Where Do I Apply for a Government Business Loan?
You can apply for a government business loan in the state you live in by contacting the bank that handles your personal or business financial needs.The United States Small Business Administration is the primary source of government loans. Most banks participate in this federal government loan program, but if your bank is not involved, it can direct you to one that does participate.
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Federal Government Loan Programs
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Before you apply for a government business loan, it is important to understand its loan process. The federal government, which is the primary source of government business loans, does not loan money directly to your business. You can apply for a government loan at a commercial bank or local nonprofit intermediary that is certified by the U.S. Small Business Administration and participates in its program. The government provides a guarantee of up to 85 percent of the loan amount provided by a commercial bank, which helps in reducing their risk.
Where to Apply for a Business Loan
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The best source to apply for a government loan is a Small Business Development Center located in your city. These centers are the outreach program of the U.S. Small Business Administration. Centers are located in all U.S. states and most larger cities. It's website provides contact information for your local center (see Resources). A counselor will assist you in preparing for a business loan, and when prepared, he will help you find and apply for a government loan that is appropriate to your needs.
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Applying Through a Bank
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The most common government loan is offered by a commercial bank that participates in the loan programs provided through the U.S. Small Business Administration. Your counselor with the Small Business Development Center will assist in finding a bank and act as an intermediary to help you apply and meet the conditions required by the participating bank. There are many banks that specialize in providing loans to a business with the government guarantee.
Applying for Micro Loans
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If a small loan is what you need, the government provides a micro loan program. You apply for these loans at local nonprofit financial intermediaries funded by the U. S. Small Business Administration. Contact and application information is provided on it's website (see Resources). Most communities have one of these special government loan organizations. Your counselor with the local Small Business Development Center will assist you in applying for this type of loan.
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