Federal Help for Small Businesses
The main federal administration that helps small businesses is the Small Business Administration, SBA. This administration helps small businesses to grow by providing instruction on important subjects such as how to set up a business's legal structure, guides on how to operate common small business types and funding programs to help entrepreneurs get their business off of the ground.
Other People Are Reading
-
Small Business Loan Programs
-
The SBA offers a number of small business loan programs. Rather than directly lending money to business owners, the SBA guarantees third-party loans. This means that the federal government assures banks and other lenders that small business owners will repay their small business loans. Loan programs include the 7a Loan Program, which is for businesses that need special help, such as those run on the side by military personnel, the CDC/504 Loan Program, which is for businesses whose plans incorporate long-term community development and the Microloan Program, which is for businesses that need relatively small sums to cover working capital.
Surety Bonding Program
-
The SBA's bonding program helps small businesses to get surety bonds. A surety bond is a type of three-party agreement that businesses use to ensure that an important task is completed. In the case of the SBA's bonding program, contractors, small business owners, can get contracts to perform important services by having the SBA take some responsibility for completion of the project. If the contractor does not keep his side of the contract, the SBA is liable to the project owner.
-
Venture Capital Programs
-
The SBA works in conjunction with a number of Small Business Investment Companies, SBICs, to provide equity financing for small businesses. Different from loans or lines of credit, equity financing gives money to small businesses in return for partial ownership of the company rather than return payments of specific amounts of money. SBICs differ from other venture capital programs in that, in return for loans from the SBA, they agree to abide by SBA regulations that make them focus their funding on small businesses that qualify under SBA guidelines.
Small Business Information
-
In addition to its various funding options, the SBA also provides important information for entrepreneurs. The SBA has guides on how to establish the legal identity of a small business, how to run various common types of small businesses and how to write a business plan.
-
