Depending upon what type of business you are in, you may qualify for a government guaranteed loan through the U.S. Small Business Administration or the USDA Business and Industry lending programs. These programs are referred to as:
- SBA 7(a) loans
- SBA 504 loans
- USDA Business & Industry loans
The U.S. Small Business Administration (often referred to as “SBA”) does not make direct loans to small business. They set guidelines for loans that are made by its partners (banks and lending institutions). The SBA guarantees that these loans will be repaid. This eliminates some of the risk to the banks and lending institutions. When a business applies for an SBA guaranteed loan, it is actually applying for a commercial loan that is structured in accordance with SBA requirements.
The United States Department of Agriculture Business and Industry (Often referred to as “USDA B&I”) loans work similar to SBA loans, but are made with the intent to improve, develop, or finance business and industry that will provide employment and improve the economic environment in rural communities.
We will help you figure out what option will best suit your business. Contact any of our lenders for more information about these programs.