Small companies are practically always giving back. They give aspiring workers around the country places to work, communities a way to acquire products and service and of course, they give the US government large amounts of their well-deserved dollars.
According to statistics gathered and published by the IRS, businesses that earn less $250 million per year generate around $38 billion in revenue taxes per year. And while some people look at this in a negative light – let’s look at this from a more positive side –these businesses can get a something useful in return for their effort.
Of course, we’re talking about the assistance small businesses can get from the United States government. These are the loan programs you can take advantage of in order to grow your business – some of them are pretty broad, while others are quite precise.
So without further ado, here are a couple of federal programs that can help you expand your business. Take a look at every one of them carefully and see which ones will work for your company and then go and see if the government is willing to help you with your business endeavors…
Top Federal Programs for Small Companies
· 8(a) Business Development Program
If you’re operating a small business that falls under Small Business Administration’s definition of a “economically disadvantaged “ business, you’re eligible to participate in the 8(a) BDP. The program is there to help disadvantaged companies compete in the market through contracting, education and joint ventures.
For example, the program can connect you with a group of experts that will help you understand various government contracts and enable you to bid on them. And if you manage to compete with larger companies and make a profit, you’ll be able to become a business cultivator and a mentor to other small business owners yourself.
· Grants.gov SMB Grants
Unlike business loans, grant allow you to fund a specific venture, so in order qualify for one of these business grants, you need to have a distinctive purpose that the government official deem worthy of US taxpayers’ dollars. Now, Grants.gov is actually a site that allows you to both search and apply for various government grants.
And before you start searching, you should make sure that you’re looking at SMB grants and after that, be prepared to a bit of reading. At the moment, there are over thousand different grants listed on the sire, so basically, there’s something for everyone. The site is great if you’re working within the tech sector or if you’re doing anything related to medicine, because these areas have targeted goals that align pretty well with grant programs.
· SBA-Backed Loan Guarantees
Last but not least, we have one of the most straightforward ways the government can help your business. So if you have problems qualifying for a loan, the SBA can always step in and make your company look way more attractive to potential money lenders, by backing-up your business idea.
However, you cannot simply go out and take advantage of this at any moment. These loans are only meant to be used when a business doesn’t have any other financing options on realistic terms. In order to qualify for a SBA-backed loan, you need to:
- Have some equity in the company
- Be in a serious need for money
- Operating your business at a profit
Additional Programs and Benefits You Should Know About
· Research grants
If your business is involved in any kind of scientific research and/or development, you can qualify for a number of federal grants through SBIR and STTR programs offered by the Small Business Administration.
· Surety bonds
The question you probably have in your mind is: What is a surety bond? In short, it is assurance that asserts a client a task will be finished even if the contractor isn’t able to complete the job. The SBA provides programs that cover bid, payment and performance bonds for contractors.
· Connecting borrowers
You can easily locate any SBA-qualified lenders – as well as other government financing resources – in your area for financing through both government and private-owned website like BusinessUSA.
And if you haven’t noticed by now, inexperienced entrepreneurs and first-time business owners can easily find a ton of information through Small Business Association’s official website. Whether you want to draw a business plan or choose a business structure – they got you covered.
Although relying too much on government assistance could be a bad thing, every program we mentioned here could help you grow a perfectly sustainable, un-dependable business.
Of course, you cannot rely entirely on these programs, you should try to gain as much as you can from them, and use them too boost your business-management skills and your resume.
So while the programs above will give you a couple of shortcuts, you need to put in some effort and conquer the business world on your own terms.