Choice2

Hi Everybody,

I guess now it’s time to get closer to the Government loans as this type of funding is neglected unfairly very often.

Our experience shows that many business people usually know something about grants, but government loans are terra incognita for most of them. That’s why we offer you to learn more about the Difference Between Government Loans And Bank Interest Loans.

Usually, when looking for financing, business owners first of all visit traditional financial institutions. But are the right places to start shopping around for a loan? Let’s compare the terms that financial institutions offer vs. the government’s ones with their interest-free loans.


Traditional Loan Government Loan
Interest rate applies. Rate may be variable No Interest rate
Repayment usually starts 1 month after advancing the loan The repayment period is delayed for up to 12 months after the end of the project the loan has been obtained for
Hidden fees apply (processing, registration, application, early settlement, etc) In rare cases, registration fee applies
Late or missing payment fee are set as high as banks are allowed to Late or missing payment fee are set to industry minimum
Repayment period is fixed Repayment period may be extended in certain cases
Loan guarantee or security may be required (cash, collateral, asset) Loan security is not required
Credit rating and history are used to set interest rate and loan terms Credit rating and history are not part of a due diligence
Loan may be borrowed in foreign currency and is subject to currency risk and exchange rate fluctuations Loans are borrowed in national currency
Insurance may be required Insurance is not required
Any document or proof may be requested to support the application Specific list of documents required for the application
Unavailable or unfavourable for start-ups Some government loans are specifically designed and available for start-ups
No reporting is required as long as loan is paid Regular reporting is required



As you can see, there are way more advantages of government interest-free loans though they are not always known. Government loans are good to finance purchase or upgrade of equipment, business expansion, research and development, land purchase, etc. Don’t miss government loans!

P.S. Just few numbers for warming up: Investing in Business Innovation offers you up to $1,000,000; Advanced Manufacturing Fund – $10,000,000 – $20,000,000; Investing in Business Growth and Productivity – up to $20,000,000. That’s not bad at all! What do you think?