Learn How To Apply For Government Business Loans

Dependant on qualification specifications and the nature of the business, it is very possible that you may qualify for various agency and Government business loans. As well as the business loans that are established through the government, there are also many different “grants” available for new business and expanding exiting business.

Not only are there national and international funding options available for people who qualify under the set criteria, but there are also many local government incentive schemes, including some interest free loans, and grants, to assist with the business start up phase. There are research and marketing grants available on an international level, and these are in some cases managed cooperatively by governments of various and participating countries, to encourage business an industry growth.

Government business loans are usually available at a much more attractive rate of interest and are not as cumbersome as some private or banking lenders. The focus of the government is more about trying to ensure you succeed in your business with a view to potentially providing employment to others, thus boosting the local economy. The focus of private and public lenders is always on the return for them and their shareholders.

Private lenders will always want a bigger cut of the action as well. So not only will they charge a higher than average lending rate, but they could also want things like a position on the board, or equity share, etc. Government agencies will not generally request or expect this type of arrangement.

As a part of the Government business loans scheme you may be required, if you qualify and accept the terms of the loan, to attend or participate in local government agency training programs. These are usually designed around key areas of business, and could include things like marketing, and market research, import and export guidelines, taxation and budget planning, and a whole range of other things that they feel would be beneficial for you to learn. If this is a condition of a loan you are applying for, consider free and valuable training, and welcome it with open arms.

Although applying for and obtaining a government business loan may seem easier than the alternative, don’t think for a second that the government is going to hand out money to just anybody. There will always be checks and balances in place to make sure that you have taken care of the basic requirements, to show that your business is in fact likely to make a profit. After all, it is this profit and it alone that will make the difference between success and failure, and of course their ability to be rapid in full.

The Small Business Administration (SBA) is a very common place of interest for government business loans and there is a wide range available. The best course of action, before heading off to the bank with your business plan, is to contact your local branch of government or the SBA, to see what they can offer you in the way of a loan for your business. It could very well be the best call you have ever made.

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