Government generally does not lend a money directly to business owners. It guaranties the banks for the money lent to business owners. In other words, if the borrower fails to payback the loan, government can pay the spesific portion of the loan. Because of this guaranty, financial instutions are more willing to borrow because their risk are reduced. Therefore, even though business owners are not qualify for traditional loans, they can obtain government guaranty small business loans.

You can get information from commercial bank and also from related goverment agencies. Lenders have all the papers you need for applying government guaranty loans. They can urge you to apply that because their risk are reduced.

There are lots of government loan programs available for business owners. Each program is designed to give solutions to spesific situations. There are some paper work to do and you can find detail information at SBA – Small Business Administration-.

Documentation requirements vary for small business loans. First thing you should do is preparation. Lender instituations first look at your credit history, business plans and financial statements.

There are many institutions offering small business loans. Look for the right lender. Every lender has different loan packages and so different interest rates and costs. They want to make sure that you’ll repay your loan on time, so it’s important the collateral that you show to get loan.

Decide on short term loan or long term loan. Variable interest rates or fixed interest rates. Of course these are depending on your business plans so well outlined plan is needed.

You will definately need the documents; balance sheet, income statements, dev to equity ratio, payment records, tax returns, liabilities, assets, work history and experience etc.

If you have a good project and well prepared documentation, there’s no reason that institutions will negatively respond your small business loan apply.

Most of the paper work is the same but there are some little differences if you will apply for government small business loans. As governments do not provide loans directly to borrower, you have to apply financial instuations again for government guaranteed loans. Lender institutions will assist you in preparing all the documentation for SBA loans.

SBA is helping small business owners to get loans from 1952. If you will apply for SBA loan, then you should visit your financial instution. There are many SBA loan types. For example, they have basic 7(a) loan program, certifies development company 504 loan program and microloan program for starting or expanding business. They have disaster loans or export, import and international trade loans. Veteran and military community loans are also available.

According to business.gov, The Official Business Link To The U.S Government, SBA loan application checklist is below;

1. SBA Loan Application Form
2. Personal Background
3. Personal Financial Statement
4. Projected Financial Statement
5. Business Financial Statement
6. Ownerships and Affilations
7. Business License
8. Loan Application History
9. Business Income Tax Returns
10. Personal Tax Returns
11. Resumes
12. Business Overview and History
13. Business Lease

Your lender institution will provide information about all the necessary documents to apply for SBA loan.

If you are starting a new business or if you have a business already and planing to expand it but there’s no money to invest on business. Small business loan options are right for you. There are many financial instutions giving commercial loans. You can use them for advertising, renovations, emergencies, expensions, capital expenditures, export or import whatever your need is.

Interest rates charged on small business loans ae generally at variable or fixed rates. With fixed rate loan, you know your monthly payments for the duration of the loan. With variable interest rates, interest rates fluctuate so your monthly payments change as interest rate changes.

Banks and financial instututions offer business loans. You should make a good research before obtaining it and read all the documents before signing the agreement. Be aware of the all the costs and penalties if you can’t repay on time, so that your investment project don’t turn into nightmere. Because there are significant compatition on commercial loans, compare the instutions before obtaining a loan will give you the different perspectives and with that comparison you can choose the loan with minimum cost.

There are spesific loan institutions, government or private, that targeting women business owners. One of them is Women-21.gov. According to them, today there are 6.2 million women owned firms empoying 9.2 million people and generating sales of 1.15 USD trillion. Like other institutions, women-21.gov is helping women business owners by promoting policies and removing obstacles in the business.

SBA is on the other hand, one of the most effective agency for small business loans for women.

WBCs, Women’s Business Centers have also grant opportunities for women entrepreneurs.

Aauw –American Association of University Women, with the slogan “Breaking through barriers for women and girls” have many resources for grant opportunities and scholarships.

As a woman enrepreneur, before obtaining small business traditional loan, we urge you to look up these government agencies and private fundings. You can find more advantageous loan types in these organizations. Do not forget to follow up grants.