Federal Small Business Loans Grants

Federal Small Business Loans Grants

If you are looking to start a new venture then the Small Business Administration (SBA) can render help with financing, training, planning and advocacy to set up your independent business. The US government presently does not offer any grant program to start or to expand business but yes, it offers many assistance programs for planning, improving and in attaining SBA low-interest small business loans.

Even the local and state governmentsoffer financing programs for the commencement and expansion of small businesses. If you are seeking for any business help them read the article and apply today. 

Assistance Programs for Expansion of Small Businesses

Small business can avail SBA’s financial programs that render financing needs such as surety bonds, debt financing and equity financing.

Debt Financing

Small businesses cannot get direct loans from SBA but can avail from its partners based on the set guidelines for taking loans. Partners may include micro-lending institutions, community development organizations and authorized lenders who are guaranteed by SBA about the repayment of the loans. This eliminates some risks and worries of the lenders and encourages them to support enthusiastic entrepreneurs to set up their venture.

It is almost like a commercial loan planned according to SBA structured rules along with SBA guaranty. Make a thorough research on the current fiscal policy based on the present economic conditions and then apply.

SBA’s Surety Bond Guarantee (SBG) Program

A surety bond is an agreement signed between a project owner, a contractor and someone who assumes responsibility for any obligation or debt of another also known as surety. The SBG program helps small contractors by taking a guarantee for assuming a percentage of loss if the contractor is unable to carry out the contract or breaches contract terms with the surety. SBA guarantees bonds up to $5 million and in certain circumstances up to $10 million to assist small business contractors avail surety bonds.

SBA’s Small Business Investment Company (SBIC) Program

Small Business Investment Company is a public-private partnership investment program by SBA which aims to create growth capital for small businesses, fulfilling SBA regulatory requirements. The investments are not made directly in the businesses instead SBA raise capital from private investors and supplement that with low-cost, government-guaranteed debt instruments.

Research Grants for Small Businesses

The US government offers Research Grants for Small Businesses if the business is associated with scientific research and development (R&D). The grant offered is administered by Small Business Technology Transfer (STTR) programs and Small Business Innovation Research (SBIR). Enthusiastic entrepreneurs are persuaded by the SBIR and STTR to take on scientific projects that meet the following criteria:

·         Projects that have high prospective for commercialization

·         Those that abide by the federal R&D objectives

If you are looking for starting a small business and seeking for assistance for expansion, the SBA can be a good place to start with. Make complete research about the financing options of SBA as there are varied programs with diverse qualifying criteria. Look for the ways to receive assistance and start applying today for your dream venture.


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