SBA financing sources
 

 

For those of us that are currently working on our own businesses, there is always the question of when or indeed if, we should consider applying for financial aid, such as SBA loans. Indeed, this is not something that you make a rush decision on nor something that you can just jump into without doing some proper, preparatory research. In case you're wondering, yes you will have to do even more research after the research you've already done to start up your small business.

In fact, it is things like this that make the small business owner a rare breed (though this is changing). Business, especially when you're the boss or indeed the person that does everything day in and day out, requires a certain mentality. You need to be able to set goals for the day, achieve them and then be able to "switch off" when the day is done. Similarly, whether it be for SBA loans or new office equipment or even staffing, there is a lot of fact-finding and research to do. And then you need to be able to make a decision that is based on the evidence you've got, though there is a bit of instinct at work there as well.

That said, how can you figure out of going through the rigmarole of the SBA is the thing that you need to do at this stage in your business career? Consider first that the SBA is not actually in the business of handing out loans. They are primarily concerned with educating small business owners about specific loan programs that they may need. This can vary from your basic loan to get equipment all the way to real estate and retail loans. That said, SBA loans are primarily to help you in the application process. So here again, if you find that you want to expand your business then this may be the thing for you.

Keep in mind however that you first need to understand which program would be best for your business. For instance, you wouldn't want to try to get a real estate loan if you enjoy working out of your home as a one person show. Similarly, the basic business loan would be no good for someone looking to begin building a fleet of delivery trucks.

What SBA loans come down to is, you need to have a plan for expansion and growth of your business as that will dictate, which program you need to find out more about and set you on the right path.