BASICS OF THE SMALL BUSINESS ADMINISTRATION
The goal of the Small Business Act of 1953 was to help small business. Basically, the SBA guarantees loans so the banks are willing to take the risk in loaning money. In other words, the bank is gambling with the government’s money when extending the loan because it’s guaranteed by the SBA. The SBA doesn’t loan the money to any business. Again, they guarantee the loan is paid to the bank in case the small business fails to pay it. The bank may risk 20% of the loan amount. There are some people, or businesses, who are good matches for an SBA loan. Not everyone qualifies.
Are there small business grants from the SBA?
No. The SBA guarantees loans. It doesn’t grant money.
Where do I go?
Visit a Small Business Development Center (SBDC) or a Women’s Business Center (WBC) in the area.