SBA Right For You?
Are you looking for a loan for your small business, or have you been turned down for a conventional loan?
The Small Business Administration has several programs suited for small businesses — the most common of which is the 7(a) loan.
The 7(a) loan doesn't come directly from SBA, rather, an authorized SBA lender (a bank, for example) endorses the loan, and the SBA guarantees a portion of it, reducing the risk for that bank. This guaranty enables the bank to make a loan that it may have otherwise turned down.
The federal government has a vested interest in encouraging small business growth (more employment opportunities, for example). As a result, some SBA loans have less stringent requirements for owner's equity and collateral than conventional commercial loans, making the SBA an excellent financing source for start-ups, franchises, working capital and more.
Finally, SBA loans can originate from most banks/ institutions anywhere in the United States, and can be structured to accommodate state-to-state income tax practices. Most banks will walk prospective borrowers through the application process.
Loans are subject to program requirements and Fortune lending guidelines.