Have a question about opening an office in the US? Send them to my attention and we will answer them in this column.
We are a European company with a US branch; can we apply for an SBA business loan?
The person who will be answering this question is Robert H. Nelson, MA District Director, Small Business Administration (SBA). Mr. Nelson can be reached at (617) 565-5561
In some cases, foreign Companies can apply for an SBA loan, however, they do need to meet certain criteria as defined by our SOP 50 10 5 (D) which indicates the business must be located and operating primarily in the US, and is authorized to operate in the state or territory where they seek SBA financial assistance or makes a significant contribution to the US economy through the payment of taxes to the US or use of American products, material and labor. The proceeds of the loan must be used exclusively for the benefit of the domestic operations. The applicant must pledge collateral within the US sufficient to pay the loan in full at any time. Management must have operated the business for at least 1 year prior to the application, is expected to continue in place indefinitely, and have US citizenship or be a legal permanent resident.
Additionally, there are certain businesses that are restricted, as indicated in Appendix 1 of the SOP 50 10 5(D).
For more information and/or further details on SBA’s loan programs and eligibility, please visit the SBA website at www.sba.gov/ma or call a Massachusetts lender relations specialist at (617) 565-5560.
Dennis Warren is the Coalition president and can be reached at [email protected]
The information and ideas presented in this column are provided for informational purposes only.
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