The home based business loans are offered by a number of finance companies to finance the home based businesses. It may be difficult for the home based entrepreneurs to get financing for their business. But there are associations that are dedicated to offer counseling and assistance to the small businesses and home based businesses to improve their business.
Small Business Administration (SBA) is one such agency run by the United States government to provide help and support to the home based businesses. Loan for home based business can help the business to make its stand firm in the market. The home based business entrepreneurs or small scale businessmen can go for government loans.
The governments generally offer a number of measures to help the home based businesses grow. The process of availing a government home based business loan is easy as the government in always keen on supporting the small scale industries.
But more than that, the biggest advantage of the government loans is that the interest rate charged is lower than the private loans. The government loans are also given for a longer period of time making the businesses to pay in easy installments.
Qualifying for the government loans is also easier than the private loans. But the biggest problem in attaining a government loan is the lengthy paper work.
SBA is an important source of financing home based businesses and small scale businesses in the USA. The SBA offers both the short-term and long-term loans to the businesses. But the SBA is not a direct lender but acts as a guarantor to the loans that are acquired from the partner lending institutions of the SBA. In order to have the guarantee from the SBA, the small scale entrepreneur must satisfy the requirements set by the lenders.
In order to attain the SBA’s home based business loans, the criteria that the borrowers need to satisfy are –
The business should have strong business plan
The entrepreneur should have a good personal credit rating
The borrower must have a stake in the business
Last Updated on : 29th July 2013