This post was originally published on On Deck
Access to reliable funding can make a big difference when you’re running a business. Whether you need working capital, funds for equipment purchases or financing for real estate, finding the right loan program can help you move forward with confidence.
One option many small business owners consider is an SBA loan. Backed by the U.S. Small Business Administration, these loans are designed to make business financing more accessible by reducing risk for lenders.
But what exactly is an SBA loan — and how does it work?
Here’s what entrepreneurs should know about SBA loan programs, eligibility requirements and how they compare to other business loan options.
What is an SBA loan?
An SBA loan is a business loan that is partially guaranteed by the U.S. Small Business Administration (SBA). The SBA doesn’t lend money directly in most cases. Instead, it partners with private lenders such as banks and credit unions.
Through this arrangement, the SBA provides a guarantee on a portion of the loan amount. This reduces the risk for lenders and can make it easier for qualified borrowers to access financing.
SBA loans are commonly used by small business owners who need funding for a range of business purposes,
— Read the rest of this post, which was originally published on On Deck.
