Take Your Small Business to the Next Level With SBA Loans

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You’ve put the time, dedication and legwork into dreaming up and then starting up your small business. You’re moving forward, you’re learning new things and you’re expanding your customer base. The next step is securing the necessary funding to continue growing. 

Young businesses can often use a boost to keep moving forward, and that’s where the Small Business Administration can help, by offering financial assistance to small businesses. 

Loan guidelines 

Rather than lending money directly, the SBA establishes guidelines for loans, which are handled by its partners. A wide array of SBA loan programs provide support tailored to small business needs: 

  • Starting and Expanding Businesses

The Basic 7(a) Loan Program offers support for starting, acquiring or expanding a small business whereas the Certified Development Company 504 Loan Program delivers long-term, fixed-rate financing for major assets. The Microloan Program puts small loans into the hands of recently established or growing small businesses. 

  • Disaster Loans

Disaster Assistance Loans help businesses affected by catastrophes or those located within a declared disaster area. For businesses recovering from physical or agricultural production disaster losses, Economic Injury Loans can provide much needed relief. 

  • Export Assistance Loans

Export Express gives exporters and lenders an efficient way to obtain loans and lines of credit. Businesses with export sales that need cash for day-to-day operations can turn to Export Working Capital. In addition, International Trade Loans are available for businesses that plan to export or for those negatively affected by competition from imports. 

  • Veteran and Military Community Loans

The Patriot Express Pilot Loan assists veterans and other military members who want to create or expand small businesses. When a key employee is called to active duty, the Military Reservist Economic Injury Disaster Loan can ensure operating expenses continue to be met despite the loss of personnel. 

  • Special Purpose Loans

CAPLines help meet short-term and recurring working-capital needs, and Pollution Control Loans support the planning, design or installation of a pollution-control facility. In addition, the U.S. Community Adjustment and Investment Program assists companies operating in areas that have been hurt by the North American Free Trade Agreement.

Surety bonds

According to the SBA, all federal construction contracts valued at $150,000 or more require a surety bond when bidding or as a condition of a contract award. Most private entities and state and municipal governments have similar conditions, which are also required by many service contracts

When small business contractors are unable to secure surety bonds through typical commercial channels, the SBA’s Surety Bond Guarantee Program helps arrange a three-party agreement. The SBA generally guarantees bonds for contracts up to $6.5 million and, in certain circumstances, up to $10 million.

Venture capital

Venture capital addresses the funding needs of entrepreneurial companies that are unable to secure capital from more traditional sources. This type of investment generally involves a cash investment made in exchange for a share of ownership and an active role in the company.

The Small Business Investment Company Program ­— a public-private partnership intended to fill the void between the needs of small businesses and the limited availability of growth funding — relies on qualified private investment funds. The SBA licenses these funds and offers access to low-cost, government-guaranteed debt that supplements money raised from investors.

Time to grow

Now is the time to take advantage of financial assistance that can take your business to the next level. Reach your full potential with the backing of the SBA.

For more information, visit www.sba.gov.


Have you used small business loans to finance your business? Or did you borrow money to start your business? Leave a comment below.


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