A business startup lives and breathes on initial financing which allows exponential growth when the funding is in place. However, not everyone has the financial resources in cold, hard cash or venture capital immediately available. Many a business has instead relied on the federal government for help. The federal government, through the Small Business Administration, provides SBA loans to qualified small businesses. Similar to home mortgages, these loans are supported through local banks and lenders that are coordinated with the SBA. When the loans are approved, the SBA guarantees the loan as the underwriter.
To apply for an SBA loan, an applicant needs to first become familiar with how the SBA loan program works. A couple of different loans exist, and for startups the big three are the Basic 7(a) Loan, the Microloan, and the Patriot
Express Pilot Loan.
The Basic 7(a) loan is part of a targeted SBA financing program, and an applicant works with local bank or lender to get approved. Applicants are in export, operating rural areas or operate in underserved areas.
The Microloan is the most common of the SBA loans and provides a smaller amount of funds for very small business. Funds can be as much as $35,000 but are usually closer to under $15,000. The payment periods tend to be shorter as well. Loan monies can be used for capital, inventory, equipment or machinery. The funds can’t be used to offset other debts or to buy real property (i.e. land or a building). Some collateral form will usually be required from approved borrowers to secure the loan.
The Patriot Express loan is targeted specifically to military veterans, helping them start small businesses. Applicants enjoy an expedited loan application review as well. Veterans, disabled vets, active-duty members, reserves, military spouses and widows of military spouses are eligible to apply. Most business expenses are allowed for loan use.
UnsecuredBizLoans.com can help applicants navigate the SBA loan programs and the various requirements for an approved loan. The process is not easy, so having an expert on one’s side can help tremendously. We are well-versed in how the SBA financing programs operate, and our website provides more information on our services and customer benefits.
To apply for funding for your small business, use the form on the right to begin the application process.