The United States Small Business Administration (SBA) provides multiple loan programs. The loans do not come from the SBA. Small business owners still receive loans from banks and other lenders. The SBA guarantees some of the loaned money back to those lenders if the small business owner is unable to repay it. As a small business owner, applying for an SBA loan program could really help to grow your business. Here, you’ll find reasons to apply to an SBA loan program.
You Want To Grow Your Small Business
Small business owners are almost always looking to grow their businesses. The SBA can help you to do that. They can help you get the money you need to expand your business. If you need money to hire more employees, you can get the cash flow required for payroll or to hire a head hunter. If you need money to produce more product, the SBA can help. If you need more money to move to a larger office, the SBA can help. Money is always a factor when trying to grow your small business. This is why the desire to expand your business is a fantastic reason to apply to an SBA loan program.
Overcome Natural Disaster Losses
Natural disasters destroy more than just homes. They can destroy entire businesses as well. The SBA Disaster Loans program can help. You must provide proof that the disaster caused your small business physical and/or economic damage. A 660+ credit score is required as well. If you meet all of the requirements, the SBA Disaster Loans Program can help you receive a loan up to $2 million dollars. If your company has suffered due to a natural disaster, you should consider applying for an SBA loan.
Raise Capital For Equipment
Regardless of what type of small business you own, equipment is always a necessity. Struggles to come up with money for necessary equipment is very common in small businesses. Not having this money could be detrimental. If you own a growing forklift company and you need more forklifts for your expanding customer base, you really need those forklifts. You cannot continue growing as a business without the equipment your customers want. The SBA’s Microloan Program can assist you in getting the money to purchase your necessary equipment. This is yet another reason for you to look into applying to an SBA loan program.
Finance Exporting Activities
Your small business needs to expand with their exportation in order to expand as a whole. The SBA has multiple loan programs that can help you to do so. The SBA’s Export Loan Programs are especially great for you if you’re looking to start an internet business and export your products internationally. Receiving the money to grow your business through export activity is relatively easy with an SBA loan program. This is a good reason to apply for one today.
Preparation For Unplanned Expenses
It’s always a good idea to prepare for unplanned expenses as a small business owner. You want to have money aside if things go south. With the SBA CAPlines Program, you have between 5-10 years to repay the money lended to you. If you are accepted for this loan program, you are able to receive up to a $5 million dollar loan. This would give you enough capital to buy a small business to accelerate growth. Ensuring that your business is covered for the future is one of the best reasons to apply for an SBA loan.
You will always need money as a small business owner. You need it to grow your small business. Money is necessary if your company is hit with a natural disaster. It’s essential to purchase equipment. You need it to expand upon your export activity, especially if you’re looking to expand internationally. Financing is very necessary for preparing for the unknown as well. The SBA provides loan programs to aid in receiving money for all of these situations. Therefore, the above situations are all reasons why you should apply to an SBA loan program.