Recently perusing the Online Incorporation MaxBlog, I discovered there is a government program from the U.S. government that provides loans to small business trying to get started.
Called the Basic 7(a) loan program, the Small Business Administration makes capital available to ventures trying to get a foothold in their respective markets – loans are provided by private lenders that participate in the program. They are made on a guaranty basis, which means the institution structures the loan according to SBA guidelines while the agency guarantees a portion of it in the event of default.
Any business looking for a 7(a) loan must meet SBA’s requirements in order for a financial institution to loan them money under the guaranty basis. These criteria include: meet SBA size standards, be for-profit, not already have the resources themselves to provide the capital and be able to demonstrate repayment.
Not all private banking institutions participate, but many do…check with your local bank to see about obtaining a loan for your small business.
Learn more about SBA’s Basic 7(a) Loan program here.