Which SBA loan program would be the most beneficial to start or grow your business? Here's a primer on the loan options available. An independent agency of the federal government, the SBA does not loan money directly. It works to assist local banks or lenders to provide financing for small businesses. Some banks, including Union Bank, have preferred lender status with the SBA, which streamlines the application process.

The SBA backs several types of loans that you might pursue for your company, depending on your financial needs and the structure of your business. Small-business loans are generally designed to help your business not only thrive but succeed. They can also assist you in saving for your future.

Below is a review of SBA's guaranteed loan programs:

• 7 (a) Loan Program: This is one of the most popular loans backed by the SBA because it can be used to fund a wide range of business needs, including the purchase of equipment, franchises and more. With this program, small-business owners can apply for up to $750,000. To qualify for this loan you must adhere to the SBA guidelines for small business. To find out if your business is eligible and for information on the loan terms, speak with your banker or visit sba.gov/financialassistance.
   
• CDC/504 Loan Program: The 504 program provides funds for small-business owners to purchase assets, such as equipment or land. Generally, this loan is funded for up to 40 percent of the value of the asset by a bank or lender, with a second loan from a certified development company backed by the SBA. The loan amount is usually $1 million or more. To qualify for this loan, a business needs to have a net worth of $7 million or less and a net profit, after taxes, of $2.5 million or less. Also, the business has to occupy at least 51 percent of the space in the facility being purchased or at least 60 percent of the space in a new facility being built. Talk to your local banker or lender to find out more regarding loan terms and financing for this program.
   
• Microloan Program: Created to fund short-term loans, the microloan program offers small loans of up to $35,000 for working capital or to purchase inventory, equipment or other items. The program is specifically designed to support small businesses and not-for-profit child-care centers that might need small-scale financing. Loan terms can vary, depending on the loan amount, the lender, loan requirements and other financial factors. Refer to your lender or banker to keep you up-to-date on the loan terms and interest rates for this program.
   
• Disaster Assistance Loan Program: This program provides low-interest loans to replace or repair equipment, real estate, machinery and other items damaged or ruined in a disaster. The SBA can provide up to $2 million to support businesses with their disaster recovery.

Researching available SBA loans will help you select the right loan to set you and your business on the path to success.