Small businesses are thriving these days and funding a start up is getting easier that it has been in recent years, but that doesn’t mean finding funding available for small businesses is going to be a walk in the park. There are a number of different business funding solutions out there now, and each one is different. The toughest part of finding funding is going to be figuring out what you’re eligible for, which options are the best for you and your business, and how you’re going to obtain it. Here are two types of funding related to the Small Business Administration and what you need to know about them.
SBA loans
One small business funding option is a Small Business Administration loan. This type of loan does not come straight from the SBA, but they do play a large role in facilitating loans between participating private lenders and borrowers who meet certain criteria. SBA loans are only available to borrowers who cannot find funding at reasonable terms elsewhere. Essentially, the SBA provides the private lender with a guaranty, should the borrower be unable to pay his or hers loan payment.
Government grants
Another option is business funding grants. Again, the grant does not come from the Small Business Administration itself, but you can use it as a resource for finding government grants. There are a number of different reasons you might be eligible for business funding grants, for example, if your business does research, but there are very strict guidelines for them. You should do your homework to see if any of these grants apply to you and your business.
You should make sure that you do plenty of research and preparation before you approach a lender looking for funding. Have any other tips? Let us know in the comments.
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