Small business government loan is government supported SBA financing for your business.
Small business government loan financing is provided by the Small Business Administration (SBA). They provide loans through participating lenders to qualified small businesses. The SBA loans provide lower, more competitive interest rates with longer payback terms. The SBA also does not have pre-payment penalties on all of their loans under 15 years, so that allows you to pay off the loan quickly and save even more interest over the life of the loan.
A small business government loan can be used for a variety of business expenses including working capital, overhead expenses, marketing, commercial real estate purchases, buying another business, refinancing business debt, inventory purchases, etc. You can use the SBA loan for anything needed to help your business be successful. The other great thing about an SBA loan is that most for-profit businesses are qualified for this type of financing over a variety of industries including manufacturing, wholesale, retail, and service businesses.
The financing for a small business government grant varies from $200,000 up to $5 million. Getting approved for an SBA loan can be a difficult process if you have not properly established your business credit history. The SBA will not permit one of their qualified lenders to loan you money without established business credit scores. These can be first established by separating your personal credit from your business credit. This means that you take out loans with your businesses government ID number instead of by using your social security number.
You also have to obtain small lines of credit from businesses that report your payment history to the Small Business Financial Exchange. Having this in place will help grow your business credit scores. There is much more to know in regards to establishing business credit scores. Our Business Finance Coach is here to help you every step of the way.
We also provide a free business capital search engine that gives you access to over 4,000 lenders. You can find lenders that can help you obtain a small business government loan.