SBA Financing

Small Business Administration loans are guaranteed by the federal agency and offer lenders flexible terms and low interest rates.  Banks, credit unions, community development organizations, micro-lending institutions and other partners actually make the SBA loan but for qualifying loans, the SBA guarantees part of their repayment, thus reducing the risk and allowing lenders to make loans to businesses that they would otherwise not fund. Borrowers usually receive loans with lower interest rates and longer repayment terms.  SBA loans have strict requirements and can be tough to get.