Small Business Administration (SBA) Funding Programs

Grantor: SBA
Amount: Varies

The SBA does not provide business grants, but they do offer various types of other funding services including loans, investment capital, disaster assistance, surety bonds, and more.

Business Loans

The SBA works with lenders to provide loans to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines for loans made by its partnering lenders, community development organizations, and micro-lending institutions. The SBA reduces risk for lenders and makes it easier for them to access capital. That makes it easier for small businesses to get loans. Loans guaranteed by the SBA range from small to large and can be used for most business purposes, including long-term fixed assets and operating capital.

Investment Capital

The SBA doesn’t invest directly into small businesses, but it does provide funding to qualified SBICs with expertise in certain sectors or industries. An SBIC is a privately owned company that’s licensed and regulated by the SBA. SBICs invest in small businesses in the form of debt and equity. Those SBICs then use their private funds, along with SBA-guaranteed funding, to invest in small businesses.

Disaster Assistance

The SBA offers disaster assistance in the form of low-interest loans to businesses, renters, and homeowners located in regions affected by declared disasters. If your insurance, and funding from the Federal Emergency Management Agency (FEMA), doesn’t fully cover the disaster assistance you need, you can use disaster loans for a number of purposes.

Surety Bonds

Surety bonds help small businesses win contracts by providing the customer with a guarantee that the work will be completed. Many public and private contracts require surety bonds, which are offered by surety companies. The SBA guarantees surety bonds for certain surety companies, which allows the companies to offer surety bonds to small businesses that might not meet the criteria for other sureties.

Deadline: Ongoing

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Source: SBA.gov