IDBI Bank introduces a range of attractive products with MSME Finance facility for the micro, small and medium business and takes care of the funding needs for our SME customers.

1. Free help by SBA for Small
Business Loans

2. Why should anyone be interested in
helping you for free?
 The government benefits if it gives small
business start up loans and that is why it
helps.
 Statistics show that small businesses number
more than the big businesses.
 Small businesses employ more than 50 percent
of the work force.
 Small businesses contribute to more than 50
percent of the nation's GDP-Gross Domestic
Product.
 Small businesses are the principal source of new
jobs.

3.  Starting a small business or expanding your small
business is not easy. Expert guidance and help is
given to you for free by SBA. The US Small
Business Administration was established in 1953
and has business offices in every state. SBA works
with thousands of lending, educational and training
institutions nationwide. It does not provide grants
but offers counseling. Government small
business loans are offered to many
entrepreneurs. Look up the web sites of the state
economic development agencies to know if it is
available in your state.

4.  SBA is only a guarantor of loans offered by banks
and other private financial institutions. The lending
institutions that agree to terms of the SBA provide
loans to small businesses through SBA. In case of
inability of repayment of loan within the stipulated
time; the SBA pays the lender the agreed upon
guarantee amount, and the borrower has to pay the
SBA the entire amount.

5. Can the SBA help you?
 Small business is one that is independently
owned and operated and is not dominant in its
field of operation. SBA has regulations to
determine whether your business qualifies as a
small business. You could look up the SBA
website or federal government regulations to find
out if your small business startup loan or small
business loan for expansion qualifies. Your
business has qualified then the next question that
any lender would ask you, is: Do you have a
business plan?

6. Most lenders would require a detailed description
of the business you are going to start up or
expand.
 Writing a business plan
 Getting the loan
 Marketing
 Licenses and Laws
 Patents and copyrights
 Selling to government and abroad
 Hiring employees
 Buying the right equipment
Notable among it various programs are Small business loans for
minorities, Small business loans for Women, Small business loans
for veterans and young entrepreneurs. The various small business
loan programs offered by SBA are.

7. Basic 7(a) Loan Guaranty
This is the primary business loan program. It is
offered to those who do not qualify for loans
through the normal lending channels. The terms
offered by SBA are more flexible. Valid loans are
those where the proceeds of the loan are used for
sound business purposes. The maturity is 10 to 25
years depending upon working capital and fixed
assets.

8. Loan Prequalification
Low income borrowers, disabled business owners,
exporters, rural and specialized industries are the
target for this program. Bad credit small business
loans do not fall in this category. The applicant has
a credit merit then it is easier to secure the loan.
Certified Development Company (CDC), a 504
Loan Program
This is a variant of the Basic 7(a) loan to obtain
real estate or equipment for expansion or
modernization.

9. Micro Loan Program
This is available in selected locations in most
states. The SBA stand as guarantor to
organizations that provided the loans, technical
assistance and management for small scale
financing. Not-for-profit child-care centers can also
avail these loans for working capital or purchase of
inventory or supplies.

10. Disaster Recovery
 Home owners, Property owners in disaster areas
qualify for this loan program. Term of the loan is
30 year and the rate of interest is below 8 percent
for those who can obtain credit elsewhere and
below 4 percent for those who cannot obtain
credit elsewhere.

11. http://www.youtube.com/idbibank
http://www.facebook.com/idbibank
http://www.twitter.com/idbi_bank
https://plus.google.com/+IDBIBank
https://in.linkedin.com/company/idbi-bank
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Source: http://EzineArticles.com/234751