Consider small business loans when considering the Small Business Administration (SBA). 1 The SBA can offer many different things to support the business you run both before and after it starts, starting with managing your day-to-day operations and growing the scope of your company to making adjustments.
Most SBA programs are open to all companies, but specific programs and loans are only available to small companies. The SBA takes into account industry size requirements as well as other factors in the definition of what constitutes a small-sized business. Below are seven practical methods that the SBA will assist you with:
Assistance with Business Loans Before discussing SBA loans, I’d like to dispel a misconception about SBA’s operation. The SBA isn’t a lender. It doesn’t have to be rejected by two banks to obtain SBA assistance for a commercial loan. The SBA provides loan guarantees for lenders in order to aid applicants in getting a business loan. This way, it is a co-signer.
There is a way to go to any bank and inquire whether they are working with SBA. You can also get SBA assistance in connecting with lenders. (see below.) There’s indeed more excellent paperwork and a long time when applying for a loan using the SBA loan; however, getting SBA assistance can mean the distinction in many instances in obtaining that credit or not. There is a way to contact SBA lenders via the organization’s Linc program. It is necessary to sign up and provide a few answers before lenders reach out to them. This is a fantastic way to expedite the loan process!
SBA Loan Programs
The SBA continuously updates and modifies its loan programs. Here are a few general-purpose and special-purpose/special business SBA-supported loan programs you might find helpful:
- The primary 7(a) Loan program was created to assist with financing existing companies and startups. 7(a) loans can be rearranged and used for various business reasons, such as working capital.
- The 504 “Go” loan purchases equipment and property in developing regions. To be eligible, your business must be located in a zone targeted for growth.
- The SBA also offers unique loan options for those who meet some requirements. For instance, Patriot Express loans for veterans, Microloans with less money to aid startups, Export loans, and Capline loans to help with working capital.
- In Rosemary’s post on SBA Loan Programs, find more information on these loans.
One of the primary purposes of the SBA is to assist small-sized businesses affected by natural disasters. Damage to the physical and aid for economic injuries could be provided.
Local SBA offices usually establish specific service areas to speed up loan approval. Like others, SBA loans offer guarantees to lenders, but they are not direct business loans.
Other SBA disaster aid includes loan assistance to self-employed entrepreneurs who lost their job in the aftermath of a catastrophe and tax relief aid to assist business owners with preparing taxes for the tax year in the event of a tragedy. More information is available from the website of the SBA’s Disaster Assistance page. It is also a good idea to look at their disaster preparation tips.
Grants for Research and Development
The unknown SBA program is known as the SBIR STTR/SBIR grant. SBIR is a contraction of “Small Business Innovation Research”, and STTR is “Small Business Technology Transfer.” The SBA manages these programs.
The SBIR program is a competitive program designed to motivate businesses to conduct studies that have the potential for commercialization “potential of commercialization.” It also concentrates these research grants towards companies run by “socially or economically challenged people.” SBA manages the program, which connects companies with government agencies in 12 which have SBIR money in place.
The STTR program enables businesses to connect to research institutions through public/private partnerships for joint venture possibilities. These STTRs aim to “bridge gaps between results of fundamental science and the commercialization of the resulting innovation.” Five federal agencies participate. Find out more about how to be eligible and submit an application for any of these programs on the site of SBIR/STTR.
Aid in Becoming a Federal Contractor
Smaller businesses are often told that they cannot compete with government contracts since they’re tiny. However, the SBA strives to equalize the level playing field. Most government agencies insist several purchases are reserved for small-sized businesses. So it is possible to gain access to the contracts.
If you’re considering being a government contractor, look at SBA’s online training course, “Government Contracting 101.” To get a thorough description of the procedure, check out this post that outlines the steps to follow to get federal government contracting for writers. (It applies to any business.) Firms looking to export their products may get assistance from the Small Business Administration through its export division.
Support for Specific Types of Small-Business Entrepreneurs
I’ve talked about Patriot Express loans for veterans. However, the SBA is also a strong advocate for other groups.
A Women’s Office to help women-owned Businesses that provides specific assistance to women who want to start and run small enterprises
- A loan designed explicitly for minority-owned companies
- Services for the disabled and less fortunate entrepreneurs
- immigrants (foreign national), entrepreneurs
- Assistance, Training Information, and Training
Individual assistance is available in business startup planning, writing a business plan marketing, business planning, and many other questions related to business through SCORE (formerly previously known as Service Corps of Retired Executives) (formerly the Service Corps of Retired Executives) SBA Partner Group. There are SCORE Chapters all over the U.S., and one is probably close to you. Below are other sources to find local information and online resources and education:
The SBA Learning Center, with online classes on a range of topics.
Small Business Development Centers have over 900 sites and are associated with the local university and college. They also offer seminars for training and individual consultations.
The “Tools” site offers a wealth of additional resources to get information on everything related to small-scale business.
It’s quite a bit! This isn’t the only portion of what SBA assists small and medium-sized enterprises. If you ever hear about the SBA, remember that they’re not only to provide loans. Contact the local SBA office to find out which training and service opportunities are offered in your region.