11 Nov
Small Business 101: Small Business Administration
Posted in Small Business 101 by Roger 2 Comments(Welcome to the third installment of Small Business 101, where we discuss all the information that the would-be small business owner needs to make a successful business. Today, we’re going to be taking a look at one of the other sources of information for future small business owners, the Small Business Administration. Now, try not to get too attached to their site; I expect you back here for tomorrow’s blog entry, after all.)
Q: What is the Small Business Administration?
A: The Small Business Administration (SBA) is the United States government agency that administrates to small businesses.
Q: Can you tell me anything else about them?
A: Alright, don’t have a sense of humor. The SBA was created by the US government to promote small businesses, established in 1953. It does many things for small business persons, from guaranteeing loans for small businesses to creating resources that help you learn more about creating a business.
Q: Wait, what was that about loans?
A: One of the major functions of the SBA is to guarantee loans made to small business owners. When a bank or other lender makes a loan to business owners, the SBA guarantees the loan, provided that loan meets its qualifications. The SBA backing makes the loan less risky for the lender, encouraging them to complete the loan. Thanks also to this backing, SBA loans are typically for longer periods of time, lower interest rates, and sometimes a larger sum of money than most private loans.
SBA Loans Can Help You Start a Business, Even If This Is All You Have In Your Pocket
There is another type of loan that is available though the SBA, disaster assistance loans. These loans can be for any non-farm, private property damaged in the course of a disaster. There are numerous qualifications that need to be met (as noted here) but such loans represent one method of getting your home back into shape after a disaster.
Q: Impressive. What else does the SBA offer?
A: The SBA does offer a great deal of resources for small business owners (as well as though who want to be small-business owners) through its website. One of the most impressive, to my mind, is their Small Business Planner, which provides resources for every step from planning a business to making it into a reality, and even how to get out of the business when you’re ready to retire.
There are also educational resources, for those who want even more information about starting their own small business. There’s a list of frequently asked questions about small business, which provides all sorts of facts and figures about small business (including the often cited fact that half of all Americans are employed by small businesses). And if you need more assistance, there’s links to local resources to lead you to additonial help.
As you might be able to tell, I am kind of psyched by all the stuff on the SBA website, and think it’s a good place to start all your small business research (well, after the amateur financier, that is). As I look more into growing this site into more of a business (as well as possibly starting another business, if I am so inclined), I’m sure I’ll spend plenty of time on their site, and I hope you enjoy this brief overview, as well. That’s it for now, have a great day!
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Martin
on November 12 2009
SBA loans are ideal for businesses under current market conditions. They have no covenants that must be regularly met. They are not subject to early termination at the whim of the lender. They have long amortization periods, and moderate interest rates. Everything a business owner needs.
Roger
on November 13 2009
They do seem like a pretty good deal. Certainly, if I find myself in need of money to expand a burgeoning small business, they are going to be one of my first stops. (I’m still trying to go through all the information that they have available for potential small business owners.)