Get Your Business Funded: Creative Methods for Getting the Money You Need

SBA Loans

What if I were to tell you that there is an agency of the United States government whose sole job is to help you succeed in your business? Would you like that? And what if I further told you that said agency facilitates in excess of 50,000 small business loans a year, totaling more than $15 billion? Do you think that may help you get your business funded?

I thought so.

Of course we are talking about the Small Business Administration. In many ways, the SBA is one of the best friends your business can have, but this is even truer when it comes to funding. SBA loans have helped millions of entrepreneurs start and grow their business and they can help you too.

The first thing to understand about SBA loans is that the SBA does not make loans, as strange as that sounds. What the SBA does is guarantee loans. By offering a loan guarantee to a bank, the SBA makes it easier for that bank to make more loans since the bank is assured of repayment; if the borrower is unable to repay the loan, the US government will. That is a fine incentive for making more loans.

Now, why does the SBA do this? The answer is that it wants to spur business development. The federal government knows that small business really is the backbone of the US economy. Accordingly, the more loans that are made to qualified small businesses, the greater the positive economic ripple effect will be:

• More startups begin.
• More businesses grow.
• More jobs are created.

So getting funds into the hands of qualified small ...