If you don’t know your credit score or want to monitor it consistently, several personal finance websites, including NerdWallet, offer free credit score access. Track your progress and open more doors for financing your business.
For instance, Melissa Kobus, founder of Gloss Salon & Day Spa, told us that she found that starting a profitable small business takes money—money that banks aren’t always willing to lend a new company.
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The Small Business Administration (SBA) is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is “to maintain and strengthen the nation’s economy by enabling the establishment and viability of small businesses and by assisting in the economic recovery of communities after disasters”. The agency’s activities are summarized as the “3 Cs” of capital, contracts and counseling.
Running a business can be complicated. Successful businesses to evolve as they adapt to the market, serve their customers, and build their brands. Some businesses appear to be more… Read More December 28, 2015
The SBA guarantee reduces the risk for lenders, allowing lenders to make loans to businesses that they would otherwise not lend to. For example, businesses with insufficient down payments or collateral for conventional bank loans may be able to qualify for a loan that’s backed by an SBA guarantee. Similarly, borrowers usually receive loans with lower interest rates and longer repayment terms than they would with conventional commercial loans.
And if you have periods where you’re struggling, a small business loan can help you cover your operational expenses until things pick up and you can stand on your own again. This includes funding payroll, buying supplies, and paying vendors, just to name a few.
The U.S. Small Business Administration is a federal agency committed to furthering the growth and development of small businesses. One of the ways it does this is by guaranteeing loans to businesses made through lending partners nationwide, though the SBA does not lend directly to businesses themselves. Rather, they set guidelines and guarantee a percentage of the loan, increasing the possibility that businesses will receive the funds they need.