How the SBA can jump start your small business

Say you’ve got a great idea for a startup or a small business but don’t have the capital to get it started. Before you turn to family or friends for financial support, first check out the Small Business Administration (SBA).

The SBA offers various programs to help you start or expand a business. It serves as your financial assistant when you’re searching for money to support your small business.

While the SBA doesn’t make direct loans to small businesses, it sets up the guidelines for such loans, which are actually offered by third-party partners such as community development organizations, micro-lending institutions and other lenders. If you meet the SBA loan qualifications, the SBA guarantees that these loans will be repaid, which removes some of the risk for lenders. Like all government programs, SBA guaranteed requirements may change, depending on the economy and the government’s fiscal priorities.

Another program is the SBA’s Venture Capital Program, which is a public-private partnership to help small businesses that need debt or equity financing. The SBA licenses certain investment funds and supplements the capital they raise from private investors with low-cost government-guaranteed debt.

Small business contractors also have access to the SBA’s Surety Bond Guarantee Program. This program helps those who can’t obtain surety bonds through regular commercial channels. The SBA agrees with a surety that it will assume a percentage of the loss if the contract breaches the terms of a contract with a project owner. These SBA guarantee bonds go up to $5 million, and in certain contracts, up to $10 million.

Travis Credit Union’s Business Services can help you learn more about the ways we can help grow your small business. Contact us today!

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