What is SBA 7 (a)?
An SBA 7(a) loan is a small business loan that eliminates some of the risk for the lending institution with a partial guarantee made by the Small Business Administration. In other words, the government guarantees part of it, but it is not a business capital loan that is made by the government. Rather, it is made by an approved lender. The lender is able to provide better terms knowing that if the borrower fails to pay back the loan, the SBA will cover a portion of the loaned amount. The application process can be thorough and somewhat restrictive.
- Backed by the Small Business Administration
- Low-risk SBA-guaranteed Advance
- Favorable Loan Terms