Government Loans for Small Businesses
The U.S. Provide government loans for
small businesses to help
set up and finance a
Government loans for small businesses--
Are you are an
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
Are you a newly
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.
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.
of SBA’s more popular government loans for small businesses are as
Physical and economic disaster assistance loans
*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
2) Most businesses that run for profit, and meet the SBA
3) For profit as well as not-for-profit businesses that are
already in operation, and have suffered physical damage
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
2) Meeting business obligations, paying for daily operating
3) Financing fixed assets such as lands and buildings. Not
available as working capital or for inventory, debt repayment, or
40% of the cost at the maximum of
$1million. $1.3 million for public policy goals.
7 years in the case of working capital, 25 years in the case of real
Very recently, due to the current
economic global recession,
SBA has introduced government loans for small businesses known as the
Dealer Floor Plan (DFP).
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.
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 loan will be
available for a period of 5 years.
SBA also offers other tailor-made loans to encourage other forms of
business activities such as:
~ Equity Investment (SBIC Program),
Loans Economic Development,
~ Military Reservist Economic Injury Disaster
~ Short-Term Lending Program, Export Express loan
~ CAPLines, etc.
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.
information about these loans can be obtained from
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.
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