Created in 1953, Congress and then-President Dwight Eisenhower created the U.S Small Business Administration. The SBA helps small businesses and venture capital investment firms obtain funding and support to help them grow and succeed. Since its inception, the SBA helped small businesses secure business financing to maintain viability.
Today, the SBA provides several types of loan programs to qualified small business owners, including the Microloan Program, the 7(a) Loan Program, the CDC/504 Loan Program and various Guaranteed Loan Programs known as “Debt Financing.”
Each of the loan programs available through the SBA serves specific functions. If you are looking for a small loan for a short-term basis, you may want to spend some time applying for the Microloan Program. However, if you are looking for a more long-term solution, you may want to target your efforts into applying for the CDC/504 Loan Program.
Understanding your financial business needs is an important step and allows you to spend any limited resources and time that small business owners have to If you are a small business owner in search of business financing, you may find the following information very useful.
1. The Microloan Program: Using specific intermediary lending institutions, this program offers small business owners and nonprofit daycare centers short-term loans.
2. 7(a) Loan Program: This is a popular type of loan used by small business owners ineligible for conventional business loans. Most lending institutions participate in this very popular program.
3. CDC/504 Program: This loan program is designed for businesses with long-term financial needs. The CDC/504 Program allows business owners to stimulate growth in their communities with fixed-rate loans.
4. Guaranteed Loan Programs: The SBA doesn’t actually make these types of business loans but helps guarantee them by promising to repay loans made to business owners in case of default.
As you can see, the SBA offers small business owners, including those previously ineligible for traditional business loans, several types of business financing options to help them grow and achieve success.
To apply for funding for your small business, use the form on the right to begin the application process.