While the government doesn’t offer direct small business loans, they do support small businesses through the Small Business Administration (SBA). Part of this support, among many other services, is backing loans for those that might not qualify for small business lending otherwise.
Special Categories
If you can be classified as a minority, are considered a veteran, or are a woman, you could qualify for loans that are guaranteed by the SBA. The government sees inequality in the business world among women and minority owners and seeks to help bring balance. They also see that many veterans have a hard time finding their niche after the sacrifices they have made for our country, and they want to help them find their way. Often opening their own business is just the thing, but they may not know how to go about it. The programs and lending options offered through the SBA can help.
Related Article: SBA Loans vs. Non-SBA Loans
Rural Areas
Sometimes qualification for government small business loans depends of the location of the business. There are specific loan programs designed for rural areas. One example is the B&I (Business and Industry) Guaranteed Loan Program. This a program that guarantees loan funds for small business in rural areas that can be used for a number of costs including machinery and equipment, working capital, some types of debt relief, and even buildings and real estate.
Disaster Area
The SBA also offers a loan program to help those businesses that were devastated by natural disasters in a disaster zone. Hurricanes, tornadoes, earthquakes, and floods can all devastate a community. Helping small businesses get back on their feet in the aftermath is beneficial to all, and there are government small business loans that can help through the SBA.
This article was originally published by Biz2Credit
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