Any business that is personally owned by a group of partners or a single proprietor is termed as small business. The terms and conditions pertaining to the development of small business vary from country to country. Each country has their specific rules for setting up a small business. The various types of small business includes beauty parlor, home based online jobs, confectionary chain, small scale manufacturers, accountants, lawyers and the owners of guest houses and restaurants. To run any business, be it a large scale business or a small business proper flow of funds is required.
There are a set of loans that are granted for small business by the government and the loan structures are subject to change geographically. In a small business usually there are a very small number of employees. Based on the selling, profit made through sale and asset allocation a business is categorized under small or big business. Almost all the countries have instances of small business. The government defines the rules and regulations.
Listed below are types of small business loans and the purpose for which it can be used:
The Programme of 7(a) Loan for Small Business:
The banking organizations are always ready to provide loans to the small scale business owners. The loan programmes are very much flexible in nature. The loans are mostly passed by the commercial institutions accredited to provide loans. There are different kinds of programme of loans are included in this 7(a) loan. These includes loan programmes for the rural loans, loans for special purposes, loans for export and various other programmes.
Purpose: This loan is granted to set up a small business and thereafter to proceed with the same.
The Loan Programme for CDC/50 for Small Business:
The above mentioned loan programme is granted to the small business owners through a developmental company which is certified. These companies are either privately owned and a corporation that is non profitable in nature. The rates pertaining to the loans are fixed.
Purpose: These loans are mainly provided to build up a place or factory for the business operations. The required instruments can also be purchased through these loans. This kind of loan largely contributes towards the economical development of the communities
The Programme of Microloan:
The term of the above mentioned loan programme is very short. It is mostly granted to the small business which deals with the centers which provide care to the children. The loan is mostly passed through the designated lenders who are intermediary in nature. These organizations are mostly non profitable in nature and is also known to have knowledge of the lending procedure as well as they are ready to assist technically.
Purpose: The loan is taken as for of a liquid fund that would help to acquire the basic amenities like ergonomics and machinery.
The Programme of Loan provided To Deal with any Casualties or Disaster:
These loans are of very low interest. These are not only granted to the business owners but it can also be availed by house owners as well. The loan will only be provided for the disasters that are reported.
Purpose: The loan is mostly granted for the repairing and replacement purposes. For more updates you can read news.