Government Help for Starting Businesses

Writing a business plan is one of the first steps in starting a business, and the government has many resources to assist you.

Starting a business is no small feat. You need to write a business plan, register for state and federal taxes, apply for necessary licenses and permits, secure financing and figure out how to market your products or service. Fortunately, the United States government offers plenty of help for people looking to start a new business.

U.S. Small Business Administration Loans

The U.S. Small Business Administration, or SBA, is a government institution that helps small business owners start new businesses by helping them secure loans from private banks and financial institutions. There are various types of loan programs the SBA can help you get into for starting your business, including the Basic 7(a) Loan Program; Certified Development Company 504 Loan Program; or Microloan Program. Go to your local participating bank or lending institution to apply for a U.S. Small Business Administration loan.

Tax-Exempt Bonds

The government also offers help to new businesses through tax-exempt bonds, which are debt securities issued by a state or local government on behalf of a private business. Tax-exempt bonds sell in an open market or are bought by investors or financial institutions. Interest income is exempt from state and local taxes, which lets a lender pass along the interest savings to you. Tax-exempt bonds are structured like conventional loans in that they are not grants; rather, you need to pay back the bond's principal plus interest to the bond.

Free Online Training

The U.S. Small Business Administration offers free online courses that cover a number of business topics, such as starting a business, writing a business plan, managing a business, financing a business and contracting. They have a variety of podcasts, online articles, videos and interactive courses that will help prepare you to start your business.

Local Counseling and Mentoring

The U.S. Small Business Administration also provides small business counseling, mentoring and training through a variety of programs. For example, you can get free access to SCORE, which is a nonprofit association comprised of 11,500 volunteer business counselors who are trained to advise new business owners on a variety of topics. The SBA also has nearly 100 Women's Business Centers, where women can get assistance and guidance when starting a business. Finally, the SBA has Small Business Development Centers in all 50 states that help small businesses with finances, marketing, production, organization, engineering and technical problems.

References

• Business.gov: SBA Loans
• Business.gov: Tax-Exempt Bonds
• SBA.gov: Counseling and Training