The Facts About Federal Government Small Business LoansIf you ask the federal government small business loans, you must be prepared for the fact that in general, the federal government does not give out loans directly. Grants, on the other hand, are limited to certain very strict requirements and classifications. But if you must insist on the federal government small business loans, you might be referred to an array of loans and capital financing programs that are normally pegged at much lower interest rates. Certain businesses, on the other hand, can ask the federal government small business loans if they are based for example on agriculture. Inquire with the federal government small business loans if you have a farm or an enterprise that deals with agricultural products or services. The U.S. Department of Agriculture (USDA) for one offer a loan called the Business and Industry Guaranteed Loan Program that does not really offer you a loan directly, but guarantees one for you from a private or a commercial lender. Again, remember that the federal government does not offer direct loans but can act as a conduit and guarantor for loans through other institutions. This mechanism by the federal government small business loans may be somewhat illogical, but is perfectly ethical. It would be highly unethical if the government were in the business of giving out loans and profiting from it. So there is provision by the federal government small business loans such as the B&I which actually offer very attractive and competitive financial terms for businesses who are in the agricultural industry. The loan package can guarantee loans for up to 80% if its value and can be used as starting capital and to buy other requirements and machinery for an agricultural enterprise. Applying for such a loan is as easy as going to your bank or a specific financial lender and getting a form. Your bank has already been instructed by the federal government to provide you with all the necessary information to apply for the loan which includes eligibility requirements, loan terms, interest rates, and equity details. If you are hesitant about going to a bank and may be somewhat shy, your local Rural Development Field Office may be able to offer you some assistance. Other funding sources by the federal government small business loans include specific loans for other industries and business types involved with transportation. Depending on the scale and need of your business, you can ask the U.S. Department of Transportation if you meet the requirements for their Short Term Lending Program. Small trucking companies wanting to expand or go past existing problems that have put their companies at a disadvantage, can approach the Environmental Protection Agency for loan assistance. They can also act as a guarantor to lending agencies that may be able to provide you with some loans. But be informed though that this type of loan from the EPA is environmentally related. It will only cover expenses or financial coverage for technologies related to pollution-limitation devices or systems for trucks. The array of federal government sources for small business loans is varied and even unpublicized. It would take a resourceful and patient person to sift through all the available channels to come up on a loan that meets one's requirements. |