How The Government Can Help Your Small Business
Page 2

Since the SBA has formed partnerships with third-party lenders, community development organizations, and microlending institutions, these third-party partners will then be able to directly provide you with loans and other forms of financial assistance. This setup is basically similar to procuring a commercial loan, but it is easier and more efficient because the SBA will serve as your guarantor, meaning it will assure the third-party partner that you have the capability of repaying the loan and that you will, without a doubt, repay it.

The Bonding Program, also known as the SBA’s Surety Bond Guarantee (SBG) Program, can help small business contractors obtain surety bonds by way of standard commercial channels. To understand this better, a small business owner should first know what a surety bond is.

A surety bond is an agreement between a surety (someone who agrees to assume responsibility for the debt of the primary borrower in cases wherein the borrower fails to assume his or her responsibilities), a small business contractor and a project owner.

Through the SBG program, the SBA will enter into an agreement with a surety stipulating that the SBA will take responsibility for a percentage of loss in the event that the primary borrower fails to adhere to the terms of the loan agreement.

The Venture Capital Program, on the other hand, was designed to work through the SBA’s Small Business Investment Company (SBIC) Program wherein the SBA could indirectly provide venture capitals to small businesses and small business owners.

Small Business Investment Companies are privately-owned and managed investment funds that are licensed and regulated by the SBA. These companies could help small businesses by providing them with funds in the form of debt or equity, just like venture capital, private equity and private debt funds. However, they differ in a way that SBICs will only restrict their investments to eligible small business concerns that are defined by the SBA.

If you wish to know more about the programs and functions of the SBA, you can visit their website at http://www.sba.gov/.



How The Government Can Help Your Small Business
  Back to Page 1

About The Author

Iola Bonggay is an editor of TopGovernmentGrants.com one the the most comprehensive Websites offering information on government grants and federal government programs.

She also maintains Websites providing resources on environmental grants and grants for youth programs.




Additional Resources



category - Applying for a Grant

What You Need To Know About Grants.Gov
Grants.gov is one the largest websites that features at least 1,000 grant programs from 26 different federal grant-making agencies in the United States.


Democracy, Human Rights, Rule of Law, and Freedom of Expression and the Press for Europe and Eurasia
The Bureau of Democracy, Human Rights and Labor Affairs has recently established a funding opportunity entitled Democracy, Human Rights, Rule of Law, and Freedom of Expression/Press for Europe/Eurasia, wherein they are seeking applications and proposals that aim to develop projects promoting democracy, human rights, rule of law, and freedom of expression/press in Europe and Eurasia.


What You Need to Know About the Grants Policy Committee
The Chief Financial Officers Council, one of the largest federal agencies that works towards collaboratively improving the process of financial management in the United States Government, has established the Grants Policy Committee(GPC).


Government Grants - What are they and how to get them ?
None of these Government Grants require a credit check, collateral, security deposits or co-signers, you can apply even if you have a bankruptcy or bad credit, it doesn't matter. Its Free Money Never...






Social enterprise, HandiConnect, wins the Audacious-Business Idea competition’s Doing Good category. The company is spearheaded by University of Otago entrepreneurship master’s student Nguyen Cam Van.




Not for Profit Jobs in Nebraska

  Executive Director Jobs
  Substance Abuse Jobs
  Program Director Jobs
  Executive Director Jobs
  Social Services Jobs