The government has long been dependent on small business owners for providing employment to millions and revenue to the treasury. These ventures are the backbone of the economy. Business needs capital to flourish. Lending institutions like banks are the primary source of funds. The financial assistance provided for business from banks and other lending institutions is for the acquisition real estate for the enterprise and can also include any improvements on the property, such as construction and renovation or leasehold improvements. The loans can also be utilized for the purchase of equipment, furniture, fixtures and machinery. Money from the loans can also be employed for building up the inventory and adding to the working capital of the enterprise. Currently the government does not provide grants or financial assistance directly for setting up and expanding new businesses. But the SBA or US Small Business Administration does provide guarantees to lenders for providing loans to small businesses all over the US. Some states also provide grants for new ventures. Contrary to popular belief SBA loans under Preferred Lenders Program, LowDoc Program, SBAExpress or CommunityExpress require the SBA approval and funding within 2 days. The funding does not require much documentation and paperwork. SBA does not consider itself the last resort for funding of small businesses. The financial assistance from SBA loan programs offer cash flow financing with much longer terms than conventional bank financing and also limit how much interest the lender imposes on the borrower.
Federal and state governments do provide some wide ranging financing programs for start up of small businesses and for their expansion. Some of the financial schemes on offer are:
- Micro finance: Ranging in amount $5000-$35,000, the funds can be used for any business-related purchases.
- SBA finances: Private sector banks and lending institutions offer business loans to small businesses that are guaranteed by the SBA.
- Franchise Financing: Funds are specially made available for financing recognized (mostly nationally known) franchises.
- Development Financing: Long term, fixed rate business loans for small enterprise are made available for the acquisition of major fixed assets like land and building.
- Import Export Schemes: Finance programs for exporting of US goods and services are widely available through a series of loans, guarantees and insurance programs.
The government has made more preferential financial assistance available to companies owned by women and also to businesses owned by sections of society like minorities, veterans and US military service personnel. Approach your local bank or lending institutions for more information on. Waite Park, MN residents can avail the services of lending institutions in the area that offer affordable financing.
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