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 - Applying for a Grant

Grants From The Department of Commerce
In this article, you will discover the services offered by the Department of Commerce as well the different programs that could potentially help you in which ever way possible.

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Grants From The National Science Foundation
Since its creation in 1950, the National Science Foundation has been constantly promoting the progress of science by way of advancing national health and prosperity and financially supporting research and development studies in all the non-medical fields of science and engineering.

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Small Business Grants - Support for Veterans
The SBA is dedicated to lend a hand to the service people in America and directly links with the Patriot Express Loan for veterans who desire to initiate their own business and want to start commercial activities. The SBA also plays a role in encouraging growth and job creation during the process, which is an indispensable part to support economic prosperity.

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Ethical Schools Project in Peru
The Ethical Schools Project revolves around the notion of promoting a culture of ethical behavior and civic responsibility among members of the youth, as well as teachers and parents. The project also aims to explore ways that would contribute to a reduction in corruption and other forms of illicit activities such as cocoa cultivation and illegal environmental degradation, which are both common practices in Peru.

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