The SBA offers substantial educational information with a specific focus on assisting small business startup and growth. The National Foundation for Women Business Owners states that the current estimated growth rate in the number of women-owned firms is nearly twice that of all firms, and this increase is a trend that is expected to increase even more in coming years.
The Smaller War Plants Corporation accomplished this through providing loans directly to private entrepreneurs, providing incentives to large financial institutions to increase lending to small enterprises and acting as an advocate for small business in the federal procurement process.
The purpose of the SBA’s Microloan program is to assist women, low-income individuals, minority entrepreneurs and business owners, and other individuals possessing the capability to operate successful business concerns and to assist small business concerns in those areas defined by the SBA as economically distressed areas.
In this climate, SBA-backed loans became all the more important as a lifeline to small businesses and the federal government acted to lower rates and increase the amount of small business loans they would guarantee for banks, from 75 percent to 90 percent in some cases.
Whether just getting started or looking to expand existing operations, applying for government loans of this nature requires a certain degree of business savvy and the will to succeed, yet the loan approval process in its entirety entails a bit more than sheer determination.