Government-Assisted Loans: Is There Such a Thing?
While the Federal U.S. Government doesn’t dole out grants for startups or businesses looking to expand operations, it does provide many loan programs to provide support if you want to start your own business or wish to further grow your existing one.
For example, if your business is having difficulties qualifying for a traditional small business loan or short-term business loan at a bank, there are programs in place devised to further help your business get the funding that is required to meet your goals.
How do they Work?
Basically, according to USA.gov, these programs involve creating and applying for a specific “loan package” with a participating lender. What’s more, the Federal Government will guarantee a certain amount of the loan and repay the lender if you default. In turn, this “reduces the risk to the lender and increases the likelihood of a loan being offered to a borrower.”
While a viable option for many small businesses, some of the programs worth looking into include:
- GovLoans: This program offers many types of loans available for your business including Micro Loans, Economic Injury Disaster Loans, Business Injury Disaster Loans, Small Business Loans, to name just a few initiatives for your business.
- U.S. Department of Agriculture (USDA): Devised for rural businesses, this loan programs is for for-profit businesses, non-profits, cooperatives, federally-recognized tribes as well as public bodies.
- Small Business Administration (SBA): From SBA-guaranteed business loans and free business counseling to home/business disaster loans, the SBA offers a plethora of services to help support your small business.
Some other loan programs worth checking out include:
- The Small Business Investment Company Program (SBIC)
- Small Business Innovation Research Program (SBIR)
- State and Local Business Assistance
Starting a business or wishing to expand your existing one is not always easy. While there’s additional information to understand, visit www.usa.gov/funding-options for all the details and see if it’s a measure you wish to take for your business.