SBA Small Business

The Small Business Administration (SBA) is a United States government agency that provides support, in the form of loan guarantees, business plans and small business counseling to entrepreneurs and small businesses. The SBA provides guarantees to the lender for part of the loan. The SBA provides up to a 90 percent guarantee on qualified borrows and loans.

SBA finance programs are not generally for persons and businesses with bad credit who can't get bank loans. Instead, the primary use of the SBA government sponsored programs is to make loans with longer repayment periods based in part upon less strict underwriting criteria than normal commercial business loans. A business can qualify for the loan even if the yearly payment approximates previous year's profit. Lower payments, longer repayment terms and relaxed underwriting criteria allow some businesses to borrow more money than otherwise.

SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA is most widely recognized for the loan programs it administers. The SBA does not provide grants or direct loans to small business owners. Instead, for certain borrowers desiring certain types of qualified loans, the SBA guarantees against default certain portions of business loans made by banks, institutional lenders and other lenders that conform to its guidelines.

One of the most popular uses of SBA loans is commercial mortgages, SBA 7(A) and SBA 504 loans, on buildings occupied or to be occupied by small business. These programs are beneficial to small business because most bank programs frequently require larger down payments and/or have repayment terms requiring borrowers refinance every five years.

If your company is interested in securing a SBA Business Loan we may be able to help you. First, research the available SBA loans at SBA Loan Requirements and then contact us.