Why Women Entrepreneurs Should Give the SBA’s Small Business Loan Programs a Second Look

Landing a small business loan in the current economy seems to require a mixture of master skill and luck, not to mention an A+ credit rating and years of successfully running a profitable business. Women have to be particularly resourceful in searching for the right opportunities to start and grow a business.

The SBA backs a catalog of loan products that can present women business owners with a diverse mix of opportunities to access capital.

How SBA small business loans meet capital needs

In 2011, the government doled out more than $50 million in loans per day to U.S. small businesses. 7(a) loans are the most frequently used SBA small business loans, likely because the catalog of varied types of loans. The SBA’s varied selection of loan products targets the specific needs of small businesses.

If you want to launch a new business… The SBA provides funds to non-profit community organizations that lend to small businesses through the microloan program. For-profit small businesses can borrow up to $50,000 to start or expand. Business owners can use the small business loan to buy inventory and supplies, purchase furniture or fixtures, and machinery or equipment. Borrowers cannot use microloans to buy real estate.

If you need short-term, shifting capital… The Working Capital Line of Credit provides small businesses with a revolving credit line based on the size of your accounts receivables, up to $5 million in some cases.          

If you want to purchase new inventory or add staff in anticipation of the busy season… The SBA backs the Seasonal Line of Credit for businesses that operate year-round but that have a natural busy season. Business owners can use the credit line to buy additional inventory, add staff members, and take care of expenses that are above normal usage.

If you want funds to build or rehabilitate properties… The Builders Line provides a line of credit for small contractors to build or rehabilitate residential and commercial properties to put on the market. Borrowers must sell properties to people they do not know.

For a full catalog of loan products available through the Small Business Administration, visit the small business loans section of the SBA website.

If you need to get back on track after a natural disaster… The SBA backs low-interest disaster loans to help small businesses get back on track after droughts, hurricanes, or floods. This loan provides money to repair or replace lost inventory, furniture, fixtures, equipment and even real estate.

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