The Small Business Administration (SBA) can be a tool for small business loans.  Although the government organization doesn’t lend directly to businesses, they can help small firms find bank loans at much lower interest rates (6% – 13%).  The benefits in seeking a loan through the SBA is enormous, however, qualifying for the SBA can be daunting.  

The three main loan programs of the SBA include “the 7(a) Loan Program, the CDC/504 Loan Program, and the Microloan Program.”  7(a) is for hiring new employees, refinancing or expanding your business, the CDC covers more mature and established businesses or owners, and the Microloan program is for companies seeking small capital requests of anywhere from $500 to $50,000.

“In 2015, the SBA helped small businesses create (and retain) over 55,000 jobs, start over 19,000 businesses, and secure $4.7 billion in capital.”  The government is a good resource for those interested in lower rates and all but guaranteed funding options.  For those without good personal or business credit, another option may be needed.