Today, we will be discussing the different types of small business loan programs, and what they may offer your small business. These programs are offered through the Small Business Administration, as well as various non-profit and for-profit lending institutions.
The first thing you should understand about small business loan programs is that they are specifically designed to meet the needs and restrictions of small businesses. Namely, they do not have the same stringent criteria required by big banks to give out loans, under most circumstances. These criteria would include ten years in business, revenue over $100,000, superb credit, etc. Although these criteria may be acceptable for large corporations, chances are your small company won’t make the grade.
The SBA is one of the strongest sources for small business loan programs with specialty loans for certain niche businesses. For example, under one program they give direct funding (as opposed to the loan guarantee they normally do) to any company working in certain aspects of import and export.
Under another program, they fund non-profit intermediaries to fund loan recipients, based on their perceived value to the community. This is especially designed for companies that work in underprivileged neighborhoods and that provide services to the surrounding community.
In addition to the SBA small business loan programs, there are a number of non-profit organizations that typically lend money to a target group in their niche. KIVA micro loans going towards developing countries is an example of these specialized programs. However, there are literally hundreds more.
For more information, go to Small Business Loan at http://www.unsecuredbizloan.com/small-business-loan/