If you are planning to set up a new business and are in search for a capital to use, the first option that you must consider is the small business administration loan, or to be precise, you should request for an SBA assisted loan. The application for this kind of business loan is normally done in the bank.

The SBA (small business administration) guarantees the loan to the bank. Hence, in the event that the borrower fails to pay the dues, the SBA will pay a fraction of the total loan amount. However, this doesn’t mean that you will be free from your obligation as you’re still legally responsible for the loan. [Read more…]