Free help from SBA for small business loans

Why would anyone be interested in helping you for free?

The government benefits when it gives start-up loans to small businesses, and that’s why it helps.

  • O Statistics show that there are more small businesses than big ones.
  • Small businesses employ more than 50 percent of the workforce.
  • Small businesses contribute more than 50 percent of the country’s GDP gross domestic product.
  • O Small businesses are the main source of new jobs.

Starting a small business or growing your small business is not easy. Expert guidance and help are available free of charge from SBA. The U.S. Small Business Administration was established in 1953 and has business offices in every state.

SBA works with thousands of credit, education and training institutions nationwide. It does not offer grants, but advice. Government loans for small businesses are offered to many entrepreneurs. Check out the websites of state economic development agencies to see if they’re available in your state.

The SBA is only a guarantor of loans offered by banks and other private financial institutions. The credit institutions that agree to the terms of the SBA lending to small businesses through the SBA. In case of inability to repay the loan within the specified period; The SBA pays the lender the agreed guarantee amount, and the borrower must pay the SBA the entire amount.

Can the SBA help you?

A small business is a company that is independently owned and operated independently and is not dominant in its field of activity. SBA has regulations in place to determine if your business qualifies as a small business.

You can look up the SBA website or federal government regulations to find out if your small business startup loan or your small business loan qualifies for expansion. If your company has qualified, then the next question any lender would ask you is: Do you have a business plan?

Most lenders need a detailed description of the business you are going to start or expand. Search the SBA website for planning and consulting. The many things SBA helps you are:

  • Writing a business plan
  • Receive the loan
  • Marketing
  • Licenses and laws
  • Patents and copyrights
  • Sale to the government and abroad
  • Recruitment of employees
  • Purchase of the right equipment.

Notable among them are various small business loans for minorities, small business loans for women, and small business loans for veterans and young entrepreneurs. The various small business loan programs offered by SBA are.

Basic 7(a) Loan Guarantee

This is the primary business loan program. It is offered to those who do not qualify for loans through the normal credit channels. The conditions offered by the SBA are more flexible. Valid loans are those where the proceeds of the loan are used for sound business purposes. The term is 10 to 25 years, depending on working capital and fixed assets.

Credit Prequalification

Low-income borrowers, disabled entrepreneurs, exporters, and rural and specialized industries are the target of this program. Bad credit for small businesses doesn’t fall into this category. If the applicant has a loan income, then it is easier to secure the loan.

Certified Development Company (CDC), a 504 loan program

This is a variant of the Basic 7(a) loan to obtain real estate or equipment for expansion or modernization.

Micro Loan, a 7(m) loan program

This is available in select locations in most states. The SBA acts as a guarantor for organizations that have provided loans, technical assistance, and management for small financing. Non-profit daycare centers candidates also for working capital or the purchase of inventory or inventories.


Homeowners and property owners in disaster areas qualify for this loan program. The term of the loan is 30 years and the interest rate is below 8 percent for those who can get a loan elsewhere and less than 4 percent for those who can’t get credit elsewhere.

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wendy encarnacion

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