An SBA Loan is a loan issued by a traditional lender or alternative finance company this is backed by a guarantee from the U.S. Small Business Administration. They are long-term, low interest small business loans partly backed by the U.S. Government. Repaid monthly. Collateral is required for loans of more than $25,000 in some situations. There are four different types of loan guarantee programs through the SBA: 7(a) loans, CDC 504 loans, micro loans and disaster loans.
As it turns out, many businesses – including small or newer ones – can qualify for an SBA loan. The most import factor will be your credit score: SBA loans are for business owners with strong borrowing histories.
Don’t believe any lender who promises to provide SBA loans today: It’s definitely not a loan that you’ll apply to and receive the funding for even within a few days. That said, SBA loans are certainly fit for growing your business and refinancing your other debt at the lowest available rates.
