Government business loans are always useful when you don’t have the proper resources for funding your start-up business project. Making your dream come true and starting business on your own can take lots of preparation and money. Self-funding is expected by any money lender you can get, this includes the Government, too. Government loans have limited options and even so, there are many agencies that offer government loan programs, they all require strict options. Usually they need a personal finances review, business plan and your management skills. Obtaining loans from the Government requires special knowledge and strategy of these government sources.
Before you see if you are eligible for the government business loan programs, you need to prepare for this government financing. You must prepare and get together the document of your personal finances. This document must include tax returns, bank statements about spending and income. Liabilities, assets (which includes automobiles and real estate), and associated debt also need to be documented. Keep on mind that your credit report will be reviewed and evaluated.
Writing the proper business plan can be tricky and you may need assistance. You can get this help by the US Small Business Administration for free. A direct way to get the assistance fast and easy is through its centers for small business development. You can find these centers located anywhere in the US states and cities. You can get information about these centers through the official website (sba.gov).
Government loans for starting up your own business are not something that is given on regular basis and to everyone. Small Business Development Center’s counselor is assisting the finding of government loans after your business plan is completed. The counselor is in a position where he can find and identify all loan programs which are associated and meet your needs. There are many government business loan programs available for you to start a business. You can find them described on the official SBA website. The most common loan program which can be found on this website is the 7(a). This kind of a loan is certified by the banks of America that participate in these programs.
Different government loans are environed with special circumstances for which you may be eligible for. These programs include government business loans owned by veterans, minorities and women. There is even a special loan program for businesses located in distressed and rural communities.
Micro Loans for starting small businesses
These are the most commonly given loans to those who want to start a small business. The US Small Business Administration is offering these loans through local non-profit organizations founded and certified by the Government. They offer short-term and small loan that is very useful for starting a business. These small loans average about $13,000 and are used for equipment, inventory, supplies and capital. There are other micro-loan programs that can give small-business a boost of $50,000. These kinds of programs are all described on the official webpage.
We must say that government loans are completely different from government grants because the money needs to be refunded over the years.