It is true that anything good in life does not come easy. So, too it’s not all that easy for businesses to find a loan. A federal government agency too offers grants to businesses that are non-profit organizations or are into developing new technology. It is true that the SBA offers loan programs in partnership with community development organizations, local-lenders and micro-lending institutions.
Businesses find SBA backed loans with lenders having a partnership with the SBA.The lenders can be micro-lending institutions, community development organizations, local lenders as well as agencies that have a specialization in short-term commercial loans . The best thing about SBA loans is that it offers guarantee in the event of non-payment by borrowers.
The basic 7(a) loan and “504” loans fall under the category of SBA loan programs. They are delivered through Certified Development Companies (CDCs) for the sake of acquiring machinery, real estate and equipment.There are also the 7(m) Micro-loans of up-to $35,000 and the post disaster recovery and assistance loans.
Small businesses can become eligible for receiving assistance from state and local agencies depending on where the small business is being established, workspace, administrative support, training, tax incentives and reduced rates on existing office and workspace. Also, micro-loan programs that support are being sponsored for businesses involving childcare and firm that support designated enterprise zones.
Applications for federal grants can also be filed by small businesses, in-order, to carry out publicly mandated services and programs.
This article was submitted by Rohit Arora, co-founder of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to