The Small Business Administration(SBA) was established in 1953. 2. Result in a seemingly endless 8a application review process at the SBA and cost your business concern the ability to bid on and win federal set-aside 8a contracts. It provides loans with low down payments after a careful scrutiny of an applicant’s financial status.
13. The business concern’s current financial statements must exhibit positive net income, positive net equity and positive working capital at the time of application submission. The agency sought to ameliorate the consequences of the Great sought to achieve this through the establishment of a loan program to support businesses adversely effected by the Great Depression.
If a small business owner’s personal assets do not exceed $250,000, he or she can qualify for the 8 (a) business development program. Getting a piece of this lucrative market is within the realm of many smaller businesses if you are willing and able to play the government contracting game.
On Monday, the SBA completed its review of the legislation and announced in a Policy Notice that indeed the guarantee would go up to 90% effective March 16th under the various 7(a) SBA loan programs. The bad debts can be cleared with the help of financial units like banks.
Businesses that get loans at the time of getting started have the advantage of building their credit history as the business grows. The United States ‘Small Business Administration’, is a government agency that provides loan guarantees geared toward stimulating the expansion of business as well as funding for business transactions.