Thursday, November 17, 2022

Small Business Loan Government Programs

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Sba Express Bridge Loan

Many small business owners feel left out of government loan program

If you already have a business relationship with an SBA Express Lender, then a new Express Bridge Loan Pilot Program offers a quick turnaround on up to $25,000 to help bridge the gap until your SBA Economic Injury Disaster Loan is approved. Bridge funds can be paid in full or in part with proceeds from your EIDL once it is approved.

Black Business Supplier Development Programme

This programme offers grants in a cost-sharing scheme to black-owned business for the purpose of business skills training. It offers support to black-owned enterprises by helping to improve their core competencies and management abilities, and enabling them to become more competitive. The scheme helps people with promotional marketing materials, software development and other activities such as quality improvement, processes and product improvement.

Companies that are majority black-owned and which have a significant representation of black managers on their management team quality for the grant. Companies should not earn more than R12 million per annum and must have been trading for at least a year. They need to be registered with CIPRO and with SARS. The maximum grant for which a single company can qualify is R100 000.

Application procedure: Obtain application guidelines and an application form. Complete the application form. Obtain and attach a tax clearance certificate, and submit the application.

Contact the Department of Trade and Industry Customer Care Centre: 0861 843 384

Bounce Back Loan Scheme

The Bounce Back Loan Scheme can be used by small and medium-sized enterprises in the UK and lets you borrow between £2,000 and £50,000. But the maximum amount you can borrow is capped at 25% of your turnover.

The loan is interest-free for the first 12 months, after which 2.5% is applied, and repayments are made across six years.

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Who Can Get A Grant

The federal government awards grants to organizations including:

  • State and local governments

  • Non-profit organizations

  • Businesses

The intent of most grants is to fund projects that will benefit specific parts of the population or the community as a whole. What you might see about grants online or in the media may not be true. The federal government does not offer grants or free money to individuals to start a business or cover personal expenses. For personal financial assistance, the government offers federal benefit programs. These programs help individuals and families become financially self-sufficient or lower their expenses.

Dti Loans For Small Business In The Philippines

SBA reopens EIDL program to small businesses and ...

The Department of Trade and Industry and Small Business Corp. launched the COVID-19 Assistance to Restart Enterprises Program. The SBC CARES Program helps entrepreneurs get back on their feet. CARES offers DTI loans of up to PHP 500,000 and is part DTIs Pondo sa Pagbabago at Pag-Asenso, also known as P3 Program, first launched in 2017.

The P3 and CARES programs are quite similar. However, CARES Program specifically accommodates entrepreneurs whose businesses were affected by the lockdown. Keep reading to know more about these DTI loans for small business and if you should apply for them.

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Government Grants For Small Businesses: Grant And Loan Support To Help Your Business

Keir is Sages dedicated expert in the small business and accountant fields. With over two decades of experience as a journalist and small business owner, he cares passionately about the issues facing businesses worldwide.

Funding your business can be difficult, whether thats getting it off the ground, or growing a successful enterprise.

A variety of government grants and loans are available to address just this need, and should be investigated by all businesses. Read this article to learn about the financial support thats available to your business.

Here are the topics that are covered in this article:

What Can You Do If Youre Denied A Small Business Loan

There are a number of steps you can take if youâre denied a small business loan. First, try to find out why your application was denied. If your SBA loan application is denied, youâre entitled to a notice of denial that details the reasons you may receive this directly from the SBA or from your lender.

If, instead, you are denied a small business loan through an online lender or other financial institution, contact them to find out why you were not approved. They may be able to provide insight into how to improve your future approval odds.

Once you know why your loan application was rejected, take steps to rectify the underlying issues. For example, you may need to improve your credit score, establish more consistent sales or reassess the amount you need to borrow.

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South African Micro Finance Apex Fund

Samaf gives financial services to small-scale entrepreneurs living in rural and outer urban areas. Samaf does not lend money directly to the public. It uses existing institutions within communities to handle the funds and lend to qualifying entrepreneurs. Samaf has three products: the Micro-Credit Fund , the Capacity Building Fund and the Savings Mobilisation Fund .

Contact Samaf: 012 394-1805Websites: www.samaf.org.za www.thedti.gov.za

Loans Available For Businesses

Governments small business loan program on hold after reaching lending limit

Its also worth considering loans.

Like grants, theyre offered via a variety of institutions. Its a mistake to think that banks are the only route for loans.

Often, the deals from these institutions are better value than standard bank loans, and are underwritten by the institutions to remove any barriers.

This makes them available to businesses that may not have a good credit standing .

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Sba Business Expansion Loans

The disaster-related loans referenced above are made with funds appropriated or guaranteed by Congress. SBA business expansion loans are commercial loans, structured according to SBA requirements, with an SBA guarantee. Small business owners and borrowers who have access to other financing with reasonable terms are not eligible for this type of SBA-guaranteed loan. Guaranteed loan programs from the SBA include the following:

Apply For A Start Up Loan For Your Business

Apply for a government-backed Start Up Loan of £500 to £25,000 to start or grow your business.

