Obtaining Government Small Business Loans

Nothing could be more fulfilling than having a business, even a small one, to call your own. At this time, it is possible to venture in your own business with the help of the government. Even if you are just part of the average income class, government small business loans are just within your reach.

Indeed, the federal, state and local government could help you realize your business goals. However, you must remember that the assistance does not directly provide the loans and grants to business owners like you since government grants are just extended to non-commercial organizations. They just offer their services to non-profit institutions in fields such as education, scientific research, medicine and technology development.
So how are business loans possible through the government?

Government small business loans are offered through a wide array of financing opportunities coming from selected banks and lending companies. These financing programs are established to help businessmen especially those who are starting small but are planning to develop their operations. The financing services offered by such government-backed companies include enterprise capital, low-interest loans and other economic and scientific development grants.

The government provides the so-called, guaranty, to these lending banks and companies which provide loans to small-scale business owners. And even if they extend their assistance to those who are not eligible for traditional loans, the risks involved on the lender’s end are still reduced. Sounds too good but still is possible since “guaranty” is a portion of the loan amount promised to be paid back to the lenders if the entrepreneurs failed to pay the loan.

Are you interested? Here now are the baby steps to start your very own business using this financing scheme.
The first thing that you need to do is to look for these local lending bank and institutions where you could start the business loan. These companies have all the forms and information that you will need for these loan programs. Once you have applied for the loan, you never have to slog yourself through the process because these companies will work hand in hand with the government during the application process. It would also be best if you could look for state and local non-profit and government organizations because they can make direct deals; hence, you need not seek a bank’s financial assistance.

At present, there is a host of government small business loans available. In each commercial bank or lending institution, there is a unique application process as well as eligibility pre-requisites. Most of these companies could also ask you to submit documentations that will go well with any loan packages. Some of these documents that you need to be ready are as follows:

• Loan Application Form
• Resumes
• Business Plan
• Personal Credit Report
• Income Tax Returns (personal and business)
• Bank statements
• Financial statements
• Collateral
• Accounts Receivable and Accounts Payable
• Other legal documents, such as business licenses and registrations, contracts with third parties, commercial leases and franchise agreements

So if you are eager to start and grow your own business, you can check out the internet for these government-supported business loans now.