Congress created the Small Business Administration (SBA) over half a century ago to help small companies get started, expand, and prosper. The determining factor is whether your business is a small business according to federal guidelines and for what purposes you’d like to use the funds. National Association of Government Guaranteed Lenders (NAGGL) – The NAGGL is the only national trade association serving the private-sector lenders that participate in the SBA business loan programs.
The 504-loan program provides long-term loans for fixed assets while the 7 (m) loan program called ‘micro loan’ provides short-term loans worth up to $35,000. Office of Field Operation’s Business Opportunity Specialists (BOS) who conduct the day-to-day marketing to 8(a) applicants and provide business development for 8(a) certified firms.
Besides this, you can get loans from financial institutions, insurance firms, and mortgage bankers. The program’s advocates argue that it provides assistance that reaches many who otherwise would not be served by the private sector and is an important source of capital and training assistance for low-income women and minority business owners.
Strategic Sourcing, Bundling, and Contracting Consolidation continue to be major concerns for small business opportunity and expansion. However, there are also some companies that offer business administration grants to those interested in setting up their own small businesses.
Third, both the number of SBA 7(a) loans funded and the total amount of 7(a) loans guaranteed have declined. Proceeds of loans guaranteed under this program may not be used to purchase fixed assets, but can be used to finance the acquisition and production of goods and services being exported, or the accounts receivable of export sales.