Borrowing for Your Small Business
Small Business Administration Loans
If you are having difficulty obtaining money through the more traditional avenues, you can look into getting a loan from the U.S. Small Business Administration (SBA). Please note that the SBA only provides assistance if you are unable to get reasonable, approved financing through traditional channels. Most SBA loans are, in fact, made through banks and other private lenders, which administer and service these loans while not exposing themselves to default risks.
Two Most Common Types of Loan Programs
Guaranteed Loans—These are actually loans by banks and other private lenders that are guaranteed by the SBA, which enables you to obtain needed financing. You must put up collateral to secure the loan. With this type of loan, you deal with the bank, and the bank deals with the SBA, although you will need to provide information and do paperwork in order to apply for the loan. Your accountant should be able to help you with these tasks.
Direct Loans—In some cases, if all else fails, you may be able to obtain a loan directly from the SBA. These loans are very difficult to get, and depend—among other things—on the amount of money that is available for lending. If you are lucky enough to be approved, a bank will usually be involved in servicing the loan.
In addition to the above, there are often other programs available through the SBA. These programs are often dependent on new legislation and may target minorities, the disadvantaged, specific industries, firms attempting to recover from a natural disaster, etc. Consult your local bank or SBA office for more information.
Investments and Insurance products:
|NOT FDIC INSURED||NOT BANK GUARANTEED||MAY LOSE VALUE|
|NOT A BANK DEPOSIT||NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY|
Securities and advisory services are offered through Santander Investment Services, a division of Santander Securities LLC. Santander Securities LLC is a registered broker/dealer, Member FINRA and SIPC and a registered investment advisor. Insurance is offered through Santander Securities LLC or its affiliates.