Government Grants and Loans Available to Small Businesses Owners
What are the available government grants and small business loans that entrepreneurs can take advantage of to start a business or to address a particular business need? The answer for this query will be discussed in the succeeding paragraphs of this short yet insightful article. So we encourage you to read on.
What are Government Grants?
The US Government gives free government grants to a lot of Americans each year. These federal grants are actually monetary funds that individuals and business owners can use for financing.
The best thing about these government grants is that you never have to pay the state or the federal government back should you qualify to receive this special type of funding. Nevertheless, it’s important to understand that not all individuals and organizations can qualify.
The Catalog of Federal Domestic Assistance (https://www.cfda.gov/) offers a complete listing of all available Federal programs in different industries. Once approved for a grant, expenditures need to be audited, documented and submitted annually. Faiure to abide by the rules of government can result to penalties. The process of application can also take a long time so if you are in need of quick financial assistance, you may try to find help from other sources.
Government Loan Options
The Small Business Administration (SBA) has been created to assist small businesses in acquiring business start up Loans. However, you need to keep in mind that the SBA does not provide direct funding to qualified businesses. The SBA does back-up the start-up business loans so that business owners can get financing from lenders who are in partnership with the SBA.
Now what are the start-up business loan programs that are offered by the SBA? They are the following:
- America's Recovery Capital Loan Program (ARC) – The SBA's ARC program can provide as much as $35,000 in short term relief for small businesses that encounter financial hardship because of the economic crisis. Through this credit program businesses are given financial assistance to regain their profitability. But these loans will only be offered as long as funding is available or until September 30, 2010, whichever comes first.
- Certified Development Company (CDC), a 504 Loan Program - This credit option provides long-term and fixed rate financing deals to entrepreneurs. This credit program is especially intended to assist a business owner to acquire real estate assets or machinery or equipment for business expansion purposes.
- 7(a) Loan Guaranty Program – This primary loan program offers loans of up to $2,000,000 to entrepreneurs and small business owners.
- Micro loan Programs – These credit accounts offer business start up Loans of up to $35,000 to qualified entrepreneurs or businessmen. Through these credit accounts, business owners will be able to have sufficient financial resources to successfully build their dream businesses or to fund a special business project or concern. These loans are arranged through community based lenders which in turn offer credit lines to qualified borrowers.
Irish Taylor is a bussiness loan consultant with Startup Business Loans and has been providing consumers and business owners with startup business financing since 1992. For years she has helped people with credit and loan problems especially pertaining to business start up, SBA loans and Unsecured loans.
Copyright 2010.
Related Article: Borrowing Money To Build Your Business
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