Government Financing

Most government financing programs have been overhauled, scaled-back or completely eliminated.  However, there are still a couple that have managed to survive:

The Small Business Administration (SBA) 7(a) Loan Guarantee Program--Started in the 1950s, the Small Business Administration (SBA) provides loan guarantees to certain types of businesses.  The SBA does not lend directly.  All loans are actually provided through local lenders with loan guarantees provided by the SBA to qualifying businesses.  This is the longest-running and perhaps most reliable source of financing for start-up and emerging-stage companies.  For more information click here.

The SBA Microloan Program--The Microloan Program provides very small loans to start-up, newly established, or growing small business concerns. Under this program, SBA makes funds available to nonprofit community based lenders (intermediaries) which, in turn, make loans to eligible borrowers in amounts up to a maximum of $35,000. Although the Microloan Program has been hailed as a successful government financing model, it provides very small amounts of capital.  For more information click here.

Other Federal Financing Programs--Besides those already mentioned, there are several other federal programs providing finance assistance to exporters, franchisees, research and development firms, etc.  For more information click here.

State and Local Government Programs--In an effort to improve their local economies, many states, municipalities and counties provide a variety of public financing for small businesses.  Almost every state and/or municipality has some type of economic development agency or finance authority whose objective is create jobs through financing investments in small/growth businesses.  For more information, check with your local government website.