Unlike a business loan, this is an unsecured personal loan.

Youll get free support and guidance to help write your business plan, and successful applicants get up to 12 months of free mentoring.

on the Start Up Loans website

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Top 3 Government Grant Types For Small Business Owners In Alberta

While government grants are often referred to as just grants, as in free money there are different types of government grants one should know about. These include:

  • Non repayable government grants
  • partial contribution grants
  • conditionally repayable grants

Each government grant is different, has different criteria and qualification. In most cases these government grants have their own guidelines one must follow before even becoming eligible.

Non Repayable Government Grants

The non repayable government grants are often the best type of government grant a business owner in Alberta can get.

These grants are exactly as they sound non repayable.

Meaning, the money you obtain from this type of grant program does not need to be paid back unlike a loan.

However, that doesnt mean that you can just use the funds for anything you want instead, these government grant types fund very specific needs a business may have and are provided based on those needs . If the funds are used otherwise, the government may ask for the funds back.

Partial Contribution Government Grants

The partial contribution government grants are great options, much like the non repayable government grants as you in most cases wont have to pay the grant back however the partial contribution part of it asks that you provide funds of your own as well in order to qualify.

Sort of like a partnership.

The partial contribution percentage may vary from business to business.

Government Loans:

Tax Breaks/Credits:

National Small Industries Corporation Subsidy

SBA Reopens Economic Injury Disaster Loan

The NSIC is a Government enterprise under the MSMEs, and it is ISO certified. One of its primary functions is to aid the growth of MSMEs by providing services including finance, technology, market and other services across the country. The NSIC has initiated two schemes in order to promote the growth of MSMEs, which are:

  • The scheme supports in development any business by devising schemes such as Consortia and Tender Marketing. Such a scheme is crucial as the MSMEs must be aided in order for them to grow in the current competitive market.
  • The NSIC provides for financial aid to procure raw materials, for activities in relation to marketing and for financing with banks through syndication to MSMEs.

The benefit of this scheme is that it offers the small-scale industries access to tenders without them having to bear any costs, and the MSMEs also do not have to pay the security deposits for availing financial aid under this scheme.

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Search And Apply For Government Grants

To search or apply for grants, use the free, official website, Grants.gov. Commercial sites may charge a fee for grant information or application forms. Grants.gov centralizes information from more than 1,000 government grant programs. It’s designed to help states and organizations find and apply for grants.

Dti P3 Cares 2 Loan Online Applicationsteps

  • Prepare and scan your documentary requirements.
  • Visit the official CARES Bayanihan 2 Borrower Registration System website and create an account.
  • Fill out the required information and provide an active and correct email address.
  • Wait for a verification email to be sent to the email address you provided, and then click on Verify Email.
  • Key in the requested information on the DTI loan application form online, and then click on Apply for a Loan.
  • Attach and upload your scanned loan documents.
  • Youll receive a confirmation email. All updates regarding your online loan submission and assessment will be sent to your email.
  • Make sure to submit correct and complete documents for a quicker loan evaluation, which usually takes seven days or less.

    See also: Smart Tips to Get Approved for a Business Loan

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    Small Business Assistance Program 2021

    The Small Business Assistance Program is a short-term program offered by the Department of Industry, Energy and Technology to assist eligible small businesses and non-profit community organizations that experienced revenue losses, increased costs of health and safety protocols and business adaptations due to the COVID-19 pandemic.

    Small Businesses:

    Eligible small businesses can apply for a non-repayable contribution of $2,500, $5,000, $7,500 or $10,000 based on eligibility criteria and guidelines.

    Non-Profit Community Organizations:

    Eligible non-profit community organizations can apply for a non-repayable contribution of $5,000 or $10,000 based on eligibility criteria and guidelines.

    Please note: Application deadline for the Small Business Assistance Program is December 15, 2021 .

    Required Information and Documentation

    To complete the application, the following information is required:

    To complete the application, the following documentation is required:

    For Existing Businesses

  • Void Cheque or Direct Deposit Form
  • Government-issued identification
  • Please provide a picture of a government-issued identification for the person completing this application.
  • 2019 and 2020 profit/loss or income/expense statements or official tax return statement of business activities
  • Where prepared financial statements are not yet available, in-house generated statements for the same time period may be accepted.
  • For Start-Up Businesses

    Accredited Financial Institutions For Dti P3 And Cares 2 Programs

    Local small businesses face uncertainty after federal loan program dries up

    As mentioned, DTI and SB Corp. partnered with over 200 financial institutions nationwide to accommodate business owners wanting to get a loan. Here are some of them:

    • 5K Multipurpose Cooperative
    • All Arm Finance Corporation
    • ARDCI Microfinance, Incorporated
    • Bacarra Zanjera Irrigators
    • Baracbac Santa Fe Multipurpose Cooperative
    • Cebu Peoples Multi-Purpose Cooperative
    • Family Lifers Multipurpose Cooperative
    • Free Planters

    Read more:8 Golden Rules for Starting a Small Business in the Philippines

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    Coronavirus Large Business Interruption Loan Scheme

    Applications for the Coronavirus Large Business Interruption Loan Scheme closed on 31 March 2021.

