Us government small business loan application apply small government funded small business loan

Us government small business loan

Theoretically speaking, the U.S. government does not currently provide grants for starting or expanding a small business. However, fact remains that the government does offer plenty of free help in planning how to start or improve your business and in securing low-interest SBA-backed small business loans. Though, many states does offer small business loans to individuals.

It is worth pointing in this regard that SBA does not offer grants to start or expand small businesses. As a matter of fact, SBA's grant programs generally support non-profit organizations, intermediary lending institutions, and state and local governments in an effort to expand and enhance small business technical and financial assistance.

In theory, the "SBA" is the U.S. Small Business Administration. Since 1953, the SBA has helped thousands of Americans immensely in forming small businesses. At present, SBA offices in every state, the District of Columbia, the Virgin Islands and Puerto Rico assist with planning, financing, training and advocacy for small firms. In addition, the SBA works in collaboration with thousands of lending, educational and training institutions nationwide.

The question now arises: Why is the U.S. government interested in helping small business This is because of the simple fact that America's 25 million small businesses employ more than 50 percent of the private work force, generate more than half of the nation's gross domestic product, and are the principal source of new jobs in the U.S. economy.

If your business is or will be independently owned and operated, not dominant in its field and meets the maximum business size standards required, then yes, the SBA could help you. For getting small business loan, you should answer the question: Do you have a business plan As a matter of fact, that is usually the first question a potential lender will ask when you go seeking a loan to start a small business. Unless you can answer, "Yes, and here it is," you are bound to get the negative response.

If experts are to be believed, a good business plan includes four distinct elements: 1) the description of the business, 2) the marketing plan, 3) the financial management plan and 4) the management plan. In addition, the business plan should include the executive summary, supporting documents and financial projections.

It is worth pointing in this regard that as an pivotal formal document, your business plan should follow a detailed outline that anticipates and answers the lender's questions. If you are interested in getting some free professional help with your business plan -- and just about anything else related to starting or expanding your small business Well, below it is.

SBA Small Business Development Centers (SBDCs), gives you professional up-to-date counseling, training and technical assistance in all aspects of small business management. What’s more, services are offered free of charge to anyone interested in beginning a small business for the first time, or improving or expanding an existing small business, who cannot afford the services of a private consultant.

In addition to free help from their own full and part-time staffs, SBDCs offer you free help from private-sector consultants, engineers and testing laboratories. According to experts, special SBDC programs and economic development activities include international trade assistance, technical assistance, procurement assistance, venture capital formation and rural development.

As a matter of fact, the SBDCs also make special efforts to reach minority members of socially and economically disadvantaged groups, veterans, women and the disabled. It is worth pointing in this regard that assistance is provided to both current or potential small business owners. In addition, they also provide assistance to small businesses applying for Small Business Innovation and Research (SBIR) grants from federal agencies.

According to one estimate, Small Business Development Centers services are offered through a network of nearly 1,000 service locations, in all 50 states, the District of Columbia, Guam, Puerto Rico, Samoa and the U.S. Virgin Islands.

It is worth noting that SBDC assistance is tailored to the local community and the needs of individual clients. As a matter of fact each center develops services in cooperation with local SBA district offices to ensure statewide coordination with other available resources.

The question now arises: What can an SBDC help you with Just to name a few: Writing a business plan, getting a loan, marketing, licenses and laws, selling to the government, patents and copyrights, selling abroad, hiring employees, buying the right equipment and much more.

According to experts, each center has a director, staff members, volunteers and part-time personnel. In addition, qualified individuals recruited from professional and trade associations, the legal and banking community, academia, chambers of commerce and SCORE (the Service Corps of Retired Executives) are among those who donate their services.

As a matter of fact, using them as sort of their "personal trainer," successful small business owners have estimated the value of services they received free from the Small Business Development Centers program at over $10,000.

That’s why if you are considering starting a small business, a visit to your nearest SBDC may the best FREE investment you will ever make.

In theory, all SBA loan programs lend to small businesses unable to secure financing on reasonable terms through normal lending channels. As a matter of fact, the loan programs are operated through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA -- the Agency has no funds for direct lending or grants. Majority of private lenders (banks, credit unions, etc.) are accustomed with SBA loan programs so interested applicants should contact their local lender for further information and assistance in the SBA loan application process.

Certified Development Company (CDC), a 504 Loan Program gives you long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment for expansion or modernization. Generally a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower.