To keep the business on track is not always easy especially if there is lack of funding. The economic crisis has created a sort of a ‘black hole’ for businesses as all credit support seems to have vanished and get absorbed by this turmoil. In this difficult time, government is making every effort to help small businesses by giving them small business loans.
The Federal Government’s Small Business Loan Programs are deemed to be the partner of businesses that are in an expansion phase, wants to do renovation work or are just in a start-up mode. The small business loan programs serve as aids to enterprises that wish to make it big in their professional career and want to survive the recession.
Federal funds are made available to government as well as private institutions. These funds can be utilized by organizations to
1) Pay Property rents
2) Procure Raw Materials
3) Meet Advertisement Expenditures
4) Buy an Office Space
5) Expansion of Business
6) Hiring Additional Staff
Borrowers are not discriminated under the government backed Small Business Loan programs. An entrepreneur can apply for extended lines of credit irrespective of race, gender or time of being in business. Women, Native Americans and fresh graduates can file applications for loans and can find approval if they meet the basic norms.
SBA is offering loans to entrepreneurs through various Government, non-profit and private financial institutions. SBA’s service is not just restricted to loans but it is also educating entrepreneurs. For this very reason it is offering education grants and business training to young and old enterprise owners.
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