Small businesses who are seeking loan opportunities that are guaranteed by the SBA may have various options as more programs, like the SBA’s Loan Advantage Program, may offer businesses in underserved areas the opportunity to find funding for their company and financing to help their operation grow. There are some business owners who feel an SBA guaranteed loan could be their only option and are looking for banks that may offer SBA financing. Typically, a business owner who may not have the option of getting a traditional small business loan could qualify for an SBA loan due to the fact that they are guaranteed and can offer a lender more protection if a business is, for example, relatively new and may not have a long credit history or record of earnings.
Yet, businesses have been seeking out various sources of financing from not only traditional banks, but credit unions as well. However, when it comes to getting SBA loans, there have been indications that more companies may find an easier route to financing with these guaranteed options. While many companies looking for an SBA loan have typically found assistance through the SBA’s 7(a) loan program, there are also options like microloans that may be available for startups and companies who need assistance establishing and running their business.
However, when it comes to finding lenders to offer an SBA loan, there are some business owners who may be unsure of what financial institutions in their area may be able to provide this particular form of small business financing. While there are major banks like Wells Fargo, Bank of America, and J.P. Morgan Chase who offer SBA loans, the area that a small business is in may also offer other sources of SBA loans as there are some smaller financial institutions in various areas of the nation that may be helpful for business owners as well.
The SBA can provide information and resources on local offices in various states which could help business owners seeking an SBA loan wade through the different financial institutions that may be able to help them with their financing needs through a particular SBA program. While there are, obviously, small business loans from major lenders that are not associated with the SBA, more businesses are finding that aside from new SBA initiatives, there are reports that more major servicers are beginning to open up the books and loosen lending practices in some areas.
While a business owner may not want an SBA loan, there are also resources from the SBA, like mentors and small business counselors, that may help these companies either better write a business plan so that they can receive sources of financing from a bank or these counselors and mentors may simply help the company with decisions related to getting their business off the ground and running or becoming more profitable down the road. Again, while there are some companies who are in need of financing, others may be able to simply benefit from small business assistance from resources that can help these businesses either put themselves in a better position financially, operate more efficiently, or begin to grow in such a way where financing may not be necessary at the present time.