What Is SBA? With a portfolio of more than $45 billion, the Small Business Administration, or SBA, is the main source of getting funds for businesses through direct grants and loan guarantees.
SBA borrowings for small businesses have become a major source of financing, whether those businesses need money for the start up of the business or for the expansion of their existing businesses.
Choose the Right Option: There are several options open to small business owners when it comes to borrowing money from the SBA.
You should have a good understanding of all these options so that you can choose the option that suits you most.
You can get all this information when you visit the "Financing your business" section of the website of the SBA.
This section gives you a clear indication of what options are available.
You Need Good Credit History: Although this is true that the SBA borrowings are there for the help of small businesses, it is also true that you have to have a good credit history to get approval from SBA If there were some problems with the credit report in the past, then you have to make clear that all these problems have already been sorted out.
There is no doubt that SBA borrowings are much easier to get than the other conventional methods of borrowing money.
However, you must not forget that there will be fierce competition for grants and loan guarantees.
When you apply for a SBA loan, you must gather all the information related to the business project for which you are going to start.
A lender feels comfortable when he knows that the borrower is running his business knowledgeably; then, he finds no reason why he should not start financing these kinds of businesses.
Here are some of the programs offered by the SBA so that the small businesses can start or run their business very well.
Low Doc: Under this program, one can borrow a maximum amount of $150,000.
This Low Doc is a loan based on the relationship with the small business owners seeking loans.
This means that the lender personally knows the person to whom he is providing the money and is satisfied about his intentions and capacity of making repayments.
SBA Express and Micro Loans: Another option is SBA Express.
This is an ideal choice if you require funds immediately.
The maximum amount one can borrow from this is US dollar 250,000.
On the other hand, if you need a small amount of money to maintain cash flow, then you can choose a Micro Loan.
These are loans in which some nonprofit organizations borrow the money from the SBA and then lend it to small businesses.
SBA borrowings for small businesses have become a major source of financing, whether those businesses need money for the start up of the business or for the expansion of their existing businesses.
Choose the Right Option: There are several options open to small business owners when it comes to borrowing money from the SBA.
You should have a good understanding of all these options so that you can choose the option that suits you most.
You can get all this information when you visit the "Financing your business" section of the website of the SBA.
This section gives you a clear indication of what options are available.
You Need Good Credit History: Although this is true that the SBA borrowings are there for the help of small businesses, it is also true that you have to have a good credit history to get approval from SBA If there were some problems with the credit report in the past, then you have to make clear that all these problems have already been sorted out.
There is no doubt that SBA borrowings are much easier to get than the other conventional methods of borrowing money.
However, you must not forget that there will be fierce competition for grants and loan guarantees.
When you apply for a SBA loan, you must gather all the information related to the business project for which you are going to start.
A lender feels comfortable when he knows that the borrower is running his business knowledgeably; then, he finds no reason why he should not start financing these kinds of businesses.
Here are some of the programs offered by the SBA so that the small businesses can start or run their business very well.
Low Doc: Under this program, one can borrow a maximum amount of $150,000.
This Low Doc is a loan based on the relationship with the small business owners seeking loans.
This means that the lender personally knows the person to whom he is providing the money and is satisfied about his intentions and capacity of making repayments.
SBA Express and Micro Loans: Another option is SBA Express.
This is an ideal choice if you require funds immediately.
The maximum amount one can borrow from this is US dollar 250,000.
On the other hand, if you need a small amount of money to maintain cash flow, then you can choose a Micro Loan.
These are loans in which some nonprofit organizations borrow the money from the SBA and then lend it to small businesses.