Government Loans

Government loans can be used for most purposes by a small business owner when business financing is required. For example, government loans can be used for the purchase of real estate to where the small business will take up residence. A second scenario could be using government loans for construction, renovation or leasehold improvements. Another use for government loans might be for a small business to purchase furniture, fixtures, machinery, or equipment. Very often government loans are needed for the procurement of inventory and for working capital.

Government loans are made available by the state and federal government to help out small businesses. Government loans are valued because they demonstrate the knowledge that small businesses are the backbone of this country. The SBA (Small Business Administration) is part of the government that can provide government loans to small businesses.  The SBA has programs to help small businesses get approved for government loans. With one of their government loans programs, the SBA will guarantee part of the loan with the lender. This increases the likelihood that a small business will get approved for government loans.

The SBA offers various types of government loans. The 7A: SBA Loan Guaranty is a type government loan where the SBA guarantees loans to small businesses from the private sector. Certified Development SBA 504 is a government loan model where small businesses are financed with long-term, fixed-rate financing for major fixed assets, such as land and buildings. Another method of providing government loans is through Federal Export Assistance Loans. In this case, government loans are employed for export financing of U.S. goods and services through a variety of loan, guarantee, and insurance programs. Micro Loans are another form of government loans, where $5,000 to $35,000 in small business loans are awarded that can be used for any business purpose. Please contact Strong Business Credit for more information about government loans.