Finding Small Business Loans
Online is Easier Than You Think
Although there are many brick-and-mortar
sources for loans for small businesses, modern technology
has affected even the lending market. Small business
loan sources can be found on the web using a number
of methods.
A search engine is the most obvious place to search
for small business loans online. All a user has to do
is pull up his/her favorite search site and type "small
business loans" into the search box. Upon hitting
the button, a multitude of hits will appear, giving
the user many choices to sort through. On one popular
search engine, this method results in over twenty million
pages containing those terms. Granted, not all of the
resulting websites will be legitimate sources of funding,
and some are surely articles pertaining to the subject,
but in that listing of links are actual banks and other
institutions that cater to small businesses by offering
them low interest loans.
How does one tell if a source for small business loans
online is legitimate? If the source is a bank with actual
branches, that can help a great deal in establishing
its legitimacy. Look for the FDIC notation on the site,
as well as an indication that the establishment has
some physical branches. A good track record is also
important, so make sure that the bank has been around
for a while before deciding to do business with it.
There are also many legitimate non-bank sources of
small business loans online, many of which are affiliated
with the Small Business Association (SBA), which is
an independent agency of the federal government. One
of the programs that the SBA has is called the 7(a)
program, named after the section of the law that authorizes
the agency to provide loans to U.S. based businesses.
Under this program, private lenders underwrite loans
to small businesses, and parts of these loans are guaranteed
by the federal government against default. What this
means is, if the borrower doesn't repay the loan, the
SBA will step in and refund some of the lender's money.
If a non-bank lending institution is affiliated with
the federal government in this way, it is a safe bet
that it is on the up-and-up. The SBA will have in its
records information about the loans that have been provided
by this lender in the past, so placing a call to the
agency can be a good way to research the lender.
Thus, not only can one apply for a small business loan
at a local bank, but there are many sources of money
for small businesses available on the web as well. Whether
through an actual bank or from a non-bank institution
that is operating in conjunction with the federal government's
Small Business Association, loans are being applied
for online every day. By expanding the number of possible
loan sources exponentially, a small business can be
assured they are getting the best interest rate possible.
And although the borrower should make sure to research
the lending institution to ensure its legitimacy, applying
for a loan online can be a quick and easy way for a
small business to get the extra funds it needs.
