Find A Loan For Your Home Based Business (executive business coaching)
No commentsBy Michael Laleye
There are plenty of loan options out there for new home based businesses. It is not really true that there are millions of dollars in free government money for small businesses. However, there are some nifty loans you can take advantage of. Since a business is an investment that you will have to put money into to get anything out of it, taking out a loan s a good idea.
SBA Loans are issued through the Small Business Administration. They help small business owners to get their businesses off the ground and expand. You can get loans through private banks and financial institutions. SBA is the biggest financial backer of small businesses in the country. They have a large portfolio of business loans and other products for small business owners.
SBA has loans that have very low interest. New and expanding businesses are eligible for them. While SBA is not an actual lender it is a guarantor of loans that are made by private banks. These banks and financial institutions have agreed to abide by SBA’s guidelines.
In order to apply for SBA loans you go to a local bank or lending institution that participates with SBA. SBA loans are actually commercial loans and they are structured on guidelines of SBA ad is given an SBA guaranty. You can get a list of SBA lenders that will have participating institutions on it from your local SBA office.
If you are starting a business in a rural community you may qualify for an USDA Rural Development Loan. The U.S. Department of Agriculture offers Business and Industry Guaranteed Loan Program. These loans are very much like SBA loans. A guarantee of up to 80% percent of the loan is made by a commercial lender. You can use the loan proceeds for working capital, machinery and equipment and some forms of debt refinancing. Just like with SBA loans you will have to go through a local lender. Finding one should not be very difficult.
There are also federal loan programs that you can take advantage of. The type of business that you have will determine whether or not you are eligible for specialized federal loan programs. If you are engaged in federal transportation contracts and are a small and disadvantaged business you might be able to get U.S. Department of Transportation’s Short Term Lending Program.
Venture Capital Financing is also available. The Small Business Investment Companies or SBIC was started in 1958 by Congress. SBIC’s offer venture capital financing to small businesses. They are privately owned and finance companies that meet a certain criteria. A company is defined as small by the SBIC if it has a net worth that is $18 million or less. The tax net income for the previous two years cannot be more than $6.0 million. You will need to have a professional business plan to present to SBIC when you contact them.
There is financing out there for your small business. Where there is a will, there is a way. Find the best way to finance your home based business.
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Thursday, October 30th, 2008 at 3:30 am and is filed under business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
