An SBA business loan is a debt instrument provided by you to by a lending institution that has been guaranteed by the United States government through the Small Business Administration. Many entrepreneurs wrongly think that it is the federal government that grants the loan. This is not the case. With an SBA loan, the government essentially acts as your cosigner for the loan. In the event that you default on the business loan, the US government will provide the bank with a reimbursement for the loan. As such, banks love to make SBA loans as they present very little risk to the bank, provide small business owners with the capital that they need, and increase activity in community bank branches – all while making a nice profit for themselves.
Applying for an SBA business loan is a difficult process despite the fact that the only limitations regarding who can apply is that you must be of good moral character (ie. no criminal record) and an American citizen. You should be immediately aware that receiving approval from the SBA to receive a loan is a difficult process and can take anywhere from 45 to 180 days depending on how well you have prepared the appropriate documentation and business plan for the business loan.
The documentation required to obtain a business loan that is backed by the SBA is significantly larger than that of a conventional business loan. Additionally, there are several different SBA loan programs that are available to you depending on your borrowing needs. These loan programs include, but are not limited to:
- SBA 504 Loan
- SBA 7(a) Loan
- Express Program Loans
- Military Veteran Business Loans
- Rural Business Loans
- Micro Business Loans
When determining which SBA loan is right for you, you should always consult with a properly trained accountant or financial advisor that can take into account your entire business and personal financial situation.
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Help answer the question about Business
Why is big business considered evil by the left but big government is considered wonderful?Big business produces a product, creates job and creates wealth. Big government creates large inefficient agencies, gobbles up wealth, creates waste and is corrupt. Big business needs to be watched and when found corrupt the corrupt need to go to jail. Small business is just as corrupt as big business. It just doesn't make the national news.
So why is big business demonized by the left but big government loved? Our founding fathers didn't trust government at all so why does the left love it?
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LookingforBusinessLoan.com is a specialty website that provides content that focuses on the needs of small business owners and people seeking start up business loans. We encourage you to visit our website if you are looking a for business loan.
Your chances are not good.
If you have no collateral and you have no experience in this type of business, oftentimes banks will not even look at your business plan. Even SBA will look for collateral as SBA loans come from banks as well though it is not the only factor (plus you're a little short of the 20% personal guarantee that SBA looks for) http://www.sba.gov/services/financialassistance/eligibility/qualify/index.html
Even SBA does NOT give out grants. From the SBA website http://www.sba.gov/mostrequesteditems/CON_FAQ2.html
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"The U.S. Small Business Administration does not offer grants to start or expand small businesses, although it does offer a wide variety of loan programs. (See http://www.sba.gov/financing for more information) While SBA does offer some grant programs, these are generally designed to expand and enhance organizations that provide small business management, technical, or financial assistance. These grants generally support non-profit organizations, intermediary lending institutions, and state and local governments."
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Venture capitalists focus more on established businesses, but unless you know someone who provides seed capital, then try. But remember, venture capitalists will take some of the ownership from you
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