An SBA Loan is partially guaranteed by the US Small Business Administration and is aimed at helping small businesses grow. This type of loan can be used by for startup, acquisition, equipment, real estate and a few select other purposes. The requirements to qualify are often more stringent, but on qualification, often result in lower interest rates due to government backing.
An SBA Loan is partially guaranteed by the US Small Business Administration and is aimed at helping small businesses grow
How SBA Loans work
There are multiple types of SBA Loans available to small business owners, each with specific requirements and usage restrictions associated with them. Generally, there are stricter requirements associated with the application process including a complete business plan, as well as current and projected financials. However, due to the lower risk of default many lenders feel safer issuing these types of loans.
Qualifying For A Small Business Administration Loan
Though this type of loan is designed to be easy to qualify for, it does have some requirements for time in business and industry, as well as the requirement that the business not access capital elsewhere (within reasonable constraints). Additionally, good or excellent credit is required.