On Opportunities: My Rationale Explained

Advantages of the Small Business Administration (SBA)

The Small Business Administration or SBA is there offering their services to potential small business enterprises in terms of providing for the loans that they need to help their business going through its beginning stages. What is SBA? Management, advocacy, procurement, and financial aid are the four main areas of assistance that the Small Business Administration, an American agency organized in 1953, is responsible for providing, to help beginning small businesses in their start-ups or in the continuation of their business. When the SBA does its functions, there is no interference brought about by the federal government. Business loan programs, investment programs, disaster loan programs, and bonding for contractors, are the other services provided by the Small Business Administration for small businesses.

The most important service or program offered by the SBA is their business loan program. So, for small businesses looking for funding sources for their business, one of the best options to take is the SBA which offers different programs to suit the needs of every small business.

SBA does not offer direct loans. What they do is simply provide guidelines for the loans that you will apply for. You still need to go to finance institutions to apply for a loan but the SBA will vouch for you that the loan will be repaid. Applying a loan from the SBA, in reality, is applying for a commercial loan, custom made according to the requirements of the SBA with its seal of approval. However, you will not be able to get the loan if you have other sources of financing on reasonable conditions and terms. SBA policies are also subject to change depending on the Governments fiscal policies.

Venture funding for small business is another service that SBA offers to small businesses and this is done through a partially public and partially private partnership. These funds which are privately owned are managed by the SBA and licensed and regulated by them. They have reasonable terms and conditions but SBA may choose to limit investment to legitimate small business only unlike other venture capital firms.

SBA offers a bonding program to help small venture contractors acquire surety bonds which are signed by the project owner, the contractor and the surety. Failure on the part of the contractor to finish the venture project will leave the surety responsible for it.

Here we can see the advantages of having the SBA. This agency has helped many small businesses become successful over the years. The SBA is the agency to approach if you are a small business enterprise or if you are a venture contractor on a small business project needing immediate financing for your project, because they have services and programs designed to help small businesses like yours.

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