Many small business owners are unaware of an incredible opportunity available to them. The Small Business Administration, or SBA, is a federal agency meant to provide support to small businesses. Typically this support comes in the form of loans or disaster relief. Mortgage Loan Place can help small businses owners of all shapes and sizes to learn more about their options when it comes to SBA Loans.
<>More on Small Business Loans - The Facts</> In July 1953 Congress passed the Small Business Act, which created the SBA. Since then the SBA's job has been to "aid, counsel, assist and protect, insofar as possible, the interests of small business concerns." In its 55 years of existence the SBA has come under attack numerous times and was almost eliminated more than once, specifically in 1996 and during the current Bush administration, although Congressional resistance has kept the program alive. As mentioned before, support for small businesses by the SBA typically comes from loans. For the most part the SBA doesn't issue loans itself but rather guarantees against default portions of loans made by private lenders. The SBA does, however, issue loans directly to borrowers on occasion. These loans, Disaster Relief Loans, are automatically made available after presidentially declared disasters.
Unlike FHA guaranteed loans, SBA backed loans are not necessarily for borrowers with bad credit who can't get a regular bank loan. They usually aren't used for startup funding either. SBA loans are in place to help small businesses borrow more than they otherwise could, by lowering monthly payments, creating longer loan terms, and loosening affordability calculations. Numerous small business loans available through private lenders can be backed by the SBA, including the MicroLoan Program, the Loan Guarantee Program, the Economic Development Program, the 504 Fixed Asset Financing Program, and the 8(a)-Business Development Program. To find out more about these programs and whether a SBA loan might be right for you contact us.