About SBA Loans
SBA (Small Business Administration) loans are government-backed financing options designed to help small businesses access affordable capital. These loans are issued by approved lenders — such as banks and credit unions — and guaranteed by the SBA, which reduces risk for lenders and allows borrowers to benefit from longer terms and lower interest rates compared to many conventional loans.
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SBA loans can be used for a wide range of business needs, including:
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Working capital
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Equipment purchases
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Commercial real estate acquisition
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Debt refinancing
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Business expansion
How do SBA Loans Work?
The SBA does not lend money directly. Instead, it partners with approved lenders to provide financing, guaranteeing a percentage of the loan amount (typically 50% to 85%). This guarantee reduces risk for the lender and increases your chances of approval.
To qualify, borrowers must complete a standard loan application and undergo underwriting, along with additional SBA documentation requirements. Once approved, businesses receive flexible financing options tailored for sustainable growth.
Key Benefits of SBA Loans:
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Competitive interest rates
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Longer repayment terms (up to 25 years)
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Lower down payments
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Easier qualification compared to traditional loans