The Small Business Agency (SBA) provides access to long and short-term loans. SBA loans come from a local bank, not from the Agency itself; the Agency will back up applicants with a proven record of paying their debts and compliance with the law. Not every business is small and to be eligible for SBA loans, your business must meet the stated size restrictions. Certain guarantees may be required to secure the loan, depending on the purpose of the loan and local regulations.
SBA loans provide advantages for small business owners:
- SBA loans usually have lower down payments and longer repayment terms than other alternatives. Favorable conditions apply as the Agency guarantees a part of the loan.
- SBA loans offer a variety of purposes and terms to facilitate businesses growth.
- Use of funds for equipment purchases, real estate purchases and working capital.
- SBA loans are typically easier to qualify for than conventional business loans.
- Any applicable fees may be included directly into the loan.
The purpose of SBA loans is to give growing businesses and start-ups easy access to financing. SBA Loans are extremely convenient for small business owners and those looking to open a new business, including part-time businesses.