Loan Guarantee Program
A percentage of the loan is guaranteed by the SBA, enabling lenders to accept greater risk on small businesses that may not currently be financially strong enough to obtain a conventional small business bank loan.
Two significant features that SBA programs offer are lower down payments and longer term financing. These help a small business that is just starting out, or about to expand, to keep more cash flow for operational expenses and put less towards debt repayment.
SBA loans are offered for business purposes, such as owner-occupied commercial real estate, business acquisitions and start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt refinancing.