What is an SBA loan? Will it work for me?
An SBA loan is a Small Business loan that is typically provided by the government. In order to qualify for this kind of loan, you need to show proof that you have applied for a commercial loan and have been turned down. Many people prefer these because the Small Business Administration guarantees them. This guarantees a loan principal of around 80% and only requires a minimal down payment. However, these kinds of loans are not always easy to acquire. The application process is fairly extensive, and they may also ask you to cross-collateralize your primary residence or other properties. This means that if you want to access equity on these assets later, it may impede you doing so. SBA loans may be perfect for some people, but they aren’t suitable everyone.
