A Guide To The Small Business Administration (SBA)
The Small Business Administration or SBA is there offering their services to potential small business enterprises in terms of providing for the loans that they need to help their business going through its beginning stages. What can we know about the SBA? The Small Business Administration is an agency started during the 1950’s designed to help American small businessmen in four key areas, namely, management, advocacy, procurement, and financial aid. When the SBA does its functions, there is no interference brought about by the federal government. Other services offered by the Small Business Administration are as follows: business loans programs, investment programs, disaster loan programs, and bonding for contractors.
The SBA program that has benefited a lot of small businesses is the business loan program. So, for small businesses looking for funding sources for their business, one of the best options to take is the SBA which offers different programs to suit the needs of every small business.
SBA does not offer direct loans. What the SBA does primarily is to provide the guidelines for securing a loan with their guarantee. You still need to go to finance institutions to apply for a loan but the SBA will vouch for you that the loan will be repaid.Applying a loan from the SBA, in reality, is applying for a commercial loan, custom made according to the requirements of the SBA with its seal of approval. However, you will not be able to get the loan if you have other sources of financing on reasonable conditions and terms. SBA policies are also subject to change depending on the Governments fiscal policies.
With a partially public and a partially private investment partnership, SBA can offer venture funding to small businesses. The SBA manages, licenses, and regulates the venture funds which are privately owned. Unlike other venture capital firms, SBA limits their funding to legitimate small businesses subject to reasonable terms and conditions.
SBA also has a bonding program to help small venture contractors acquire surety bonds, which is a bond signed between three parties – the contractor, a surety or a guarantor, and the project owner. If the contractor fails to complete the project, the surety take the responsibility.
These are the benefits that small businesses can gain from the SBA. This agency has helped many small businesses become successful over the years. So if you are a small business owner, a starting business man or a venture contractor, consider the SBA programs and services for your business financial needs.
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