Requirements for SBA Handicapped Assistance Loans

SBA loans provide access to capital needed by businesses in order to be competitive and grow.  The SBA or U.S. Small Business Administration formerly offered handicapped assistance loan (HAL) programs for businesses that were owned by or employed handicapped persons. These programs were moved to the traditional SBA loan guarantee programs, the 7(a) and 504 programs.

Role of the SBA

The SBA does not provide money directly to businesses, except in the case of a natural disaster such as hurricane, flood or tornadoes. The SBA works with a lender's network or banks and other financial lending institutions to provide loans to small businesses, based on SBA guidelines and the lender's requirements. 

Funding Opportunities for Handicapped Assistance

The SBA's 7(a) and 504 loan programs provide assistance for any small business, regardless of the physical status of the applicant or the applicant's employees. A business would need to consult with a participating lender to determine their eligibility for the loan guarantees. Both the SBA and the lender participating in the program set the loan guarantees.

A small business that seeks additional assistance based on handicapped status may also seek non- profit organizations and government agencies that provide grants and loans. You can inquire with your local SBA office, or any other agency, about the availability of any similar assistance programs for handicapped businesses. Also, you can seek advice from a business development specialist or other professional that specializes in funding for small businesses.