Quick Answer
SBA financing is small-business credit partially guaranteed by the U.S. Small Business Administration - reducing lender risk and expanding access to credit for qualifying businesses.
Key Takeaways
- 7(a) is the SBA's largest general-purpose program.
- 504 loans finance fixed assets like real estate and equipment.
- Microloans serve very small financing needs.
Why the Guarantee Matters
The SBA guarantee shifts a portion of default risk from the lender to the federal government, enabling lenders to extend credit to borrowers who would not otherwise qualify.
Frequently Asked Questions
Does SBA lend directly?
Generally no. The SBA guarantees loans made by approved lenders rather than lending directly in most programs.