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Small Business Loans

Of the total people who leave their jobs, almost 38 percent cite not being able to work the way they would like to, or the constant nagging of their boss as the primary reason. Another reason people quit their job is because they are considering being their own boss by starting a small business. But it is not an easy task. You need an actual business plan and approach, the proper license(s), and most importantly, the necessary financial resources (typically small business loans) to insure your businesses starts off on proper footing.

As defined by the Small Business Administration (SBA), a small business is any business venture which has less than 500 employees and less than $7 million in annual receipts. In the United States, there are various types of small business loans to satisfy the business plan being presented to the lender.

The Different SBA Loan Programs

  • 7(a) Loan Programs

Businesses with special requirements (such as those in exports or those operational in rural areas) are covered under this program. This is considered to be the most flexible choice, and also the most suitable one if you have a start-up in mind. The different 7(a) loan programs are:

  • Special Purpose Loans: offers 7(a) loans to those businesses which have been affected by NAFTA, to assist Employee Stock Ownership plans and so on.
  • Export Loan Programs: fewer than 70 percent of the total export businesses in the U.S. have a maximum employee count of 20. The various export loan programs further expand their export activities.
  • Rural Business Loans: this program is aimed at providing a simpler and more streamlined 7(a) process to acquire loans for businesses operating in the rural areas.
  • Microloan Program

If you are in need of small, short-term loans, then the Microloan program is just the right deal for you. You can use Microloan funds for:

  • Purchasing supplies or inventory
  • Purchasing machinery
  • Purchase of furniture

The Microloan fund cannot be used for the purchase of real estate or for the paying off of any existing debts. The maximum Microloan amount is $50,000.

  • CDC/504 Loan Program

Spanning long-term financial planning, the CDC/504 Programs provide a platform for the development of the community as a whole. The loan sanctioned under this program provides small businesses with fixed-rate financing. These finances are then utilized to acquire assets which are mainly aimed at modernization, such as commercial mortgages, street-improvement utilities, and so on. Your small business should be operated with a profit-seeking intention, but should not be engaged in the investment of real estate.

Loans for Women-Owned Business

Being a women entrepreneur, the world can be yours for the taking if you plan the expansion of your business correctly. It is advised that you visit the SBA Office for Women’s Business Ownership for further information related to the different types of grants and loans available to women and counseling on the same. The National Women’s Business Council is another federal advisory body which addresses various economic issues and offers advice to female business owners.

Wide Coverage 

Small businesses still account for over 80 percent of new job opportunities. The path to own and run a small business is open to everyone. In fact, minority groups and those affected by a disaster can avail the various small business loans which are specifically designed for them. So do not be afraid to stand out of the crowd; you do not need an MBA to make this happen. It can be more rewarding that you ever imagined.