One of the best ways to obtain start-up financing for a small business is the SBA 7(a) Loan Program. This is especially true for companies desiring commercial bridge loans. Initially the SBA concentrated on providing direct loans to small businesses, guaranteeing bank loans and making loans to victims of natural disasters. This integration provides an opportunity for the various divisions to share a unified database and ensures proper business communication within the organization.
Although in its bureaucratic past this wasn’t always the case, today the SBA is a preferred lender when small privately owned businesses decide to either sell their business or want to borrow additional capital to expand their business. Namely, there is no change to the submission process to get a SBA guarantee loan number.
As in case of personal loans, businesses too must ensure to pay back the borrowed funds within the stipulated time. And like the federal government, many states have set up technical assistance centers and Web sites to provide information to potential suppliers as well as small business set aside programs.
The equally popular U.S. Patriot Express Loan Program for veterans and their spouses or windows, goes to $500,000 and is also guaranteed now to 90%. According to one Libertarian scholar, there is no factual reason to base policies on the idea that small businesses are more deserving of government favor than big companies.
For bridge loans that are secured by the assets of a business, the repayment period is generally 5 years. If the financial institution does not find your corporation eligible enough to repay its credits, it will often ask you to keep your personal assets as a guarantee to repay the money.