How Can SBA Loans Help Your Small Business?

The Small Business Administration (SBA) is most commonly associated with corporate finances. However, SBA can support your business before and after you start, from day-to-day management to expanding your business and making changes.

While most SBA businesses are open to all businesses, some loans and programs are only available to small businesses. The SBA considers industry size norms and other factors when defining a small business. SBA can support you in the following ways:

Business Loan Assistance

SBA does not provide loans, and you can apply for SBA's business loan assistance without being rejected by two banks.

The SBA provides loan guarantees to lenders to help you qualify for a business loan. In this way, she acts as a co-signer.

You can ask any lender about working with the SBA. You can also seek SBA assistance in finding a lender. Yes, getting a loan using an SBA loan guarantee requires additional time and paperwork, but in many cases SBA assistance can differentiate between getting a loan and not getting a loan. The SBA Linc program can help you connect with SBA lenders. You must register and answer certain questions before the lender can contact you. Speeding up the loan process is a brilliant idea!

SBA Loan Program

SBA's credit program is regularly updated and changed. You may find the following special and multipurpose loan programs supported by SBA useful:

The Basic 7(a) loan program is designed to help existing and new businesses obtain financing. 7(a) Loans may be used for various business needs, such as: B. As working capital.

Equipment and property in developing areas are eligible for 504 Go loans. To qualify, your company should be in a growth-oriented location.

The Small Business Administration also offers special loans for those who meet certain criteria, such as: B. Patriot Express for Veterans, Export Credits, Micro Loans to Support Startups, and Capline Loans.

Disaster relief

One of SBA's most important missions is supporting small businesses affected by disasters. Physical and financial help is available.

To expedite the loan process, local SBA offices often establish dedicated service areas. These loans are more of an insurance policy to lenders than direct business financing.

Other SBA disaster relief measures include loans for self-employed workers who have lost their jobs due to disasters and tax relief assistance to help business owners file their disaster year tax returns. You should also review advice on emergency preparedness.

R&D grants

The SBIR/STTR grant is an SBA initiative. SBIR and STTR stand for "Small Business Innovation Research" and "Small Business Technology Transfer", respectively. The SBA coordinates these initiatives.

The SBIR program is an initiative to encourage companies to conduct research with "commercialization potential". The research funding also targeted companies run by "economically and socially disadvantaged groups". The Small Business Administration (SBA) oversees the program and connects companies with 12 federal agencies that receive SBIR grants.