FEDERAL LOANS FOR YOUR FAMILY OR BUSINESS Are you eligible to receive government financial assistance? If you should need such aid, in the form of a loan or loan guarantee, how and where can you apply? While most people have heard of the SBA and FHA loan programs, many may not realize that there are other federal agencies that make or guarantee loans. Housing Loans The Federal Housing Administration provides insurance of loans for purchase of 1 to 4 family dwellings, including mobile homes, and refinancing of indebtedness on existing housing. They also have a program of financing for alterations, repairs and improvements to homes. FHA loans are applied for through approved lenders such as banks and savings & loan associations. They are not applied for directly. There is another FHA -- the Farmers Home Administration -- under the Department of Agriculture, and many people are unaware of this second agency. It will provide loans to construct, repair or purchase homes in open country and in rural communities of not more than 50,000 population. Urban residents retiring to rural communities, as well as existing rural residents, may find that they are eligible. Application should be made to the local FHA office -- they will be found in most county seats. One of the easiest programs to qualify for is the insured loan program of the Veteran's Administration. Virtually all veterans are eligible, and if eligible, you will find that obtaining a loan through VA is much easier than any other program, and the terms are better. Up to 95% of the price of the home can be financed. Small Business Loans Many people are finding advantages in starting or buying a family business. The program of the Small Business Administration is quite well known. There are actually two separate programs, direct loans, and guaranteed loans made through local banks or other approved lenders. The SBA is very short of funds at present, so direct loans are nearly impossible to obtain. The bank guarantee program continues to grow however, and guarantees up to 90% of the amount lent by the bank. SBA has also started a program of guaranteeing loans through commercial lenders, and the possibilities here are even better than at the banks. In particular, contact The Money Store, which now has one of the largest SBA loan programs in the country. SBA also has disaster loans for small businesses in disaster areas, and economic opportunity loans for low-income people who can demonstrate good management skills. These programs can also be arranged through banks, and it is a good idea to talk to both your bank and the SBA about the possibilities. Businessmen or prospective business owners who are unable to get an SBA loan often do not realize that there are other federal agencies which make business loans. The Farmers Home Administration has a program of business and industrial loans for projects located in towns of under 50,000 population; although preference is given to those in towns of under 25,000 population, rural communities, and open country. The Economic Development Administration has a program of loans in areas which have been designated as economically depressed, and this actually covers a very large percentage of the country. Preference goes to firms which will have an effect on increasing employment in the area, and these loans may be combined with SBA loans. The interest rates are very low. Full information may be obtained from the Economic Development Administration, Washington, D.C. 20230. Education Loans Best known are the Federally Insured Student Loans which can be arranged through nearly any bank. National Defense Student Loans must be arranged through the college or university being attended, but the Federally Insured Student Loans are also available for study at private trade schools and similar educational opportunities. Repayment does not begin until after graduation. Less known in the educational loan field are nursing study loans, arranged through the school, and medical study loans arranged the same way. The Veterans Administration does not have a loan program, but does have educational grants (non- repayable) for veterans. So before you decide that your dreams are beyond your means, it will pay you to look into all of the federal loan programs which might help your situation. Often a combination of programs can do the trick, such as buying a home under an FHA loan, and then getting an SBA loan for a small business operated from your garage.