That said, the SBA has also emphasized that their agency will not allow guaranteed loan funds to be utilized for malicious businesses such as gambling establishments, nonprofit enterprises, and lending or investment enterprises. Furthermore, the Small Business Administration also restricts grantees to use the funds for indiscriminate relocation of businesses and for financing of real properties that are being held for investment purposes.
The Small Business Administration has established the Loan Guarantees Program wherein they aim to be able to provide guaranteed loans to small business establishments which are not capable of acquiring financing from a private credit marketplace but greatly manifests the ability to repay funds in a timely manner.
SBA has estimated that it can grant loans amounting to $2,000,000 or lower, pending the eligibility of applicants and the availability of funds and resources.
The small business establishments that wish to participate or benefit from the Loan Guarantees Program can submit their applications to participating lenders/banks so that these organizations will then be able to submit the applications for review at any SBA district office.
The Small Business Administration encourages interested parties to read more about this program before applying. To do that, don't hesitate to visit the Grants.gov website or Topgovernmentgrants.com.
Small business establishments that are located in the United States and its territories will be considered eligible to apply for this program, granted that they exhibit the desire and capacity to repay the funds that have been loaned to them.
The Loan Guarantees Program has been such a successful program ever since it's establishment. In the year 1997, the SBA has approved 99,607 loans and has administered funds amounting to $14.3 billion.
Small Business Administration's Loan Guarantees Program
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About The Author
The TopGovernmentGrants Editorial Staff maintains one the most comprehensive Websites offering information on government grants and federal government programs.
Adam Braun, founder of Pencils of Promise, is giving nonprofits a no-nonsense way to bring entrepreneurship to the next level. Pencils of Promise is a philanthropic organization that focuses on forming sustainable educational programs, and forging long-lasting, partnerships with communities. The organization aims to increase access to quality education and impact students and their families in high-need communities throughout Laos, Ghana and Guatemala.