If you have at some point undertaken to apply for a loan from your bank and been denied, then it is likely you have heard of the SBA in the course of your searching for alternative financing. If your loan officer was kind, then he or she probably gave you the details on how to apply for this. The SBA loan program was instituted by the government to aid the small business community who had need of small business loan bad credit. There are a few types of loans offered through the SBA providers that make it easier for people lacking collateral and satisfactory credit ratings access funding.

 

The guaranteed loan program is probably the one that is most popular. The SBA simply guarantees the bulk of the loan and the lender, who may include your bank, can then suffer less risk exposure in lending funds to you. The money does not come from the government, just the lender. In order to get such a loan, your application must satisfy both the requirements of the lender and the SBA. This means approval for the loan can take a while as separate assessments are carried out, unless you apply through a preferred lender. The SBA runs the venture capital program in a similar manner when funding small businesses with major funding needs through private investment funds. For much smaller funding needs businesses can apply to the microloan program.

 

The SBA also runs a bonding program. Certain small businesses when bidding for contracts are required to provide sureties. This serves as protection for the employer offering the job that should the contracted business not complete the job as agreed upon, he will be compensated. The amount of money for such sureties can be sizable and difficult for a small business to raise. Applying to the bonding program allows of the SBA to make the guarantee allowing the small business to take up the job. Click small business loan with bad credit for more info.