Small and medium-sized businesses need money from time to time, whether it's to set up, expand, or stay open. Following the COVID-19 shutdowns , so much attention was paid to the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) that some employers may have overlooked the resources available through the federal government and state and local governments.There are many types of assistance programs, and they vary depending on where your business is located, explains Lenin Agudo, director of the Small Business Development Center (SBDC) at Widener University in Chester, Pennsylvania. Understanding the types of programs, where to find lenders, and how to access them can help you discover a variety of resources beyond the stimulus programs.
For-profit businesses operating in the United States can obtain loans of up to $5.5 million through various programs administered by the Small Business Administration (SBA), the federal agency dedicated to helping entrepreneurs. "These loans are obtained through an SBA-approved lender," says Agudo. SBA programs generally require that your business has been in business for at least two years and that you have invested capital in it. Some may require that you have exhausted other financing options first. Your bank can provide you with details of the conditions of each loan and advise you on which program is the most suitable for your business.“It's best to already have an established relationship with a bank” if you're interested in getting an SBA loan, Agudo explains. If your regular bank is an SBA-approved lender, start there. They know your business and may be able to direct you to the best programs