Anyone who dreams of being an entrepreneur knows that the journey to business ownership is far from easy. Luckily, there are some financing options out there that can help first-time company owners if they meet the set of specific qualifications. The United States Small Business Administration was formed in the twentieth century with the focus of helping small business owners achieve their dreams. Because there are many different financial products that are backed by the SBA, it’s important for potential company owners to know the differences between the most common ones. Take the time to research the specifics before you start filling out your application.

Understand Your Situation

When entrepreneurs are in the process of researching exactly which type of SBA loan will be good for their particular endeavor, it’s important to consider whether or not there are partners involved in this decision. If you’re going into business with one or more people, then the group investment may be better off with a different kind of financing than if you were going it alone. Another key point to think about is whether or not you plan to purchase a property to house your business. Partners and property are major factors to put into perspective when you’re choosing business financing.

Know the Differences

After you’ve taken the time to explore what types of needs your new business will have, it’s a good idea to look for the right kind of SBA loan. The two most popular financing methods are the 7a and 504 loans. For the most part, the 7a loan works for people who are purchasing a business and a piece of real estate at the same time. When your endeavor involves multiple financing partners, then the 504 loans may be a better choice. These loans take the time to consider each investor’s individual contribution so that the loan terms are fair to each person.

Choose the Right Product

It’s important to take the time to research each kind of SBA loan before making the choice to apply. 504 and 7a loans aren’t the only types of SBA funding available out there. Some unique situations qualify business owners for products like microloans. When you don’t need a large amount of money to fund your venture, these smaller types of loans might be a good fit.

Luckily, the Small Business Administration offers many great products to help company owners. Taking the time to research your options will help you find success.