Where To Look For Government Loans For Small BusinessLooking for government loans for small business? Look no further than beyond the fact that the federal government does not provide loans for small business. The government is not engaged in the business of providing loans simply because it is unethical for a government to profit from its own citizens in such a manner. But the government has worked around this issue by not being a direct lender, but by being a guarantor. If you are looking for government loans for small business, you might like to inquire into small business loans such as those provided by the U.S. Small Business Administration or the SBA loans and agricultural loans through the U.S. Department of Agriculture's B&I loans (Business and Industry) and other state and federal sourced loans. The advantage in getting government loans for small business is the fact that in general, its financing terms are easier to conform to than those you can normally get from financial institutions. Let us emphasize here again that government loans for small business are not direct loans, but rather, are guaranteed by the federal government. The U.S. Small Business Administration (SBA) which assists small business owners to start and expand their businesses achieves this by looking for the appropriate loans itself from private and commercial lenders and guaranteeing these loans in behalf of the businesses it helps. So far it has become the largest backer for small businesses and the most versatile when it comes to looking for loan assistance for a wide variety of businesses. To apply for an SBA loan, simply visit a local bank or commercial lender that has ties with the SBA. Be reminded that SBA loans are actually commercial loans in nature, but are under the guidelines and requirements of the SBA. Most importantly, it is guaranteed by the SBA which means that the SBA will be more than understanding (and less harsh!) when your business experiences some bumps on the road like missed loan payments. Another source of government loans for small business is the U.S. Department of Agriculture which offers the Business and Industry (B&I) Guaranteed Loan Program that works the same way as SBA loans except that it is only available for farm or agricultural related businesses. What the USDA does is help you get a similar lender for loans which you might use for boosting your farm operations, to buy new equipment and technology or for expansion of services. The USDA then backs and guarantees that loan for up to 80%. The same application procedure for an SBA loan applies as well to an USDA loan. Your chosen bank will provide you with all pertinent information on eligibility requirements, interest rates and payment terms. If you are in a rural area with the nearest commercial bank about half a day's drive away, you can contact your state Rural Development Office for information and assistance on loan details. Government loans for small business can also be sourced through your local and state institutions as well if they happen to have a Small Business Development Center where you can make inquiries. The problem of most government loans for small business is that they are often hidden and unpublicized. Make the most of your research and scour the internet for information on where to find them. Avoid sites that make exaggerated claims that promise you interest-free loans and grants amounting to hundreds of thousands of dollars. Go directly to legitimate government sites. |