US government offers a number of federal small business loans for the small business entrepreneurs. The US government really wants to see the small businesses grow and that is why, it has created several specialized programs for small business owners. It is a fact that small businesses create more employment opportunities than large businesses and that is why it becomes important to allow small businesses to thrive in these tough economic times.
In addition to that, a huge number of people have recently lost their jobs due to the worldwide recession. Because they do not become successful in finding another comparable job, most of them choose to start up their own small business. In that case, they need finance to continue surviving and government makes its best efforts to help them out.
SBA or Small Business Administration is a US based government agency providing support to the small business owners. It has a good number of loan products available for the small business entrepreneurs. Unfortunately, many beginners find it difficult to get their loan approved, but once they have established their business, they will be able to pursue the loan without any significant problems.
SBA Community Express loan: The federal government loans start with SBA Community Express loan. This kind of loan is approved very quickly and requires minimum number of documents. The only drawback is that this kind of loan program provides only a limited amount of money.
Primary SBA loan program: This is a 7(a) loan that can lend you a high amount of business loan. You have to work with your bank to get loan guarantee from SBA. The requirements and application procedure of the loan are too time consuming and rigid. But you will be at an advantage as most of the banks will approve your loan if it seems to be get approved by the SBA. This means that the bank will not wait for approval or acceptance from the SBA.
The USDA loan program is made available for businesses in the rural area and through HUD program, the US government provides money to the community groups so that they can lend money to the small businesses. The government also provides grants to several small business centers which help the entrepreneurs in getting finance from the local lenders. Apart from these, the SBA also provides loan products designed for bonding, construction, exporting, revolving lines of credit and community development.