Introduction: The small business administration (SBA) is a body that takes part in loan programs for small business people who, for one reason or other, do not qualify for the conventional business loans from banks. What happens is that the SBA guarantees the provider of the loan that they will pay if the borrower doesn’t pay back.
If you live in the US and you would like a small business loan, what you are really looking for is a loan from the Small Business Administration (SBA). What is the SBA and what does it do? It is a federal agency that guarantees loans with banks and other lending institutions for expanding an already existing small business or for starting one. It guarantees different kinds of loan products for different people.…show more content… First, you will not approach the SBA for the small business loan. You will have to apply for a loan from a bank and then the SBA will guarantee the loan while the bank funds it. If you look at the SBA website, you will see why this is a one-stop center for business people looking for loans. For example, there are resources like articles, tips and information to help you get started and most importantly, you will be connected with the SBA lenders.
Start with research when you intend to apply for an SBA loan. You need to know as much information as you can so that you do not apply for the loan blindly. Thankfully, the SBA website offers you everything you need to know. SBA offers assistance to many forms of small businesses, including those that are established to meet different kinds of financing needs.
Is any loan good for you? Apparently not, as there are tens, if not hundreds of programs on SBA loans. Thus, you will need to find out what will be applicable for your situation. When you go to apply for a business loan that is to be guaranteed by the SBA, you will find that the loan products are varied and so are the requirements for the same.
Why you may not get SBA-guaranteed