Out How to Score Fast Small Business Loans
In the past, small
business owners generally had one option if they were in need of funding in a
timely manner. They had to walk into their local bank and speak with an advisor
about taking out a loan. They usually had to come up with some sort of collateral,
which was often their house or the business itself, and had to wait on a decision
by the underwriter, sometimes for days on end. Now with many companies that specialize
in fast small business loans this process has become much more simple.
that process is still viable for a business in need of money, there are other
options available now for companies. One thing that business owners can do is
apply for a loan through the government. The Small Business Administration (SBA)
is an independent agency of the federal government which was enacted in 1953 to
assist and protect the interests of small businesses all across the country, in
an effort to strengthen the United States economy. There are several programs
of financial assistance that are available for small businesses, including 504,
7(a), and disaster assistance loans.
The 504 program is designed for long
term use within a community to encourage economic development, often to revitalize
a distressed area. Businesses can take advantage of this program to secure long
term, fixed rate loans that can be used for the purchase of land or buildings.
In most cases, a 504 project involves a loan that is secured with a lien from
a private lender such as a bank, which covers up to 50% of the cost of the project,
and an additional loan that is secured by a junior lien from a Certified Development
Company, which is a nonprofit corporation that is set up in the community by the
SBA to act as a liaison between the SBA, private sector lenders, and local small
In the 7(a) loan program, a small business can take out a loan
from a participating private lender. The program gets its name because it comes
from section 7(a) of the Small Business Act, which is the piece of legislation
that allows the Agency to provide loans to small businesses. What separates this
program from the business going directly to the bank is that the SBA guarantees
a portion of these loans in case of default. In return, the lender structures
the loan based upon SBA's requirements, such as the terms and interest rate.
disaster assistance loans are available for small businesses that are located
in a declared disaster area. Low or no interest loans are often made available
in a timely manner to businesses, and even private individuals, that are affected
by things such as hurricanes, tornados, tsunamis, and other natural disasters
that devastate and area.
So, with the Small Business Association, fast
small business loans are available for those who qualify, whether it's through
the 7(a) program, the 504 program, or in the event of a natural disaster, the
disaster recovery program. This is often an underutilized resource available to
small businesses, so they are encouraged to apply and see which of these programs
they might qualify for.