Government Business Loans

Businesses across the country are falling on hard economic times, and many are turning to the government for small business loans or grants. As of June 2009, the government was running 9 different business loan programs which we will give an overview of. There is money out there for existing and new businesses!

7 (a) Small business loans are the most popular loans provided by the Small Business Administration (SBA). These types of loans are intended for commercial businesses that are unable to get loans from private institutions. 7 (a) loans are provided by lenders that are known as participants. The body of participants is made up of most American banks and some non-bank lenders as well. The requirements for a 7 (a) loan are some of the easiest to be met relative to other types of government business loans since the language is very broad in terms of eligibility.

Another type of business loan is Business Physical Disaster Loans. The U.S. Small Business Administration may have funds available to help businesses and private, non-profit organizations make repairs needed due to a disaster. There is a similar type of government loan known as a Economic Injury Disaster Loan that can provide financial assistance to small businesses that suffer substantial economic injury within a declared disaster zone.

The other governmental business loans are known as Certified Development Company (504) Loan Program, Equity Investment (SBIC Program), Indian Loans Economic Development, Microloan Program, Short Term Lending Program, and the Military Reservist Economic Injury Disaster Loan Program.