Different Types of SBA Startup Loans

Different Types of SBA Startup Loans

Creating a startup can be a long and expensive process. It can sometimes get difficult to cover all the costs on your own. Therefore, it is best to use the financing options from different sources like business lines of credit, bank loans, or business credit cards. However, it is a better option to go in for an SBA startup loan. There are two different types of SBA startup loans, which are the SBA Microloan Program and the Community Advantage Loans, both of which are discussed below.

The SBA Microloan Program

SBA startup loans have a lot in common with the SBA Microloan Program. These offer tailored small amounts to the new businesses according to their needs. This has made SBA Microloans a favorite among those who are seeking to begin a new venture.

SBA Community Advantage Loans

Acquiring a small business loan is a difficult thing for a budding entrepreneur. This is especially difficult for business owners with insufficient access to funding sources. Such people find this loan the best suited to them. The program was launched in the year 2011 and carries the objective of providing budding business owners access to business capital within their underserved community.

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