An Introduction to Small Business Administration Loans-Personal and Small Business-Wistuo Finance

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(Free-Press-Release.com) September 26, 2007 -- An Introduction to Small Business Administration Loans-Personal and Small Business
Source: http://wistuo.blogspot.com/2007/09/introduction-to-small-business.html


If you're in the market for a small business loan, you'll need to understand the services the Small Business Administration (SBA) does -- and does not -- provide.

SBA Overview

Established in 1953, the SBA is an independent Agency of the Executive Branch of the Federal Government charged with the responsibility of providing four primary areas of assistance to American small business, which include: 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. The SBA's Business Loan Program is one of its significant areas of financial assistance.

The stated mission of the SBA is to "maintain and strengthen the nation's economy by aiding, counseling, assisting and protecting the interests of small businesses and by helping families and businesses recover from national disasters."

The SBA Web site at www.sba.gov is an excellent resource for small businesses. It's very well organized, easy to navigate, and provides a wealth of information.

SBA Loan Programs

The SBA offers a variety of loan programs to assist small businesses. It's important to note, however, that the SBA is primarily a guarantor of loans made by private lenders and other institutions, and not a lender itself. The SBA's several business loan programs supplement the ability of certain lenders to provide both long- and short-term financing to small businesses that might not otherwise qualify for loans through traditional lending sources. The SBA may not guarantee a loan if a business can obtain funds on reasonable terms from a bank or other source.

There are three basic types of SBA Loan Programs, and several special-purpose categories of Section 7(a) loans, including:

The Basic Section 7(a) Loan Guaranty Program;

The Section 504 Certified Development Company (CDC) Program;

The MicroLoan, a Section 7(m) Loan Program.

The different sections under which SBA loans may be obtained refer to sections of the Small Business Act.

Basic Section 7(a) Loan Guaranty Program

The Basic Section 7(a) Loan Guaranty Program serves as the SBA's primary business loan program to help qualified small businesses obtain financing when the business might not be eligible for business loans through normal lending channels. It's the SBA's most flexible business loan program. The customers for this program are startup and existing small businesses.

Loans under the 7(a) Program are provided by lenders who ................

More Information to: http://wistuo.blogspot.com/2007/09/introduction-to-small-business.html

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