Business Loans — Quick Small Business Loans
As defined by the Federal Small Business Administration (FSA), a small business is a business which has fewer than 500 workers and less than $500 million in annual sales. The other 7(a) loan programs include:
Special Purpose Banks: Provides loans for business start ups, new businesses and other American Indian tribes. Lenders that provide these loans also provide services such as: application processing, commercial lending, credit risk, business development and more. This category of small business loans are considered "high risk."
Commercial Banks: Commercial banks are regulated by state banking boards and are held responsible for providing safe, stable, reliable lending practices. These types of loans are usually used to purchase real estate or to finance business start up ventures. Lenders that offer these types of loans are typically banks with the exception of one bank that provides financing exclusively to start ups and newer businesses. This category of small business loans are usually called "self-employed" because they are offered by banks with no affiliations to a particular business.
Government Sponsored Small Businesses: Provides financing for business start ups, commercial properties, and more. These types of loans are typically offered by public agencies such as the Small Business Administration. Some examples of such government backed companies are the following: the USDA, U.S. Department of Agriculture, U.S. Department of Education, U.S. Department of Labor, U.S. Army Corps of Engineers, U.S. Environmental Protection Agency, U.S. Department of Transportation, U.S. Environmental Protection Agency, U.S. Federal Housing Administration, U.S. Department of Energy, U.S. Department of Interior, U.S. Department of Veterans Affairs, U.S. Internal Revenue Service, U.S. Department of Health and Human Services and the Internal Revenue Service.
Government Sponsored Enterprises: Offers low interest loans to small businesses and for businesses seeking to expand. These loans are offered to businesses that meet the criteria to receive financing through either the SBA FSA, Fannie Mae, Freddie Mac, or Fannie Mae. This category includes a variety of government agencies.
In addition to these categories there are also other types of business loans, but these are the most common. Businesses can obtain loans from a variety of other sources including banks, brokers, investors, and other types of institutions. When obtaining a business loan, be sure to research the lender thoroughly to ensure they are licensed and that their loan terms and conditions are not only suitable for your business' needs, but also the needs of the borrower as well.
The small business loans discussed above are only a few of the options available to business borrowers. There are also government backed businesses, such as the USDA, which are not regulated by state banks and are approved to obtain loans through a federal program known as "small business cash advance," also known as a SBA personal loans. These loans require only a valid identification number and a business owner's Social Security Number.
With the availability of the Internet, it has become easier than ever before to search for small business loans. To learn more about the lending process, search for an online loan review site and find out what lenders in your area are offering. Once you have found the right lender for your specific requirements, the process will be quite simple.
Most lending companies that offer business loans do not require any credit checks, only a valid government ID. The lender will review your financial statements and then determine if the amount you require is appropriate for your business needs.
Depending on the type of business loan you need, you may have to pay all or part of the money back, depending on the terms of the loan and the lender's approval process. If you are looking for a business loan, be sure to read carefully the small business lending agreement before you sign it. You may find some agreements require a higher interest rate than the normal interest rates for a personal loan.
In order to help you get the best rates on small business loans, it is a good idea to shop around. Compare quotes from a variety of lenders in your area.
