SBA Handicapped Assistance Loans

The Handicapped Assistance Loans (HAL) are SBA loans granted to small businesses owned by disabled people and non-profit organizations employing handicapped individuals.

Types of Loan Program


HAL is categorized into two groups, namely:

A HAL-1 is a small business finance aid intended for public or private non-profit organizations wherein at least 75% of the direct work is performed by its handicapped employees.

A HAL-2 is a loan program available to small businesses that are independently owned by persons with permanent physical, mental, or emotional disabilities.

Amount, Interest Rate, and Maturity of Loan

Eligible small businesses can get up to $150,000 with the direct SBA loan programs. For loans obtained through a private lending institution guaranteed by the federal government agency, a borrower can be granted up to a maximum of $750,000. Direct loans accumulate 3% of interest annually, while guaranteed loans are arranged between the lender and borrower, in conformance with SBA's interest rate guidelines. The maturity for real estate and construction loans is limited to 25 years, while the term for working capital loans is up to 7 years.