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Business Loan

To start with a business it is seen that our capital is less than required. To come out the problem of finance, the United States government agency The Small Business Administration (SBA) provides support to small businesses. According to the agency, their mission is to maintain and strengthen the Nation’s economy by aiding, counseling, assisting, and protecting the interests of small businesses and by helping businesses and families recover from economic and other disasters. This agency works under the authority of the Small Business Act of 1953.

The agency is also responsible for providing loans to homeowners and renters that have been victims of presidentially declared disasters. Presidential declarations automatically make disaster assistance available to victims if they meet qualifications. The Department of Agriculture and state governors also have the authority to request declarations on areas affected by disasters in their jurisdictions. SBA also gives license private “Small Business Investment Companies” to help the financing and management of the small entrepreneurial businesses in the United States. One of the most popular uses of SBA loans is for commercial mortgages on buildings occupied by a small business. These programs are chosen because most bank programs, while having similar payments and rates, require borrowers to refinance every five years. Types of guaranteed business loans through SBA includes: Loan Guarantee Program,Fixed Asset Financing Program , Micro Loan, Program Business Development Program and Economic Development Program

SBA is criticized for aiding tax shelters for owning the property and having the business rent the property from the owner.