8th Nov 2009 by Joseph Pousada
In the United States small business loans that would not otherwise be made by private financial institutions are made because of the Small Business Administration (SBA). There are separate guidelines that the government uses to determine whether your business qualifies as a small business and it even varies depending on the industry your business operates in. The loans are not made directly through the SBA but through your lending institution. There are several types of loan programs and they have their separate applications and requirements. (Please see below referenced links to get more details on the different loan programs.) The programs are designed to provide a measured loan guarantee which lowers the risk involved in making the loan and encourages private investment in small businesses. In addition, you may want to contact the lending institutions you would like to approach to confirm if they will participate in SBA loan programs and if they have a specific format for the business proposal.
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