Small Business Administration

The Small Business Administration also known as SBA is put in place to assist small business owners start or improve their businesses by offering financial assistance. Many lenders require principals with 20{c5af7dfcac74c6fe30f917948b7a3c799c460c768962769cd460a3bd41500ead} or greater ownership in the business to provide a personal guarantee. A personal guarantee puts you and your personal assets on the hook for payments if your business is unable to make them. This allows the business to borrow without putting up other collateral, but risks diluting the principals’ equity share in case of default.

The San Antonio SBA District Office covers 55 counties within the region, including Bexar, Travis, and Williamson. Small Business Administration (SBA) is the final party that guarantees 100{c5af7dfcac74c6fe30f917948b7a3c799c460c768962769cd460a3bd41500ead} of the loan to both lenders. He or she will give importance to the individual’s personal financial statement and see if the loan can be secured against personal or business assets.small business administration

Write your business plan: Your business plan will determine your ability to secure financing for your business, so you need to take it seriously. Typical transactions include funds needed to purchase a business, expand an existing business with equipment financing and improvements and purchase owner occupied real estate.small business administrationsmall business administration

Providing access to capital has been one of the SBA’s critical strategies in meeting its objective to drive business formation, job growth and economic expansion particularly in underserved markets since the agency was created in 1953. Small business lenders may waive the personal guarantee requirement if the business has strong business credit scores and revenue.

Overview: Obtaining loans through traditional lenders can be difficult for new businesses – even if they have the SBA’s backing – because lenders prefer to loan to businesses with established financial histories. Graduate from this program and you will have acquired the skills necessary to research, develop and manage a small business, grow an existing business or virtually anything else related to successful entrepreneurship.