    • CLBILS was a government-backed initiative for businesses with an annual group turnover above £45 million
    • Lending through the scheme started at £50,001 up to £200 million, for a term from three months up to three years.
    • No personal guarantees were permitted for facilities under £250,000. For facilities more than £250,000, claims on personal guarantees could not exceed 20% of losses after all other recoveries had been applied.
    • Businesses who took a loan out through the scheme will remain liable for repayment of the loan.

    If you need support with your existing loan, please contact your Relationship Director.

    For more information about the Coronavirus Large Business Interruption Loan Scheme, please visit the British Business Bank website.

    Technology For Sustainable Livelihoods

    This is a programme of the Department of Science and Technology . It aims to create jobs for communities by helping to establish SMMEs. In particular, it makes use of technologies which can add value to SMMEs and makes them accessible to communities. At the same time, the programme helps to make these SMMEs successful by offering skills development and training.

    The DST offers technological assistance in the following areas:

    • Aquaculture: Communities are trained to farm indigenous fish as a business. They receive technology in terms of infrastructure and training to manage a fish farm, including diseases and harvesting.
    • Essential oils: These are valuable oils that are extracted from the leaves and flowers of plants. Communities benefit from skills development and training, and their businesses are linked to the local essential oils market.
    • Indigenous medicinal plants: Communities are taught to grow indigenous herbs commercially. These plants have special medicinal properties which have been scientifically proven. Communities receive training in farming methods and in how to start a commercial enterprise and their businesses are linked to local markets.

    Contact the DST Technology for Sustainable Livelihoods: 012 843-6421/18

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    Are Government Loans The Same As Grants

    A Government loan, as loans in general, will need to be repaid with interest, whereas a grant does not.

    Start-ups and small businesses with little or no assets to borrow against, often find that open market borrowing is out of their reach and Government loans can bridge this gap with a focus on the longer-term benefits.

    These can often be in the form of low-cost Government loans with the potential for discounted rates.

    The Government offers financial help to small businesses through more than 200 grants for a clear purpose and where there is a potential for a benefit to the local economy.

    This assistance can target saving money on premises, machinery and IT equipment for example, but will require time and effort to successfully apply.

    Most small business grants are available for start-ups or new businesses with a goal to create jobs and stimulate the economy.

    The Government grant does not need to be paid back, there is no interest payable and you retain all the equity in your business.

    IMPORTANT UPDATE: While the Government has responded to the Coronavirus pandemic with a variety of guaranteed loan schemes and grants it is vitally important that as a business owner you recognise the following:

    Although the Coronavirus Business Interruption Loan Scheme is generous and wide ranging, there will be many businesses who will be unable to access this scheme due to the financial profile of their business PRIOR to the coronavirus pandemic.

    We suggest the following two steps:

    Consolidated Appropriations Act 2021 & American Rescue Plan Act Of 2021

    U.S. Small Business Administration Disaster Assistance Loans

    Neither the Consolidated Appropriations Act , 2021 nor the American Rescue Plan Act of 2021 are government loan programs per se. They are laws, passed by Congress, that provide additional funding and rule changes for several government programs, including the Paycheck Protection Program , Economic Injury Disaster Loan program, and EIDL advances. Also included is funding for a new Shuttered Venue Operator Grant program.

    Descriptions of the programs below reflect changes made by the CAA and the American Rescue Plan. Additional guidance from the Treasury Department and the SBA may require further updates.

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    Can You Get A Small Business Loan With Bad Credit

    As with personal loans, itâs possible to get a small business loan with bad creditâscores as low as 580. However, youâll have to demonstrate strong cash flow, and banks are more likely to require collateral to reduce the risk of lending. Small business borrowers with bad credit also qualify for less competitive rates and pay more in interest over the life of the loan. If you have a low credit scoreâunder 580âan alternative option like invoice factoring may be your best bet.

    For Example You Can Use A Loan To Finance:

    • commercial vehicles
    • computer or telecommunications equipment and software
    • production equipment

    Interest rates are determined by your financial institution and may be variable or fixed.

    • Variable: The maximum chargeable is the lender’s prime lending rate plus 3%.
    • Fixed: The maximum chargeable is the lender’s single family residential mortgage rate for the term of the loan plus 3%.

    A registration fee of 2% of the total amount loaned under the program must also be paid by the borrower to the lender. It can be financed as part of the loan.

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    Sba Deferral On Existing Home And Business Loans

    If you currently have an SBA Serviced Disaster Loan that was in regular servicing on March 1, 2020, then the SBA is providing automatic deferral on your loan through March 31, 2021. Note the following:

    • Interest will continue to accrue on your loan during the deferral period.
    • 1201 monthly notices will still be mailed but will show no payment due.
    • Pre-Authorized Debit payments will not automatically be canceled. You must contact your servicer to do that.
    • You may continue making payments if you wish. No contact is necessary.
    • After the deferral period, you must resume payments and set up PAD if you canceled it earlier.

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