Starting a small business is almost everybody’s dream not only to be
financially free and be the own boss of their time but also to make
their life-long dream a reality. Unfortunately, not all of them are
lucky to have the much needed capital to push thru with it. Long time
savings are lending from families and friends may not be enough to have
the needed capital for supplies, equipments and other materials. Hence;
many opt to go to different financial institutions like banks, private
lending, government giving grants or government small business loans. Loans
from banks and other private lending institution usually offer loans
with higher interest rates. They would usually require business owners
to submit pertinent documents about the business assets and the owner’s
asset to be able to assure that they have something to go after in case
the debtor fails to repay. The waiting time for the release of funds in
both firms usually take months. Both are very strict as well when it
comes to monthly payments, interest and penalties thereof.
On the other hand, the government is also a good
source of financial assistance to push thru with your small business.
Government grants are very ideal for small businesses but this type of
funds is very hard and rigorous to get thus; if you want a faster and
less interest bearing loans, opt for the government small business loans. This
type of loan will require you to go to United States Small Business
Administration or the US SBA for the necessary papers to pass. You would
still avail this from regular banks but the good thing is it has an
interest way lower than the prevailing bank interest and the time and
manner of payment is still under the discretion of government rules.
This will give your business more flexibility in running the operations
rather than always on guard of your cash for loan payments.
have listed below the eligibility requirements small business owners
should pass to avail of the government small business loans:
1. Small business should mainly be for profit.
2. Size requirements of the business in the respective industry
3. Ability to pay the loan backed up by the business plan and other financial papers.
4. Business should demonstrate lack of internal sources of funding.
business owners have the will to succeed and passion for business,
finding financial assistance would be least of their problems because
there are various firms to offer these. The most important part is
weighing which financial institution offers the lowest interest, maximum
loan able amount, payment terms and lowest risk.