programs in Wyoming, provides long-term, fixed rate real estate and fixed asset financing. The maximum loan amount for a 504 loan has been increased from 1.3 million to 2.0 million with manufacturing loan amounts at 4.0 million. New legislation funds the 504 loan program for a three-year period, rather than the annual renewal which was required in the past.

SBA 7(a) Loan Guaranty Section 7(a) of the Small Business Act authorizes the SBA to guarantee loans to small businesses that cannot obtain financing on reasonable terms through normal lending channels. The most significant change to the 7(a) General Business Loan Guaranty program is a raise in the guarantee percentage to 80% for loans of $100,000 or less. The upper limit of this loan program was increased to $1,000,000, with the SBA guarantee portion of 75%. Other streamlining issues were also included in the new legislation which will aid SBA lenders in taking full advantage of the various SBA programs. Working in participation with the local banking community, Frontier CDC is the statewide provider of SBA 504 loans in Wyoming. Loan proceeds may not be used for inventory, franchise fees, or operations.

LowDoc Loan The purpose of this SBA loan program is to reduce the paperwork involved in loan requests of $100,000 or less. Under this program, the SBA uses a one-page application and relies on the strength of the individual applicant’s character and credit history. The applicant must first satisfy all of the commercial lending institutions requirements. The lender may then request a LowDoc guaranty. The LowDoc Loan is an SBA 7(a) Loan Program

Export Working Capital Program (EWCP) Under the EWCP, the SBA guarantees up to 75% of a secured loan (80% on loans of $100,00 or less) or $750,000 whichever is less. Loan maturities may be for up to three years with annual renewals. Loans can be for single or multiple export sales and can be extended for pre-shipment working capital and post-shipment exposure coverage or a combination of the two proceeds can only be used to finance export transactions. EWCP is an SBA 7(a) Loan Program developed to assist export-ready small businesses.

CAPLine CAPLines finances small businesses’ short-term, cyclical working-capital needs. Under CAPLines, there are five distinct short-term working-capital loans: the Seasonal Contractor's, Builder’s, Standard Asset-Based, and Small Asset-Based lines. For the most part, the SBA regulations governing the 7(a) Program also govern this program. Under CAPLines, SBA generally can guarantee up to $750,000.

Other Federal Loan Programs

U.S. Department of Agriculture/Rural Development Intermediary Relending Program
This loan program maybe used for the purchase of equipment, land, buildings or working capital. Maximum loan amount is $150,000; minimum loan amount is $25,000. Terms of the loan will be matched to the use of the funds. Interest rates are set on a case-by-case basis, below market rate. Applicants must demonstrate the ability to repay the loan, meet normal collateral standards, and demonstrate new job creation or expanded employment opportunities. Companies located inside the city limits of Cheyenne, Casper and Laramie are not eligible under the "rural" definition of this Program.

This is an equal opportunity program. Discrimination is prohibited by Federal law. Complaints of discrimination may be filed with the Secretary of Agriculture, Washington, DC 20250.

State of Wyoming

Wyoming Business Council Partnership Challenge Loan Program
This program provides direct loans and loan guarantees to ventures that use state resources, employ state people or otherwise add value to Wyoming goods. Service businesses generally are not eligible. The loan cannot exceed 60% of the total project cost, 50% for start-up companies. The borrower must contribute at least 20% equity. Funds are loaned at negotiable terms and interest rates, and not exceed ten years.