SBA Programs

SBA

Today we will be discussing the various SBA programs. The Small business administration was established in 1953 with the mission of helping the US economy by helping small businesses succeed. This article will give a basic overview of the various programs and how they are applied.

Hubzone: This SBA program, which was established in 1998, is designed to help small businesses who operate in historically underutilized business zones, with the goal of revitalizing those areas. This is part of a serious of programs designed to funnel money into parts of America that have not adjusted well to the current economic realities and that have been more or less abandoned.

Loan Guarantee Program: Designed to help small businesses start up their operations or grow their existing operations. The SBA guarantees loans that originate from banks and other nontraditional lenders. The loans are not funded directly by the small business administration itself, but rather they guarantee them if you do not pay your loan payments. This represents a much smaller amount of risk to the lending institutions, and as such they are much more willing to lend money to small companies that are using this program. This is one of the primary functions of the organization as they have helped tens of thousands of companies gain their necessary funding through this program.

SBA Micro Loan Program: Designed to give money to very small startups that meet the criteria of various nonprofit organizations that fund these very small loans (typically under $40,000). These loans are designed for companies that cannot receive regular bank loans and that provide services that contribute positively in the areas where they are established.
Business Plan Assistance: This is a less known service that has been provided for quite some time now. You can have an agent from your local chapter assigned to your company to sit down with you and help you create a formal business plan. Not only is having a formalized plan good for the success of your company, it is also necessary to get approved for most loans.

These are just a few of the SBA programs designed to help them accomplish their mission of strengthening the economy. As you can see the aim of most of these programs is to funnel funding into certain areas that aren’t currently in good condition. They also try to help the economy in general by helping small businesses get funding from large banks, a task that has grown increasingly difficult in recent years as banks consolidate more.

For more information, go to SBA at http://www.unsecuredbizloan.com

SBA Programs was last modified: September 30th, 2011 by Amit Kraidman
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3 Responses to SBA Programs

  1. Bayle says:

    At last! Someone who understands! Thanks for posntig!

  2. India says:

    Kudos! What a neat way of tnhiking about it.