Chico is a city located in the northern part of the U.S. state of California. It is the county seat of Butte County. The population of the city was 86,187 at the 2010 census. Chico is the most populous city in the Chico, California Metropolitan Statistical Area, which encompasses all of Butte County. The four-county region is known as the California North State.
The city of Chico was founded in 1860 by John Bidwell, a member of one of the first wagon trains to reach California in 1843. The city was named after the Greek word for "city", "chico".
The economy of Chico is based on a variety of factors. The city's proximity to California State University, Chico provides a steady stream of educated workers and entrepreneurs. The city is also home to a number of manufacturing and distribution companies. The agricultural sector is also important to the local economy, as the area around Chico is known for its production of rice and almonds.
Small businesses are a vital part of the economy in Chico. According to the Small Business Administration, small businesses make up 99.7% of all businesses in the city. The top industries for small businesses in Chico are health care, retail, and food and beverage.
Comparing SBA loan types in Chico
Three SBA programs come up most often for Chico, California businesses, and they do different jobs.
SBA 7(a) loan: program overview
Maximum loan
$5 million (sba.gov, fetched 2026-07-24)
What it funds
Working capital, equipment, owner-occupied commercial real estate, refinancing business debt, and business acquisition.
Who lends
Participating banks and non-bank lenders. The SBA guarantees a portion of the loan; it does not lend directly to borrowers.
Rate structure
Negotiated between lender and borrower, capped at the SBA maximum. Most 7(a) loans price off the WSJ prime rate plus a spread.
Personal guaranty
Required from every owner of 20% or more of the business (13 CFR 120.160(a)).
Program facts confirmed against sba.gov/funding-programs/loans/7a-loans on Jul 24, 2026. Confirm current fees and maximum rates with your lender before relying on them.
SBA 504 loan: program overview
Maximum loan
$5.5 million per the SBA-backed debenture (sba.gov, fetched 2026-07-24). Total project size can be larger because a bank funds the first mortgage alongside it.
What it funds
Major fixed assets: owner-occupied commercial real estate and long-life machinery and equipment. Not working capital or inventory.
Structure
A conventional first-mortgage lender, a Certified Development Company holding the SBA-backed second, and a borrower down payment.
Rate
The CDC portion is fixed for the full term and set at the monthly debenture sale.
Program facts confirmed against sba.gov/funding-programs/loans/504-loans on Jul 24, 2026.
SBA Express: program overview
What it is
A delivery method inside the 7(a) program. The lender uses its own forms and procedures and gets an accelerated SBA response, in exchange for a lower SBA guarantee percentage than Standard 7(a).
What it funds
The same uses as 7(a), including revolving lines of credit, which Standard 7(a) term loans do not offer.
Trade-off
Faster turnaround and lighter paperwork, against a smaller guaranteed portion, which some lenders price for.
Current SBA Express maximum loan size and guarantee percentage are set by SBA notice and change. Confirm them on sba.gov or with your lender; this site does not publish an unverified figure.
Small business loans available in Chico
An SBA 7(a) loan made to a Chico, California business is made by a participating lender, not by the SBA.
The lender underwrites it, sets the rate within the SBA maximum, and services it. What varies locally is
which lenders are active, not the program rules.