Wednesday, July 23, 2008

Business.Gov - Small Business grants guide

Basically, Federal and state governments do not provide grants for starting and expanding small businesses but a limited number of grants for very specialized business activities, it also offers a wide-variety of low-interest loans and venture capital financing programs to help small business owners to grow their businesses.

The complete guide
provides you with a detailed explanation of federal and state loan, grant and venture capital financing programs available for your small business.

A few federal programs provide grants to small firms engaged in scientific research and development .

The Federal government's SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs award a specific percentage of Federal R&D funds to qualified small businesses - Eleven federal departments participate in the SBIR program; five departments participate in the STTR program awarding $2 billion to small high-tech businesses.

SBIR/STTR programs encourage small firms to undertake scientific research that helps meet Federal R&D objectives, and have high potential for commercialization if successful.

SBA financial assistance guide:
  • SBA provides a number of financial assistance programs for small businesses including 7(a), 504 and disaster assistance loans.

Basic 7(a) Loan Program

7(a) loans are the most basic and most used type loan of SBA's business loan programs.

Why 7a?
  • Section 7(a) of the Small Business Act authorizes the Agency to provide business loans to American small businesses.

Who provides 7a loans?

  • Lenders participating with SBA in the 7(a) program.

Although not all lenders choose to participate, most American banks as well as some non-bank lenders do.

7(a) loans are provided by lenders who choose to structure their own loans by SBA's requirements.
  • Lenders apply and receive a guaranty against payment default - The lender and SBA share the risk that a borrower will not be able to repay the loan in full.
Commercial lenders make and administer the loans.

More on 7a loans

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