Government Small Business Loan Grants
Commencing a small enterprise may be a good move in your life, but this dream may not become a reality unless you have a sufficient amount of money to start it all off. Though you have your own savings as well as family and friends to borrow money from, either of this may not be enough at all.
Thus, you may only have one option in mind—and that is to resort to various financial establishments, such as private lending, banks or government small business loan grants.
It is a fact that loaned money from private lending companies and banks normally offer high interest rates. In addition to this, they usually necessitate you to pass important documents and leave you waiting for several months before they could approve your request. Also, they have strict rules regarding penalties, monthly payments and interest rates.
Conversely, there are also available government sb loan grants offered to all potential and existing business owners. Even though government grants are recommended for small business entrepreneurs, they are quite hard to obtain. Hence, if you want a quicker and low-interest bearing means of capital, then you may want to consider getting government small business loans.
Government loans necessitate you to pass your application to the United States Small Business Administration (US SBA). Furthermore, you may obtain this type of loan from banks though with a higher interest rate.
The following are the eligibility criteria in getting government sb loan grants.
• You should prove your business’ lack of internal funding sources.
• Your small business should be principally for profit.
• You must demonstrate your ability to pay back the loaned amount as well as show your business plan and other pertinent financial documents.
• Include the size requirements of the venture in the appropriate industry.