As many small business owners and entrepreneurs are aware, initial funding and startup support provides critical money that allows a business to establish itself and begin bringing in customers. Many times, the funding secured helps carry a business through its first year or two until it has built a consumer awareness of its products and services as well as connected with the first critical customers.
A number of funding sources exist for small businesses, with the federal Small Business Administration being one such resource. The SBA has been established as a government financial catalyst to help businesses expand and create jobs via government loans, grants and other cash flow opportunities.
Similar to home mortgages, the SBA provides small business loans through established lenders and banks. The federal government essentially guarantees the loan provided, so banks and lenders are more willing to finance new businesses. Applicants have to fill out application paperwork, provide a business plan, and meet information requirements for lenders to properly review a loan request. When all the requirements are met, the lender will then approve the SBA loan and payments terms, with the loan itself underwritten by the SBA and the federal government.
The SBA does not provide grants for starting a business. That said, a business could seek federal grant funding by providing services or products to federal programs using grant funds or awarding them to sub-recipients. This funding can be transferred either through a non-profit grant or through a contract (for businesses contracts are far more common as grants need to essentially be reimbursements for costs spent by non-profit organizations).
The SBA does participate in venture capital funding through its New Markets Venture Capital Companies program. Through a government-private side partnership, the SBA targets low income regions that need new business startups to create new job opportunities.
UnsecuredBizLoan.com can help guide prospective business entrepreneurs towards critical financing and startup cost. We can help owners both with securing SBA loans as well as non-government forms of business financing. For more information, our website provides detailed information on how our programs can fill in that essential money gap so critical for business establishment.
To apply for funding for your small business, use the form on the right to begin the application process.