Small Business Loans

The Small Business Administration (SBA) is a federal government agency that administers loan guaranty programs and other support services to encourage growth and development of small businesses. Loan Guarantee Program is a percentage of the loan is guaranteed by the SBA, enabling lenders to accept greater risk on small businesses that may not currently be financially strong enough to obtain a conventional small business bank loan.

There are two significant features that an SBA (Small Business Administration) programs offer. You will get low down payments, and longer term financing. This will help you as a small business owner get started. Small business loans are for business purposes such as owner-occupied commercial real estate, business acquisitions and start-ups. This will help with franchise financing, working capital, improvements, renovations, inventory, equipment and debt refinancing.

All SBA loan programs lend to small businesses unable to secure financing on reasonable terms through normal lending channels. The loan programs are operated through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA. Most private lenders are familiar with SBA loan programs so interested applicants should contact their local lender for further information and assistance in the SBA loan application process.

If you’re looking to start a business you may wish to look into an SBA loan. Of course there are other options such as personal loans however typically with those types of loans you are accepting the financial risk, not necessarily a good idea if it is a risky startup.