Government Loan For Small Business

I am surprised with the difficulties people encounter, and time spent, in trying to obtain a government loan for small business. Here are all the details on where to apply and what is required to obtain government funding for small businesses.

One clarification before we get started. You may have seen advertisements for “millions in free government money for small businesses” or something similar if you send someone some money they will provide the details. Sounds too good to be true and it is. The reality is that the government does not provide free money loans, what the government does do is provide low interest loans, that they guarantee a portion or all of to the lenders. Also offered are venture capital programs and grants for specific and specialized businesses. See small business grants for more information about grant programs. OK, on with the details of government loan for small business.

Government Loans For Small Business
The majority of the government loans for small businesses are facilitated through the Small Business Administration (SBA). There are a number of small business loan programs available from the SBA depending on your business type, needs, location, ownership, etc. The SBA, however does not loan money directly to a business. What the SBA does is guarantee loans that are provided through banks that agree to follow the SBA guidelines for the loan. Therefore what you are actually doing is applying for a loan, from your bank, which follows the SBA guidelines and therefore receives the SBA guarantee. Therefore you can contact your favorite banks and see if they take part in the SBA loan program. Here are the available loan programs and the eligibility requirements.

The remaining government loans for small business are spread out across several programs.

If you own a farm the U.S. Department of Agriculture (USDA) provides a government loan program similar to the SBA program.

If you are in involved with federal transportation contracts the U.S. Department of Transportation provides a loan program.

If you are a trucking company the Environment Protection Agency (EPA) has a small business government loan program that helps companies pay for technologies to reduce emissions.

Here is a link to the remaining government loan options.

Did not qualify for a federal loan? Do not despair, there are other options for small business finance. State and local governments also offer small business loan programs. You can find out more about these programs by contacting a local Small Business Development Center.

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