SBA - Program

02.06
Technical Assistance (Training & Counseling)
SBA Entrepreneurial Development
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SBA Entrepreneurial Development

02.01

Mission

The Office of Entrepreneurial Development’s mission is to help small businesses start, grow, and compete in global markets by providing quality training, counseling, and access to resources.
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Highlights

Resources

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LOAN GIVER INFO

01.15
America :
SBA - Small Business Administration
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SBA - Small Business Administration

01.13

The U.S. Small Business Administration (SBA) is an independent Agency of the Executive Branch of the Federal Government. It is charged with the responsibility of providing four primary areas of assistance to American Small Business. These are: Advocacy, Management, Procurement, and Financial Assistance. Financial Assistance is delivered primarily through SBA’s Investment programs, Business Loan Programs Disaster Loan Programs, and Bonding for Contractors.

SBA’s Business Loan Programs
SBA administers three separate, but equally important loan programs. SBA sets the guidelines for the loans while SBA’s partners (Lenders, Community Development Organizations, and Microlending Institutions) make the loans to small businesses. SBA backs those loans with a guaranty that will eliminate some of the risk to the lending partners. The Agency's Loan guaranty requirements and practices can change however as the Government alters its fiscal policy and priorities to meet current economic conditions. Therefore, past policy cannot always be relied upon when seeking assistance in today's market.

Federal appropriations are available to the SBA to provide guarantees on loans structured under the Agency's requirements. With a loan guaranty, the actual funds are provided by independent lenders who receive the full faith and credit backing of the Federal Government on a portion of the loan they make to small business.

The loan guaranty which SBA provides transfers the risk of borrower non-payment, up to the amount of the guaranty, from the lender to SBA. Therefore, when a business applies for an SBA Loan, they are actually applying for a commercial loan, structured according to SBA requirements, which receives an SBA guaranty.

In a variation of this concept, community development organizations can get the Government's full backing on their loan to finance a portion of the overall financing needs of an applicant small business.

SBA’s Investment Programs
In 1958 Congress created The Small Business Investment Company (SBIC) program. SBICs, licensed by the Small Business Administration, are privately owned and managed investment firms. They are participants in a vital partnership between government and the private sector economy. With their own capital and with funds borrowed at favorable rates through the Federal Government, SBICs provide venture capital to small independent businesses, both new and already established.

All SBICs are profit-motivated businesses. A major incentive for SBICs to invest in small businesses is the chance to share in the success of the small business if it grows and prospers.

SBA’s Bonding Programs
The Surety Bond Guarantee (SBG) Program was developed to provide small and minority contractors with contracting opportunities for which they would not otherwise bid. The U.S. Small Business Administration (SBA) can guarantee bonds for contracts up to $2 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels.

SBA's guarantee gives sureties an incentive to provide bonding for eligible contractors, and thereby strengthens a contractor's ability to obtain bonding and greater access to contracting opportunities. A surety guarantee, an agreement between a surety and the SBA, provides that SBA will assume a predetermined percentage of loss in the event the contractor should breach the terms of the contract.
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Apply fof the Loan

01.12

In order to be successful in acquiring a loan, you must make a written proposal. Your goal is to convince the loaner as best you can. Failure to do so may result in not getting the loan and jeapordizing your company.

The best start with your written proposal is to start with an introduction, such as a cover letter. In a concise manner, introduce yourself, your business, the amount you wish to be loaned, the purpose of the loan, and how you plan on repaying the money. Imagine that someone is coming to you asking for a large sum of money. Would you be willing to loan money to someone who will waste the funds and have a low chance of repaying it?

The loaner may not be as familiar with the business as you are. Be prepared to answer questions and show that you know what you are doing. You need to make a good impression as a capable and understanding entrepreneur.

You will want to present a number of information to your loaner. Be prepared to show them things such as:

  • Business & Personal Financial Statements
  • Business & Personal Tax Returns
  • Business Plan with Projected Budget
  • Plans of Repayment

Also be prepared to show some means of collateral. This includes any assets and property. It is very unlikely that a loaner will agree to a loan without some form of collateral. Collateral is property acceptable as security for a loan or other obligation. If you for some reason cannot pay the money, collateral will be taken instead.

Communication is key when dealing with loaners. Keep them updated with how your business is fairing. Bring them good and bad news. Especially when you are not able to make a payment. Explain the reason why you are having trouble and any actions you are going to take to fix the problems. Many lenders are flexible, they want to see that you are actually planning on
paying them back.

Lastly remember to make a good impression on the people you are dealing with, you may not get a second chance. Dress nicely and have a neat appearance. Your educational or other background may be looked at by the potential investor. They want to know that they are dealing with someone that is trustworthy and professional.

http://www.businessloan.org/18.html

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Business plan for getting loan

01.12

A business plan is a plan that sets ou the future strategy and financial development of a business. This plan precisely defines what your business is, its goals, and is the equivalent to a personal resume. The plan usually covers a period of several years to show the progression of a business from startup to profitability.

The use a business plan is of paramount importance in obtaining a business loan. Without having done the proper research to show that your business can reach profitability, almost all avenues of business loans will turn you down for a loan. Since the plan provides specific information about your company, and presents this information in an organized manner, including information on how you intend to repay debt, a good business plan is a crucial part of a loan application. Furtehrmore, it also shows that you are serious about your business.

http://www.businessloan.org/24.html

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Business Loans Introduction

01.08
Business loans are an important part of a company's survival. Money is essential to making companies grow and in making investments.

A key point of funding that many businesses take advantage of is personal savings. With personal savings there is no one to repay a debt to, so issues such as interest and monthly payments become moot. Consider it a personal-favor business loan. The obvious risk is that if your business does fail, it is your personal funding that is taking the hit.

Business Loan Org brings you vital information on the financial management of your business. There are a broad number of ways to acquiring the necessary funding, including the United States Small Business Administration (SBA). They provide numerous programs to help businesses in various situations.

While money is a large part of keeping a business intact, there are many other important aspects such as knowledge, experience, and organization. Keeping a business plan and following a schedule can be the differance between failure and success. When loaning your funds, take a second and think of how much you will need and why. The cost of borrowing money can be very high in the end. Some things to think about include:

  • How badly do you need the money? Will it be to startup or expand your business? Or is it just to ensure things go smoothly?
  • Are you in great risk if you don't receive the loan? Will your company fall without this boost in funding?
  • What state is your business currently in? Growing, stable, falling? Businesses that are not fairing as well will not have as good funding terms.
  • How capable is your leading management? Without a key focus on what you are willing to do with the money can lead to not getting a loan. Loaners are very keen on knowing what is going to be done with the money, and how you plan on repaying it.

We hope that the information we provide on this website helps you make an intelligent decision with regards to your business.

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