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So you’re set up with your business plan, have all your contacts in place, and all you need to start up is the money. Where are you going to go for your financing? Many people suggest going for a Small Business Administration loan, and they have absolutely every reason to do so. The SBA is an excellent organization that has provided many people with the financing that they need that they could not have possibly found in the P2P or mainstream lending markets.
The SBA started up for the first time in 1953 during the Eisenhower administration. During this time, the SBA was created in order to provide returning World War II veterans with the resources that they needed to secure a piece of the American dream. The SBA grew over the following couple of decades to encompass other groups, such as women, minorities and the disabled. For many of these groups, small business administration loans are often the first place that they go to for business financing.
The program came under attack in the 1990’s, when the largely Republican congress decided to start phasing the program out. It reached a nearly bankrupt status in 2004. However, the program is now once again up and running well thanks to the help of the recent TARP bailout. Small business administration loans have gotten the funding that they need and are now readily available once again.
Government loans are an excellent resource for many new entrepreneurs. Check with the Department of Commerce to see if a small business administration loan is right for you.