In the world of small business, it is a known that certain steps in forming and running your company will require financing. If you do not have the money on hand, which most people do not, you will have to look to outside sources of funding for your business’s financial needs. There are all kinds of money lending resources that are available to you, and the specific needs of your company. One option that you have when running a small business is to apply for a SBA loan.
You can get a SBA loan through the SBA, which is a government run agency called the Small Business Administration. This agency specializes in helping out people who run small businesses to be able to run their companies better, and get the most benefit out of them. It does this by providing programs that help to educate business men and women, and by making loans available to those who are wishing to expand their companies. Although the small business administration does not directly lend the money, it guarantees loans through private sector lenders and various financial institutions. A notable exception to this is the small business administration’s disaster relief program. In this instance they work as a direct lender to help local individuals and companies pay for disaster relief efforts. This has been very helpful in assisting communities across America in getting back on their feet and being able to get back to work.
Those who are eligible for an SBA loan, are those that are looking to grow their already established business, as opposed to those who are just starting up. Those who are in the beginning stages of creating their company have better luck looking to angel investors, private sector lenders, or friends and family members the seed money that they need to get it up and off the ground. The loans that the SBA generally gives out are typically used for things such as additional machinery and equipment, or for hiring on and employing new workers. This is because the main goal of the administration is to aid in the growth of small businesses, and to have them become more successful at a faster rate in which they would on their own. his helps them accomplish their mission of strengthening America by strengthening the small business community. A mission which they have seen great success in since their inception in 1953.