There are rumors of government loans for small businesses running rampant. While these may not always be what they are made out to be, they do exist. The first thing to know is that they are not offered through the government directly, but rather through approved lenders. The funds are guaranteed by the government through the Small Business Administration, but not awarded by the government. There are certain general types of circumstances, borrowers, and businesses however that qualify for these programs.
There are government business loan programs designed for small businesses located in rural areas. A list of approved lenders for this type of loan can be found at SBA.gov. The next step is contacting each one to see what they have available, and then start wading through the paperwork. It can be difficult, but it is worth it if you are eligible.
If your business has suffered physical or financial damage from an act of God such as a tornado, hurricane, or flood, and your area has been declared a disaster area by the government, you may be eligible for a disaster loan program. Funds can be used to make repairs to physical damage or to compensate for loss of business even when no physical damage was suffered.
Special Borrower Categories
The government has loan programs for women, veterans, and members of minority groups who want to start a business. If you are an aspiring business owner who fits into one of these categories, the competition can be fierce, but there are fewer people competing. It is worth checking this option out to see if you qualify.
The easiest way to navigate the small business loan process is through Biz2Credit.com. Our loan specialists can quickly find the lenders that offer loans you are looking for!