Government Loans for Small Businesses


red phone

The U.S. Provide government loans for

small businesses to help

set up and finance a business 


Government loans for small businesses--

Are you are an entrepreneur?

Do you want to start a small business?
Do you lack adequate funds to start the business?
Do venture funds and venture capitalists intimidate you with their tactics?
Are you a newly established business?
Do you need funds to grow and expand?

If you have answered “Yes” to any of these questions, the government loans for small businesses provided by the U.S. Small Business Administration (SBA) is what you should be looking at. 

The U.S. Small Business Administration was established by the federal government of the United States in 1953 with the express purpose of providing government loans for small businesses.


invest-well

However, it must be made clear at the very outset that the SBA does not directly finance a business with a government loan. Rather it works through its partners and lending institutions, such as, banks that operate at the local and district levels.

Some of SBA’s more popular government loans for small businesses are as follows:

redarrow  7(a)

  redarrow  Microloan Program*

  redarrow  Physical and economic disaster assistance loans

  redarrow  CDC 504**

*These particular federal government loans for small businesses are made available through nonprofit community based lenders known as Microlender Intermediaries. Eligibility requirements for such loans vary from lender to lender.

**These government loans for growing small businesses are made available through Certified Development Companies sponsored by the SBA.


These loans are available to:
1)   Most businesses that run for profit, and meet the SBA size standards.
2)   Most businesses that run for profit, and meet the SBA size standards.
3)   For profit as well as not-for-profit businesses that are already in operation, and have suffered physical damage during a national natural disaster.
4)   For profit as well as not-for-profit businesses that are already in operation, and have suffered economic losses during a national natural disaster.
5)  For profit businesses that are seeking to expand.

Govorment Loans for Small Businesses are available for:
1)   Establishing new businesses, expanding established businesses.
2)   Meeting business obligations, paying for daily operating costs.
3)   Financing fixed assets such as lands and buildings. Not available as working capital or for inventory, debt repayment, or refinancing.

Loan Amounts

40% of the cost at the maximum of $1million.  $1.3 million for public policy goals.
Repayment period
7 years in the case of working capital, 25 years in the case of real estate


Very recently, due to the current economic global recession, 

the SBA has introduced government loans for small businesses known as the Dealer Floor Plan (DFP).

The major features of the DFP are as follows:

  • It is offered to the especially hard-hit auto, recreational vehicle, boat, manufactured home and trailer dealerships;
  • It is offered so that the above-mentioned dealerships can replenish their inventories. The loans will guarantee 60-75% of the wholesale price of the inventory.
  • The loan is available for a minimum amount of of $500,000 and a maximum amount of $2 million.
  • The loan will be available for a period of 5 years.
The DFP is a pilot program that will run till Sept. 30, 2010. At that stage, the SBA will determine the viability or the necessity of continuing with the program.

The SBA also offers other tailor-made loans to encourage other forms of business activities such as:
~  Equity Investment (SBIC Program),
~  Indian Loans Economic Development,
~  Military Reservist Economic Injury Disaster Loan Program
~  Short-Term Lending Program, Export Express loan
~  Employee trusts
~ CAPLines, etc. 

Apart from providing government loans for small businessess -- both startups and expanding, the SBA also provides other kinds of resources like counseling, advices from experts, etc. to help the small business establish itself and succeed.

Further information about these loans can be obtained from http://www.sba.gov. 

You may also consider a business coach; business coaches can help you navigate the site, make sense of the fine print, fill out the forms correctly and create a winnable business plan to convince lenders.



Return from Government Loans for Small Businesses to DialACoach.com Home


Successful people Helping You Succeed.

Get the help you need, on
your own terms.

Sign-up For Our FREE Newsletter!

Email

Name

Then

Don't worry -- your e-mail address is totally secure.
I promise to use it only to send you DialACoach E-Zine.

Got Questions? 

Lingering Question

Be Different.

Stand Out From Crowd

Get Answers.

Defining Success



Be balanced in all areas of your life.  



Privacy Policy | All Rights Reserved | Link