For qualified new and small firms that cannot obtain long-term financing on reasonable terms from banks or other financial institutions, the SBA offers a basic loan guarantee program. Through this program, the SBA can guarantee up to $750,000 (representing 70 to 90 percent of the loan value) at an interest rate not to exceed 2.75 percent more than the prime lending rate. Maturities on these loans can extend up to 10 years for working capital loans and 25 years for fixed asset loans. While the SBA’s primary function is to guarantee loans made to new and small businesses by private financial institutions (such as banks), the SBA offers direct loan programs as well. The SBA’s Certified Development Company Loan Program provides long-term, fixed-rate capital funding to small businesses that use the funds to purchase real estate, machinery, or equipment for expansion or modernization. Private, nonprofit corporations called certified development companies offer these loans to contribute to communities’ or regions’ economic development. The SBA funds the loans via a 100 percent SBA-guaranteed debenture and a bank generally secures the loans. SBA loans require an investment of at least 10 percent owner equity. The SBA’s Microloan Loan Program provides up to $35,000 in short-term loans to small businesses to fund working capital purchases. Through this program the SBA makes or guarantees a loan to a bank, which then makes the microloan to the firm. The bank also provides the fledgling firm with management and technical assistance.