As a small business owner, you have a harder time receiving approval for loans and lines of credit than large corporations do. When traditional banks turn down your applications, it doesn’t mean that you cannot complete your projects. Instead, turn to the following Small Business Administration programs to find the funding you need to expand your business.
Community Advantage Program
One of the newest SBA loan options is Community Advantage, which is intended primarily for new businesses that serve communities in need. The loans can be up to $250,000, and you can use them for a variety of expenses, including payroll, research, and other critical parts of your business’s early operations. As part of the application process, the SBA reviews the likelihood of your business plan’s success as well as your credit history. However, do not panic if your credit score is low or if you are still building it. The benefit of the SBA is that it works with traditional banks to receive lower interest rates for the score that you already have. Still, you need to show that you are good at running your business and that the agency is not taking too much of a risk with you. Keep in mind that nonprofits do not qualify for the Community Advantage program.
Express Bridge Loan Pilot Program
If the Community Advantage program doesn’t fit your needs, perhaps the Express Bridge Loan Pilot Program does. The loans given out through this program help businesses recover from disasters. To qualify, your business must be located in an area where the president declared a disaster within the past six months, and it must have been adversely affected by the event. Furthermore, you can’t apply for this program unless you have already borrowed money through the SBA. Loan amounts are much smaller than those given out through the Community Advantage program, with the largest being $25,000. Still, if your small business is struggling with a disaster’s aftermath, these loans give you the financing you need to rebuild and get back on track to have a successful year.
When you don’t know where to turn for funding, explore these and other SBA loan options. Whether you need extra capital to get your business started or to start again after a natural disaster, this government agency has programs that fit your needs. All you need to do is find the right one and start your application today.