The US Small Business Administration provides loans and other assistance to those who want to start a small business. A small business is defined as a privately-owned business that has a small workforce. Its annual receipts should not exceed a specific amount stipulated by the SBA.
The Small Business Administration was founded in 1953. It was founded to help small entrepreneurs after the Great Depression and World War II. The Small Business Administration was established by the Small Business Act. In 1954, it had started guaranteeing bank loans and granting business loans to small entrepreneurs. The Small Business Investment Company Program established in 1958 gave funds for small venture capital investment companies. From 1964, the SBA started giving loans through the Equal Opportunity Loan EOL program to remove poverty.
The SBA has a wide range of programs to help small entrepreneurs today. All types of small business entrepreneurs can get SBA loans. Specific sections of society like women, veterans of the armed forces, victims of natural disasters and minorities are provided with special loans. The SBA also offers management assistance and assistance with international trade for small entrepreneurs.
The SBA gives loans through approved lenders. Approved SBA lenders are banks and financial institutions authorized by the SBA to grant loans. There are banks who give SBA loans across the USA. An example is SBA loans Greeley CO provided by banks in Greeley Colorado. Active and expert lenders get an SBA certificate as SBA’s Certified and Preferred Lenders Program. The SBA delegates full lending authority to these preferred lenders. The SBA renews the status of preferred lender every two years.
The SBA offers a wide range of loans and tailors them according to the needs of the small business. The SBA offers a basic loan for up to $750,000, the 504 SBA loan granted to those who can create local jobs through their enterprise, community adjustment and investment programs, Low doc loans for entrepreneurs who have a good character and personal credit, home equity loans and microloans for up to $25000. The SBA also has loans for industries and trades. A government-backed guarantee is provided by the SBA for part of the loan.
To get an SBA loan, the entrepreneur needs a business plan, financials for two years and tax returns for two years. The business plan must show that there is great potential for selling the product or service. The plan should also show that the enterprise can generate employment in the local community.
SCORE is a network of volunteer business mentors who are experts in their profession. The network is a business resource partner of the SBA. SCORE runs low-cost workshops and offers expert mentoring to aspiring and current small business entrepreneurs. The network has over 300 chapters across the USA.
The SBA has helped millions of Americans realize the American Dream from 1953 and has helped preserve free enterprise and the competitive spirit of business enterprises in the USA.