The recession has hit the United States economy hard. There has been news of gloom and doom all around. Businesses of all shapes and sizes have been going bust and bankrupt. This created an atmosphere that hit the business houses hard and especially the small businesses. The small businesses have run out of liquidity and that has severely impacted their ability to do business.

With the ambience of severe distrust in disbursal of loans to the smaller enterprises by the banks and other lending institutions, the smaller enterprises are hamstrung because of the lack of funds.

The scarcity in lending has also been because of the defaulting over the loans by many borrowers. Business Loans are going to play a critical role in reviving the fortunes of the small business houses and thereby improving the economy in general.

The Federal Government acknowledges the fact that with the amount of money in the economy going down, spending is going to plummet and so will the economy. Small business houses, which have a rough time obtaining finance from the institutional lenders, have been struggling to keep their business up.

These institutional lenders have refused to give business loans as they fear that these will be unsecured loans and hence will never come back.

The Small Business Administration (SBA) set up in 1953 as an autonomous institution to provide financial assistance to small businesses has a critical role to play in reviving the fortunes of small business.

Small Business Administration (SBA) understands that the institutional commercial lenders in the market would not offer the small businesses the required capital to keep their business growing and thriving with the financial stimulus.

Small Business Administration (SBA) has developed multiple financial assistance programs specifically for the small business houses. These programs will also enable the institutional lenders quell their fears about unsecured business loan.

The Small Business Administration (SBA) will assist the small businesses in understanding how to get a business loan. SBA has three separate loan assistance programs for the small businesses.

Each of these assistance programs is planned and aimed to cover all kinds of businesses thus providing the business owners the scope to apply for varied types of loans, as required. Since the financial assistance programs are actually delivered by the Small Business Administrations’ partners and these are not really direct assistance programs from Small Business Administration, all small businesses need to consult the respective District offices or can also get in touch with the institutional lending associates in their specific area prior to applying for any kind of loan.

The Business Loans hence, have played a stellar role in lifting the business morale of the sagging small enterprises in the United States by arranging the much needed financial stimulus.