Published on April 11th, 2014 | by Ian


All You Ever Needed To Know About SBA Loans

If you are considering starting your own small business you might be finding that you are in need of a loan to get your business up and running.  An SBA loan might be just what you are looking for.  This is the perfect financing option available for small businesses but as a business you should do your research first to make sure you understand the complete process before beginning.  In this article you will find tips that will help you to prepare for the process.  It might sound like a lot of information but you will find that the financing terms you will receive is worth the effort and time it takes you to obtain the loan.

What Is The SBA

When we are speaking of the SBA what we are actually speaking of is the Small Business Administration.  This is an organization that was created to help small businesses get started and keep their financing options low.  There are other financing options out there for business owners but the SBA is one of the most popular organizations out there because the United States government guarantees the loan you will receive.  What you should know is that the SBA does not actually give the loan at  However it will guarantee the loan that is made through a private lender such as a bank.  These types of loans are created for businesses that do not have the low cost capital available to them.

How Does The Application Process Work

This question can be kind of tricky to answer.  The answer will depend on what type of business you want to start or obtain a loan for.  However it does not matter what type of business it is you can guarantee that you will need a large quantity of documentation.  Because the loan will be guaranteed by the government the documentation is needed to show that you are at a low risk of having the business fail.  Items that will be required when you apply for your SBA loan are a business plan that is very detailed, both personal and professional references, and detailed financial statements and what your projections are for the business for the future.

Types Of Loans

You will find that when you are working with the SBA there are several different loan types available for you.  One of the most popular is the SBA 7a loan.  This is a loan that is designed to help a small business and is flexible so it can work with many types of businesses.  This loan can be obtained from a bank and can be used for working capital, renovations, equipment, as well as other business expenses.  The repayment term can be between ten and twenty five years long.

The other common type of SBA loan available is the SBA 504 loan.  This is a loan that is intended for a business that is part of a larger development that is located within a community.  With this type of loan the business owner will also contribute a portion of the money needed with their personal money and the loan is not funded for one hundred percent of the amount needed.


When a business is in need of a loan you might find that an SBA loan is the best business decision that a business owner can make.  You will have some strict requirements to meet but in the end you will find that the financing you receive will be worth it.

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