What are SBA loans?
One way the SBA helps existing and potential small business owners is to help them get loans through the private sector. The SBA’s current business loan portfolio of roughly 219,000 loans worth more than $45 billion makes it the largest single financial backer of U.S. businesses in the nation. An SBA loan is a loan that has been guaranteed by the U.S. Small Business Administration. Most SBA loan programs are administered through partnerships between SBA and private entities. Businesses in need of capital can seek SBA financial assistance through these lending partners (banks and other financial services organizations). The most popular SBA loan program is known as the 7(a) guaranteed loan program. In this program, a lender participates with the SBA to offer a new or expanding small business a long-term loan. To a small business borrower, the process is relatively simple: • Determine how much capital your business needs and how you plan to use it; • Apply for a business loan from a bank
