Can I Get a Small Business Loan from the Government?
Can I Get a Small Business Loan from the Government? This is the question on many an entrepreneurs’ minds, and the answer is not so cut and dry. The short answer is no, there is no such thing as a government small business loan. However, there is gray area.
Setting the Record Straight
The federal government does not directly provide government loans for small businesses. What they do, however, is operate the Small Business Administration (SBA). Upon first glance at the loan programs listed on SBA.gov, it would appear that the agency does indeed award small business loans and grants. They do not.
What the SBA does is help entrepreneurs secure loans from traditional lenders, making it easier for these lenders to provide loans to small businesses by mitigating risk for the lending institutions. Naturally, as part of the federal government, the SBA has regulations that must be adhered to and strict guidelines that must be met by the borrower. Additionally, the SBA offers an array of resources created to help small business owners in their ventures.
What Else is Available?
Though not operated by the government, there are several not-for-profit agencies that also offer resources to those looking for small business
loans. A number of them receive federal funding, but few actually offer loans. Some may offer funding in the form of grants, but all offer valuable resources to help you get started. They may offer help with business plan writing, tips on how to present your plan, your business and yourself to the lender. Some organizations offer assistance with filling out loan applications. Check out the small business center at a local college, as well as non-profits designed to assist women, minorities, or veterans if applicable.
How to Find Lenders
Finding lenders that work with these types of agencies can be a little overwhelming. The SBA has a list of lenders on its website that offer funding under the agency’s programs. It still takes a ton of time and patience to weed through all of those that fit your needs and find the best one for your specific situation. As with any government entity, a lot of paperwork is involved.
Biz2Credit can help streamline the application process. Simply fill out our online form and we will connect with the best match from among 1,200 lenders in the Biz2Credit network that offer financing products to fit your needs. Visit Biz2Credit.com for more information and to get started.Source: blog.biz2credit.com