Government Loan Options

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Government Options For A Small Business Loan

  • Grants From States And The Government: These type of loans are funded by tax dollars and very hard to get. They also tend to lean toward granting funds for medical and scientific research only. So don’t get your hopes up.

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  • Bridge Loans: These type of loans are many times used for commercial purposes. If your new business is going on a piece of real estate property do you need money to close the deal for a short-term until you can get permanent financing? Caution: a loan of this type will typically be more expensive, in terms of interest rate and length of the loan. But, unlike banks and credit unions, you will get the money you need fast if you qualify.
  • Venture Capital Loans: These loans are a lot like “equity financing” and will often provide “seed” money if you have strong collateral to back up your promise to pay the loan back.
  • Small Business Loans (SBA): Many times, the SBA is the giant in the room and use this slogan: “We are here to help small business to grow.” They also do their best to push everybody else out of the way. But, what they don’t tell prospective borrowers is that the money you receive is not government funds. That comes from the bank or credit union. SBA only guarantees the loan for the lender and that alone is the lender’s only protection that they are happy to take.

venture-capital_loanIf your new business is projected to be in a small community with a smaller population than a large major city, the best loan on the planet that very few people know about (now you do) is the United States Department of Agriculture (USDA). They have a program that offers the business and home mortgages in town.

Note: If you are planning to move forward on your desire to become independent and own your own business with instant business loans, good for you. However, you should know this. If you can’t get the money you need and have to defer to credit cards, personal savings, and the 3 F’s as mentioned in an earlier paragraph, you should be aware that according to a recent National Federation of Independent Business study, 79 percent of small business owners used credit cards to start or grow their business. In other words, the bottom line is that about 4 out of 5 small business owners will or might be stuck in the mud if something goes haywire with the business. The same goes for borrowing from any of the 3 F’s. You might investigate Microloans on your computer. They have an interesting program worthy of your notice.