Whether you are in the beginning stages of getting your small business up and running, or have decided that it is time to expand your already established company, you will to get some form of financing in order to make these changes. Some people will have saved up money from their own personal savings, for the purpose of being able to put it into their endeavor. Other people will turn to friends and family members to make investments in their business. When these are not options, you can still get the financing that you need for your company. One way to do this is through a SBA loan.
A SBA loan is a loan that is made available through the SBA, or Small Business Administration. This is a government run agency that specializes in aiding small businesses through providing programs and money lending options. Although the agency does not directly lend the funds, it is able to make these types of loans available by guaranteeing them through private sector lenders, or through certain financial institutions, such as banks.
If you are wondering whether or not you are eligible to receive a loan from the small business administration, there are a few things to consider. A SBA loan is generally given out to those businesses that are looking to grow their company, and need financial backing in order to do it. The money that is lent can be used on things such as purchasing more machinery and equipment or hiring on new employees and workers.
Another possible qualifier for your company is if you work industry which is deemed to be beneficial to the local community in which it runs. Certain qualifications will allow you to get subsidized or guaranteed loans through a small business administration and in some cases there are even grant programs to assist your company. Make sure to ask your local small business administration agency if your company qualifies for one of these programs. By having a guarantee you will have a much greater likelihood of being accepted and receiving funding through one of the major banks. Large banks tend to lend to larger companies under most other circumstances.
The SBA helps small companies because one of the main goals of the administration is to provide assistance to small businesses so that they may be able to grow and become more successful at a faster rate than they would on their own, without the additional external help.