SBA Business Loans For Your Startup

When you are trying to start your business or expand an existing business, often there is a need for additional funding. The Small Business Administration has a number of programs available for small entrepreneurs to borrow money. Are you an entrepreneur in the making? If so yes, here’s we describe the some good information to know.

7 (a) Loan Guaranty Program

The 7(a) is the SBA’s most popular loan program. As a small business owner, you can get up to $2,000,000 from your local 7(a) lender, backed by a partial guarantee from the SBA. Note that the SBA is not lending you any money directly. What they are doing is making it less risky for a local lendr to provide you with financing. The loans are very flexible since they can be used for starting a business or expanding an existing business and are funded by commercial lenders. Possible uses for a 7(a) loans are typically used for working capital, New furniture ore fixtures, renovation, asset purchases and leasehold improvements.

Some of the loans under this program include Express Programs, Rural Lender Advantage Program, Export Loan Programs and Special Purpose Loan Programs.

Loan maturity for 7(a) loan programs is up to 10 years if used as working capital for the business or up to 25 years if used for fixed assets.

Microloans

For qualified new businesses needing start up capital, or an existing business needing funds to grow, the SBA Microloan Program provides loans up to $35,000 through nonprofit lenders in the community the business is located in. Microloans are short-term, and are usually used for not-for-profit child care centers or to finance small business concerns such as inventory, training or necessary equipment expenses. The average amount of SBA microloans is around $13,000. Microloans cannot be used to pay off other business debts or to buy business real estate.

America’s Recovery Capital Loan (ARC)

Another program through the SBA offering up to $35,000 for small business owners was started as a result of the struggling economy. Because small businesses contribute to the economy, the government decided to create America’s Recovery Capital Loan program. The loans are meant to help a struggling business get back in the “green” and turn a profit. ARC loans are only available until September 30, 2010 (or until the program funding runs out).

Disaster Recovery Loan Program

If your business is located in an area declared as a “disaster area”, you could be eligible for a Disaster Recovery Loan. These programs are sometimes offered by the SBA even to people who don’t own businesses if a homeowner, renter or personal property owner experienced losses due to natural disasters.

Homeowner and Renter Disaster Loans – there are personal property loans up to $40,000 to help repair or replace damaged personal property such as clothing, cars, furniture or electronics. Homeowners may also apply for loans up to $200,000 to replace or repair the home itself.

Business Disaster Loans – up to $2 million can be used to repair or replace any real property owned by the business. There are also Economic Injury Disaster Loan programs for businesses up to $2 million to help if the business suffers economic injury, even if no physical damage has been caused.

Reply

XML Sitemap

Dividend tax only on dividend income above Rs 10 lakh
Snapdeal’s Kunal Bahl describes what it takes to get into the haloed club
Time to Surf the ECB’s Market Wave
How to get loan you against PPF – A discussion
Axis Bank limits support for snapdeal’s seller financing programme.
Mukesh Ambani led Reliance Jio accuses Bharti Airtel, Vodafone, Idea of preventing launch
Mahindra looks north after UK electric car launch
Amazon, Flipkart may soon have to stop cash-back offers
No Preview
Snapchat raised $1.8B in a Series F round; leaked deck reveals revenues
How to Find an Angel Investor
Companies boost green bond offerings on government’s clean-energy push
Alibaba, Ant Financial inject fresh cash into India’s Paytm
BRICS Bank to fund inclusive needs of emerging nations: PM Narendra Modi
How to make money in Real Estate
How to become a Best Real Estate Agent
What Kind Education Do You Need To Become A Billionaire?
Microsoft will stop updating anything older than Internet Explorer 11. But millions are still using the old browsers.
How to get loan you against PPF – A discussion
Google’s Nexus Lineup Offers Better Security Among Android Phones: Cambridge Report
Reliance Jio spending Rs. 1lakh crore on 4G rollout