Small business administration loan is government supported financing
Small Business Administration loan programs provide an excellent source of capital for your business. This program is supported and funded by the government. The funds from the loan can be used for anything that will help you grow your business including purchasing or rental of real estate, acquiring equipment, purchasing software, general working capital, or marketing to name a few of the specific business needs that you can address with a Small Business Administration loan.
The government doesn’t actually give you the loan, but they guarantee up to 75% of the loan at an SBA approved lending institution. Many banks across the country are SBA approved, so it is important to find out if they are approved before applying. With the government guaranteeing the loan there is a better chance of being approved for the financing you need to grow your business. The SBA will guarantee up to a $1 million dollar loan.
Getting approved for a Small Business Administration loan is a lot easier if you have a detailed business plan to give to the lender. This plan should tell the lender how much money you are requesting exactly and how that money will be used. Having established business credit scores will highly increase your chances of being approved for financing of this sort. Any history of being able to make payments on time will give the lender the added security they need that you will be able to pay the loan back.
You can use our free business capital search engine to locate a Small Business Administration loan near you.