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What is the SBA?

The SBA is an organization that was set up for the purpose of helping new companies and organizations get off the ground. It is administered by the United States federal government. The U.S. Small Business Administration offers grant money to assist entrepreneurs and new companies get started. If you are a business owner and need some funding to start up your company, then you should get your financing needs met through the SBA. This will ensure that your company has a fighting chance in competing against other businesses in the same industry.

There are many ways to receive financing through the SBA. There are several hundred programs offered through the SBA that will provide you with money for many different purposes. Most small businesses can use one or more of these loans to meet their funding needs. Here are some benefits of receiving financing from the SBA:

  • Financial assistance can be used for business purposes. Some financing options can even help you get your first contract. When you apply for SBA loans and business loans, they will review your business plan along with your business plans for tax credit viability and impact to your community. This makes it easy to get the financing you need to start your business off.
  • Financial assistance can also be used for purchasing real estate. There are two types of SBA loans – one for new and another for used equipment. You can use the money you receive for buying property, equipment, and even office furniture. You can get a low interest rate loan or a mortgage loan through the SBA that has a fixed term. Another benefit of getting financing through the SBA is that you will not have to pay any tax on the money you receive. These are just some of the reasons why the SBA is such a great lender to work with for small businesses.
  • The SBA offers a variety of long-term loans to business owners. They have a long-term loan program called the Disaster Assistance Program (DAP) that allows a business owner to get emergency funding when their company gets a hit. For instance, if there is a fire or flood at a local fire station, a fireman can step up and help rescue employees and customers. This kind of disaster assistance can last up to 90 days, so it’s important to make sure you know where your disaster assistance loan is coming from, what your repayment terms are, and what your insurance coverage is.
  • There are a variety of lending programs available to small business owners. There are standard loans, as well as different types of unsecured and secured business loans. You can get a long-term unsecured business loan from the SBA or you can get one based on collateral. Some lenders base the interest rates on the risk of repayment, so if you are unable to repay them, they will go after your collateral. If your business succeeds, then you can use the interest money to pay back the loans.

In addition to what is the SBA, there are other financing sources besides private investors and government agencies. Many financial institutions offer funding to start a business, including local banks. They also offer loans to help expand existing businesses or to purchase businesses that are in distress. You should contact your local bank and see what financing programs are available to you.

What is the SBA?

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