Once you get your small business up and running, you’re going to want to ensure that it is kept afloat and continues to grow. In order to properly take these necessary steps, we have to understand that certain elements, such as natural disasters, the economy, and politics, are out of our control and can potentially harm our small businesses if we are not prepared.
Fortunately, there are multiple funding programs that will allow your business to recover and get back up and running should it ever start to lose consumers and need a boost.
Loans
It is important that your small business has access to loans. Not only can they build business credit and purchase equipment, they can potentially save a small business from financial disaster.
The U.S. Small Business Administration (SBA) helps small businesses get funding by establishing significant guidelines for loans and reduces the risk of falling victim to false lenders.
Loans offered by the SBA have numerous benefits including having reasonable rates and fees for guaranteed loans that fall around the same price as non-guaranteed loans, providing the support to help you start your business, and lower down payments.
Eligibility requirements for loans for your small business include your business being registered and legally operating, being physically located in the United States, having sound credit, and the exhaustion of all other non-government sources.
Disaster Assistance
If your small business is located in an area subjected to natural disasters such as hurricanes, earthquakes, and wildfires, you should ensure that you will receive financial assistance for a full recovery should your business ever be affected.
There are different types of disaster loans that your small business can utilize including physical damage loans to cover the repairs and replacements of physical items, mitigation assistance which increases funds for advancements that will further protect your business, economic injury loans that offer financial assistance after a natural disaster, and military reservist loans with
Disaster loans can be used toward any damages caused by disasters that are not already covered by insurance
Surety Bonds
A surety bond is a contract that consists of three parties: the principal, the obligee, and the surety. The bond provides a guarantee to the obligee, which is often a government agency, that the principal, which is typically a small business, will fulfill specific obligations that are proposed in the contract. If the principal fails to uphold their promises, the surety will cover any financial losses the obligee may have suffered.
The SBA guarantees surety bonds for certain qualifying companies that allow them to extend them to small businesses that are not eligible for other sureties.
Grants
Grants provide small businesses with the funds needed to get them up and running with the initial capital that will cover inventory, rent, and equipment.
Grants can also help small businesses beyond their initial starting points by providing the funds to support training programs for employees, inventory, research and development, and expanding upon market reach.
Unlike loans, grants do not have to be repaid.
In order to obtain grants, including the Small Business Innovation Research and the Small Business Technology Transfer programs, your small business will need to meet certain criteria to qualify.
To check these qualifications, contact SBA for further information.
