SBA Loans and Your Business
The SBA or Small Business Administration is a government organization created to primarily support small businesses in the country. Although the SBA does not directly provide monetary support, it does offer assistance for small businesses who are seeking approval from lenders.
Many lending companies work hand-in-hand with the SBA and if your loan application has been approved and guaranteed by the SBA, then you can enjoy lower interest rates and easier repayment terms. A Certified SBA Lender (CLP) can be a bank, a commercial lending company or a credit union.In this article, let’s take a closer look at what SBA loans are.
Available SBA Loan Programs
7(a) Loan Guaranty Program. This particular program is further divided into small categories: Export Loan Programs, Rural Lender Advantage Program, and Special Purpose Loans Program. This is the most flexible option for various financing purposes. Both start-up and established small businesses can apply for this particular program.
504 Loan Program. This method of financing is designed for small businesses in need of financing to acquire equipment or real estate for the expansion or enhancement of the business.
Microloan Program. As the term suggests, this SBA loan program offers short-term financing with funds up to $35,000.
Disaster Recovery Loans. If your business has been affected by a recent calamity in your area, you can apply for this type of loan. In fact, even consumers who do not own a small business may be eligible to get this form of assistance from the SBA.
Recovery Capital Loan Program. This program is designed to help small businesses that are facing financial crisis with funds up to $35,000.
Prepare for SBA Loan Application
To improve your chance of getting an approval, find out in advance which documents or paperwork you need to prepare. Here is a checklist (http://www.business.gov/financing/loans/sba-loans/sba-loan-application.html) of forms and documents required by the SBA.
See to it that you can submit an impressive and complete business plan. If you are not sure about the information that must be included in the business plan, ask help from a business attorney or a business consultant.
Get to know the different SBA loan programs available and see which one is best suited to your needs. It is important to request a reasonable loan amount and to be able to present in your loan proposal how you plan to utilize the funds.
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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