How To Quickly Fund Your Side Hustle: SBA Microloans
SBA Microloans and how they can be used to fund your side hustle.
In 2022, 5.5 million new businesses were registered. But, when it comes to what is considered a side hustle, I would guess that very few of the estimated 80 million people in the US who have a side hustle are included in that 5.5 million. And, yes you heard that right. Research indicates that 39% of working Americans report having a side hustle. That would mean 80 million people in the US have a side hustle.
The research also shows more than 45% of those individuals use their side hustle to make ends meet, pay off debt faster or just to have extra spending money.
So, if you are considering starting a side hustle, I’m going to assume you’re doing it for the extra cash and you are most likely limited in the amount of money you have to invest in starting or operating your side hustle.
If that’s your situation, I would suggest you take a look at an SBA Microloan to help you launch and operate your side hustle. You may have other funding options available, but an SBA Microloan could be the perfect funding solution for launching or expanding your side hustle.
Here’s why:
1. Small-Scale Financing
A side hustle is typically a small-scale venture that you manage alongside your regular job. And, you probably don't need a huge influx of capital. SBA Microloans loan amounts range from a few thousand dollars up to a max of $50,000. That aligns perfectly with the usually modest financial requirements of a typical side hustle.
2. Startup-Friendly Terms
Launching a side hustle often means you're in the early stages of your entrepreneurship journey. This might also mean you have a limited credit history or few assets to offer as collateral. Unlike other loan options, SBA Microloans have more lenient eligibility criteria, making them accessible to many side hustle entrepreneurs.
3. Quick Access to Capital
Compared to more extensive loan programs, such as the SBA 7(a) loan, SBA Microloans offer a faster approval process. This speed ensures you can secure the funds you need promptly, enabling you to start your side hustle faster or to fuel expanding opportunities for your side hustle.
4. Support and Mentorship
SBA microloans are provided through intermediaries that will go beyond merely providing funding. Most are community non-profits that offer extremely valuable support and mentorship. These organizations understand the unique challenges faced by first time entrepreneurs and can provide guidance on business planning, marketing, and financial management.
In Conclusion
If you're considering launching a side hustle or you need help growing your side hustle, an SBA Microloan should be at the top of your list of funding options. Its small-scale financing, startup-friendly terms, flexible fund usage, quick approval process, and potential for mentorship make it the ideal choice for side hustle entrepreneurs.
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered as financial or legal advice. Always consult with qualified professionals for specific guidance tailored to your business's unique needs and circumstances.
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