SBA – Small Business Administration
SBA funding is something that all businesses should look into. The Small Business Administration is a federal agency setup to assist lenders in making loans to small businesses. They also provide a host of resources and information for small businesses and entrepreneurs.
The SBA was established in 1953 with the main goals of counseling, protecting the interests of small business concerns, and further improving the US economy. Their main function is to assist businesses with financing of their new ventures. They don’t actually give out any money to businesses; they guarantee the loans from regular lending institutions. The SBA will guarantee 75 percent of a loan, and up to $1 million worth of capital can be requested for your business.
The SBA has made it pretty simple to get approved for financing from them. There are three main criteria that you must adhere to in order to qualify for funding of this sort. You must have stake in the business. This means you should have money invested into the business. You also must have a detailed business plan which shows your expected revenue, how much capital is needed, how that capital will be used, and how you expect to pay back the loan. You should also work hard to maintain good personal credit scores. Your personal credit scores will be used to determine your character. They want to see that you have a history of paying bills and loans back on time.
To find lenders which are SBA approved you can search our free business capital search engine for free.