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Small Business Administration • <br /> 7(a) Loan Program <br /> (SBA 7(a)) <br /> "...to provide Minneapolis businesses with a source of federal government loan <br /> guarantees for working capital and fixed-asset needs." <br /> Who's Eligible: Industrial, commercial, Current Budget Not applicable <br /> and retail businesses located within <br /> Minneapolis <br /> Application Procedure: Application is Estimated Annual Production: <br /> made through the MCDA Business 4- 6 loans per year <br /> Finance Department. <br /> Contact Person: Russell Knighton, 673-5181, MCDA Business Finance Department <br /> Program Summary: The SBA 7(a) program enables banks and other financial <br /> institutions to make loans that they would otherwise be reluctant to approve. The <br /> program is for viable credit risks unable to obtain coventional financing at comparable <br /> rates and terms. <br /> SBA 7(a) guarantees 90% of the total bank loan up to $1 million. The smallest project is <br /> likely to be about $50,000; the average is about$200,000. Existing businesses can <br /> finance up to 90% of project costs; start-up businesses must provide 20 -30% of project <br /> costs as equity. <br /> -40- <br />