While the government doesn’t directly offer loans to small businesses, there are many government grant and loan programs available that offer aid indirectly. Small business owners just have to know where to look and how to get started. First, it helps to know what exactly is out there.
B&I Guarantee Loan Program
The Business and Industry Guarantee Loan Program is one of these. These funds are offered to rural small businesses by local lenders, and guaranteed by the Small Business Administration. They can be used as working capital, to buy equipment, and even to refinance debt in some cases.
The Rural Business Investment Program
The RBIC is a program in which the USDA licenses companies to make equity like investments in small enterprises in rural areas. These funds are disbursed to companies by the government, who then can use them at their discretion to help smaller businesses get started. These funds are not loans, but rather investments funded indirectly by the government.
Rural Economic Development Loan
Local utility companies can also receive loans through a program known as REDL, or Rural Economic Development Loans. The utility, in turn, is to lend the funds to local small businesses in an effort to aid rural economies. The business pays the utility back directly and the utility repays the loan to the USDA. As a small business, some research into whether any local utilities offer such funds may be warranted.
Where is the best place to start when it comes to finding small business financing? Whether you are seeking government assistance, traditional loans, or alternative lending options, Biz2Credit is the place to start. Simply fill out a short and simple online questionnaire and we will get you hooked up with the lenders in our network that offer exactly what you need. Go to Biz2Credit.com to see what it is all about and get started today.