Federal Aid for Small Business – Small Business Administration (SBA) and other Agencies
The most popular agency to which you will be directed for finance is the Small Business Administration, (SBA). The SBA too offers help with sharpening your business plans while offering advice related from planning to implementing to controlling your business while also offering guidance on utilizing different grants available. If required, you can also avail necessary training through the SBA. The only problem when approaching the SBA is that they help only sole proprietary businesses. If you wish to start a venture under partnership, SBA won’t be able to help you. For more information on SBA, visit their website.
The SBA is supported by the Federal Government as well as by several banks and private money lenders. Based on the nature, needs, and economic status of an individual, the SBA has several programs to support small businesses. An entrepreneur can get up to $150,000 for starting a business. SBA has a special program for women entrepreneurs. This program offers up to $250,000 for an existing business, controlled by women entrepreneurs.
Among other federal aids for small business is the Small Business Service (SBS). This program caters to people who are not able to produce any collateral and hence, cannot get loans anywhere else for starting their business. However, the business plan has to be very stable for the loan to be approved at SBS. One cannot approach directly SBS that offers unsecured loans up to $250,000. If you wish to avail this loan, you need to contact an authorized lender who will guide you through the process.
Besides the above two government agencies, there are several other agencies that help in funding your small business. In addition, the new Obama government is injecting another $15 billion to support the small businesses as per the “New York Times", dated March 16, 2009.
Even with so many federal aids for small business, there is still a significant percent of unemployment in the US. Is the government’s help not sufficient? The section offers a take on the issue.
Image Credit: Wikimedia Commons/US Government.