SBA Financial Programs for Small Business
SBA is committed to helping small businesses, which are the backbone of the nation’s economy, thrive. Working closely with a wide range of lending partners across the country, SBA has developed a number of financial programs that address the various needs of small businesses.
Evaluate Your Financial Needs
Before seeking financial assistance, ask yourself the following questions to evaluate your business’s financing needs:
- Do you need more capital or can you manage existing cash flow more effectively?
- How do you define your need? Do you need money to expand or as a cushion against risk?
- How urgent is your need? You can obtain the best terms when you anticipate your needs rather than looking for money under pressure.
- How great are your risks? All businesses carry risks, and the degree of risk will affect cost and available financing alternatives.
- In what state of development is your business? Needs are most critical during transitional stages.
- For what purposes will the capital be used? Any lender will require that capital be requested for very specific needs.
- What is the state of your industry? Depressed, stable, or growth conditions require different approaches to money needs and sources. Businesses that prosper while others are in decline will often receive better funding terms.
- Is your business seasonal or cyclical? Seasonal needs for financing generally are short term. Loans advanced for cyclical industries, such as construction, are designed to support a business through depressed periods.
- How strong is your management team? Management is an important element assessed by lenders.
- How does your need for financing mesh with your business plan? If you don’t have a business plan, make writing one your first priority. All capital sources will want to see your business plan for the start-up and growth of your business.
Banks and other lending institutions offer a number of SBA guaranteed loan programs (7(a) Loans, CDC/504 Loan, Microloan) to assist small businesses. While the SBA itself does not make loans, it does guarantee loans made to small businesses by private and other institutions, encouraging these loans to qualify more applicants for loan approval.
Technology Programs to Keep You Competitive
As a business owner, it is vital that you understand and use advanced technologies. Technology can help increase business efficiency and even expand operations.
Accounting software. This is important, even if you have your own accountant or bookkeeper. Accounting software allows you to see your profits and losses at a glance. It can also help you design and maintain a budget for your business.
Planning software or tools. A calendar system is a must. There are many online planning systems that can be utilized to help you keep your calendar organized. Find a system that meets your business’ needs and be sure to stick with it.
Time tracking software. A time tracking device will help you determine what tasks result in a profit and what tasks do not. This will help you determine what tasks can be eliminated, outsourced, or improved. If you’re looking at software that requires a fee, ask for a free trial first to make sure it’s the right software for you.
Email management. As a business owner, you probably use several email accounts to manage the various aspects of your company. If you streamline these emails to one account, you’ll be able to stay organized and abreast of your emails.
Mobile internet access. Access to the internet on your mobile device will not only make your life easier, it will also help you maintain a positive reputation for your business. For example, if you are able to follow up with a client by email immediately after a meeting, you will be showing that you are accessible, timely and professional.
Once you decide which types of technology are right for you and your business, you’ll be on your way to being more organized and efficient than ever.