Should I get an SBA Loan?

SBA Loan

The Small Business Administration (SBA) exists to benefit small business owners and entrepreneurs who are trying to make their businesses a success. This agency can provide many types of assistance of interest to small business owners, training, mentoring and general help with licensing, permits and funding.

Many people are able to locate a loan or grant by seeking advice from their local SBA office or the extensive online website.

Should you get a loan with the SBA? Actually, the SBA does not make direct loans, but they do have a vast roster of approved lenders nationwide that make advantageous low-interest loans to small business owners, entrepreneurs, veterans and minority business owners. The lenders make the actual loan arrangements with the small business person, and the SBA may be able to provide a guarantee for the loan. You can start to find a Small Business Administration guaranteed loan when you fill out a search query at the online website or apply using the form to the right.

There are several types of SBA originated loans:

•Basic Loan Guaranty Loans – fast approval

•Certified Development Company 504 loans – special loans that must be used only to purchase property or to buy equipment or machinery. These are long-term, fixed rate loans.

•Microloan Program – Shortest time for approval, cannot be used to purchase property or pay bills. Has a maximum of $35,000.

To obtain a Small Business Administration loan or grant, it is necessary to complete an SBA application and have a thorough business plan in writing. You need to have financial statements, both personal and for the business. Again, the SBA can offer advice and assistance for filing out proper forms and submitting documents.

Many small business owners prefer to work through the SBA to get their loans. The lenders are in tune with small business needs; the process is expedited in many cases, and there may be less paperwork and time required to achieve approvals. Government guarantees for loans are a plus for the borrower and the lender; loans are more likely to gain approval when you work with the Small Business Administration.

To apply for funding for your small business, use the form on the right to begin the application process.

For more information, go to SBA Loan at

Should I get an SBA Loan? was last modified: February 23rd, 2012 by Amit Kraidman
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