Finding business funding is difficult for all entrepreneurs. The problem is not that there are not enough business loans available. There are tons of business lenders and finance sources available. The issue is simply that access to these loans is limited to those with perfect credit scores and a large personal net worth. Thankfully, there are government loans for business too. These business financing solutions are a bit easier to secure than traditional bank loans. Learn all that you need to qualify for government business loans below.
If you want to secure a government business loan, you cannot have the personal resources available to provide your own business financing. Simply put, you cannot be independently wealthy. If you have the money to start your own business, why would the government want to lend you anything? This is one of the most basic program requirements you need to meet in order to have access to the 7(a) loans offered by the Small Business Administration.
In order to qualify for government loans, you must be starting a small business, not a large corporation. There are SBA size standards that 7(a) loan applicants are expected to meet. The exact startup requirements for size will vary by industry. Be sure you do your research to figure out whether or not you meet business size requirements. Otherwise, you may not be eligible for 7(a) SBA loan and will need to look for other business lenders to consider.
In order to qualify for business loans from the government, you have to be a for-profit business. This should be an obvious requirement. There are other grants for nonprofits available through the government. But in order to qualify for an SBA loan in particular, you need to be opening a for-profit business. If you are not, consider other government loans that may be available to you.
Starting Or Expanding
SBA government loans are only available to entrepreneurs starting or expanding business operations. If you are hoping to secure an SBA 7(a) loan to help your business recover after a disaster, you are looking in the wrong direction. There are other government loans available for that purpose. As long as you are looking for startup funding or expansion funding, you are one step closer to meeting SBA loan eligibility requirements.
In order to get government loans, you have to be conducting business operations within the United States. This is an easy requirement for most entrepreneurs to meet. If you plan on opening a business in the United States, you meet this requirement. This does not meant that you cannot expand business operations internationally in the future. But in the beginning, you must be starting a business in the United States if you want to secure government funding for business.
If you are an entrepreneur, you have no doubt struggled to find out where you can secure business startup financing. There are plenty of predatory lenders out there, but obviously you want to steer clear of those. Bank business loans, on the other hand, are extremely difficult to get approved for. This leaves you with one other option – government loans. Government loans for business are hard to come by too. But, as long as you meet the government loan eligibility requirements mentioned above, you have a shot at securing the startup funding you need to finance your business. Use this post to help you figure out whether you qualify for an SBA loan. Then, you can start the lengthy 7(a) loan application process as soon as you are able.
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