SBA commercial lenders are mostly banks that receive a guarantee from the Small Business Administration, that in case of borrower default, the bank will receive the bulk of their capital back. The SBA was established by President Eisenhower through the signing of the Small Business Act in the summer of 1953. Fortunately, there are resources on both federal and state taxes and their implications for business. Businesses are also eligible for long-term, low-interest loans to recover from declared disasters.
A business may borrow against several different types of asset, including premises, plant, stock or receivables. Congress designated SBA as the agency responsible for overseeing small business contracting across the federal government. The bank will probably wish to see the business’s accounts, balance sheet and business plan, as well as studying the principals’ credit histories.
Your willingness to learn more about your field may be the difference between success and failure in the business world. The instability and ambiguity caused by Continuing Resolutions make it difficult to agency acquisition staff to plan effectively for small business utilization.
The Small Business Jobs Act of 2010 permanently increased the maximum size of these loans from $2 million to $5 million. These programs are the 8(a) Business Development Program and the Small Disadvantaged Business Certification Program. Small Business Development Centers provide management assistance to current and prospective small business owners.
They can tell you if they think you are ready to apply for a SBA loan or if you should go and update some financial information or update your business plan to make it more sell-able. We recognize that small business is critical to our economic recovery and strength, to building America’s future, and to helping the United States compete in today’s global marketplace.