In 1953 the United States government established the Small Business Administration (SBA) as a way of assisting entrepreneurs in forming successful small businesses through government guaranteed loans. While the SBA does make many small-business loans itself, its primary function is to guarantee the small-business loans made by private lenders.
Most SBA loans are secured through any one of the SBAs many licensed partners nationwide. Besides establishing lending guidelines for their partners, the SBA also ensures reasonable loan terms by guaranteeing major portions of the loan in the event of a borrower default. Because of the decreased liability provided by the SBA, the lender is able to offer better interest rates and options to businesses in the early stages of development.
Before we get too excited about the potential benefits of SBA loans, it may be a good idea to first…
Finish Reading: SBA Loan, Qualifying and Applying here
