An SBA loan is any business financing loan that is partially guaranteed by the government (the Small Business Administration) – not to be confused with the SBA loaning the money out itself. Being guaranteed by the SBA reduces risk for the lender, which may make it easier for the business owner to get a loan.
- Lowest interest rates
- Longest repayment terms
- Use for a variety of business services
- Lengthy approval process
- Large amount of paperwork
- Might require collateral
- Good to excellent credit required