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How to get a SBA Microloan | United States should take a lesson from China

by Robert Wagner on January 26, 2010

China’s central bank recently requested more Microloans to the rural community in China. The reason is that it would spur growth in the most impoverished areas of the country.

Is the Small Business Administration doing everything it can to get small loans into the hands of business owners in the United States?

Microloans or Micro Loans, Is a way for this country to increase jobs and put people back to work. With any government program, the red tape can be overwhelming to someone that is not familiar with the process. The business owner has some tools that they can use to get SBA Microloan financing. The SBA needs to streamline this as soon as possible.

Can I qualify for a Microloan?

The SBA does not lend money; they only guarantee it. For this reason, you must work with a lender to have a loan underwritten according to the Small Business Administrations guidelines. To get Microloan funding, you will need to work with a government intermediary. This is a special designation, and they will help you qualify for this type of small loan. Although you will need some form of collateral, the intermediary will work with a small business owner on what is acceptable and can include everything from furniture and equipment. The business owner will need to take some classes to ensure that they understand basic business principles.

The SBA needs to step up to the plate and get funding into the hands of new and existing small businesses. This will grow the economy and create jobs.

Next, step for getting Microloan Financing

For the small business owner, you must look at this kind of loan as an investment in your business. Do the work that is necessary to qualify. Keep in mind that when you receive capital through a Microloan when you need money in the future, it will be a much quicker and smooth process, as long as you make the payments on time.

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