The small business administration of America was first established in 1953 with the mission and to strengthen America by helping small businesses succeed in the United States. To date, they have helped tens of thousands of companies obtain the funding they need in order to operate their companies. We will be discussing some of this mission as well as how it is applied in detail in today’s article.
Although many would consider the SBA’s primary function to be the loan program, there are also many other services which they provide. One such service which is very useful for new company owners is there business planning assistance. Not only can indeed you general advice about setting up your company and help you avoid some potential pitfalls in your industry. But they also have consultants with years of industry experience who can help walk you through the process of creating a formalized business plan. When people refer to a business plan they are not referring to a generic overview of your company but rather a much more specific document. This document should outline in detail all of the potential expenses and potential sources of revenue for your future company. Having a detailed plan and having assistance in creating one is very useful when you are first starting so that you can see where you can make improvements to your more generic plans.
In addition to their assistance with your business plan they also offer loan assistance in the form of the small business administration loan program. This loan program requires lenders who participate in it to meet certain guidelines including maximum allowed interest rate, certain terms and conditions, and other conditions. Through this standardization it is easy for lenders and borrowers to both understand the terms and conditions of the loan and avoid any unexpected surprises. This can be a very powerful tool for you to use when you are attempting to fund your new company for the first time.
The SBA also runs additional programs such as directly funding emergency relief efforts and also guaranteeing and subsidizing certain types of loans for companies that are deemed to be beneficial to society. If you are curious if your company qualifies for these subsidies you should contact your local office to see if you qualify. Although the organization has certainly run into its own set of challenges it has proven the test of time in assisting many business owners in succeeding in running their companies.