How The Government Can Help Your Small Business
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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
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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 - Small Business Grants

Business Loans From GovLoans
The government has launched innumerable programs that are all geared towards the achievement of this goal. Some of these programs involve the provision of technical assistance, training sessions, and strategies that would potentially help business owners in marketing their products and in expanding their businesses.

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Federal and State Technology Partnership Program
The Federal and State Technology Partnership Program works around the objective of being able to boost and strengthen the technological competitiveness of small business establishments in the United States of America.

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Secondary Market Lending Authority Program
The Small Business Administration has constituted the Secondary Market Lending Authority program, one which aims to provide liquidity for the secondary market, thereby ultimately encouraging new lending opportunities from banks of Small Business Administration guaranteed loans.

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Minority Business Enterprise Centers for Minority-Owned Businesses
The The Minority Business Development Agency has recently constituted the Minority Business Enterprise Centers (MBEC) Program wherein it aims to support minority-owned businesses by providing them with electronic and one-on-one business development services for a reasonably nominal fee.

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