There are many different types of loans that behave differently and do different things depending on what the loan is.
Currently running, there are three types of Small Business loans in circulation today.
Loan Program: This loan is for securing funding for an already existing business or helping budding businesses find their way. These loans are as basic a type of loan as one can obtain, and cover:
– Working capital
– Equipment and the machinery to run the business
– General maintenance purposes
– Improvements as well as refinancing
– Land buying
Microloan: these loans, like their name suggests, are small loans to already existing businesses that have just established themselves but need just a tad bit of financial help. The loan itself covers the purchase of:
– General business needs
This loan does not cover existing debts nor can it be used to go into further debt.
Equipment and Real Estate loans: This is where the big companies start getting loans. Equipment and Real Estate loans typically provide forty percent of project costs for the company to cover:
– Purchasing buildings
– Hiring staff
– Paying staff
The maximum for this loan is five million dollars.
For more information on this www.sba.gov.