There are many different types of SBA loans available to you, not just the 7a loan guarantee program. We’ll be discussing some of the broad categories of loans they provide, in today’s article.
Loans for businesses that work in underprivileged areas, and loans for minority run businesses: The goal for all these programs is to funnel money into underprivileged and neglected neighborhoods and individuals. The goal is to help bring them out of poverty by providing them the framework they need to succeed. This includes such programs as the emerging 200 program and the 504 loan program.
Disaster recovery loans and services: After a natural disaster, getting businesses back on track is very important. The Small Business Administration takes a direct role in this in two ways. They provide loans to help companies and individuals to rebuild their property, and also to help them get up and running again as soon as possible.
Also, they provide loans to businesses to help them pay for their operating costs until they have customers again. In addition to this, they also run field offices in the disaster-struck areas designed to provide equipment and supplies to critical businesses.
Finally, we have all of the various loan guarantee programs that have made the Small Business Administration a major part of how small businesses function in America. Private lenders directly finance these SBA loans, but the Small Business Administration guarantees them in case of default. An example of this would be the 7a program, which is an all-purpose program to bolster small businesses.