What is an SBA Loan?

An SBA Loan is a business loan guaranteed by the United States Small Business Administration and offered through lenders, community development organizations, and micro-lending institutions.

The SBA reduces risk for lenders. SBA agrees to pay the lender a percentage of any loss in the case of a default on the loan and enables easier access to capital, which makes it easier for small businesses to get loans.

SBA sets guidelines for loans that are made by partnering lenders. General credit requirements, loan maximums, and eligibility factors apply, and loan repayment terms vary according to several factors. Since it is a bank loan, applications are submitted to the bank, the bank handles the loan closing process and disburses the loan proceeds, and loan payments are paid to the bank.

Depending upon the type of SBA loan and usage of money, repayment periods range from seven years to 25 years. Rates and fees on SBA-guaranteed loans tend to be some of the lowest available.

About the SBA

The U.S. Small Business Administration (SBA) was created in 1953 to help small business owners and entrepreneurs. SBA is a cabinet-level federal agency and is fully dedicated to small business. SBA provides counseling, capital, and contracting expertise for small businesses.

SBA also works with other federal departments and agencies to award a percentage of government contracts to small businesses and advocates for small businesses by reviewing Congressional legislation, testifying on behalf of small businesses, and assessing the impact of regulations on small businesses.

For more information about SBA loans including specific eligibility and application requirements, visit https://www.sba.gov/funding-programs/loans

To learn more about business loans provided by Enterprise Bank, including SBA loans, visit https://www.enterprisebanking.com/business/loans/commercial-loans or contact us at 877-0671-2265.

Enterprise Bank is approved to offer SBA loan products under the SBA 7(a) and 504 loan programs as an authorized lender.

More Learning

Glossary of Cash Management Terms

Brush up on your cash management terminology with this glossary of terms. 

What is a Business Line of Credit?

A business line of credit provides access to short-term funding that can be used for business expenses as they arise and is often used to help with business cycles or seasonal cash flow fluctuations.

What is Cash Management?

In the simplest terms, cash management is the process of collecting and managing cash flows and is a key component of a company's financial stability.

Leaving Site Confirmation