Leasing, Factoring, and Government Programs 167 · · · · · · some exceptions, depending on the service being provided; for exam- ple, legal and accounting services generally will not qualify for SBA loans Wholesale businesses employing fewer than 500 employees Retailers with yearly revenues not exceeding $7 million, with some exceptions depending on the type of retail operation General building and heavy construction contractors with yearly in- comes not exceeding $33.5 million Special trade construction businesses with annual receipts not exceed- ing $14 million Computer programming, data processing, and systems design firms with annual receipts not exceeding $25 million Manufacturing businesses employing between 750 and 1,500 people, depending on the type of product manufactured Although the SBA requirements may seem staggering to the owners of some start-ups, they should not scare away potential applicants. The SBA is one of the most popular sources of early-stage funding. For example, most com- mercial lenders won't approve a $50,000 loan for a start-up business. However, if the applicant secures an SBA loan guaranty, which provides the bank with a federal guaranty for repayment, the banker will be able to approve the loan. 7(a) Loan Guaranties You can use a 7(a) loan to: · Purchase land or buildings, including both new construction and the expansion or conversion of existing facilities · Purchase equipment, machinery, furniture, fixtures, supplies, or ma- terials · Provide long-term working capital, including the payment of accounts payable and/or the purchase of inventory · Cover short-term working capital needs, including seasonal financing, contract performance, construction financing, and export production · Finance inventory and receivables under special conditions · Refinance existing business indebtedness that is not already structured with reasonable terms and conditions · Purchase an existing business American Management Association www.amanet.org