If you’re a small business owner, or intend to be one, and are not familiar with the SBA then it’s time that you familiarize yourself. The U.S. Small Business Administration, or SBA, was founded in 1953 as an independent agency of the federal government and helps business owners start, build, and grow businesses. Since its founding, the SBA has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. Learn more about their 7(a) loan program, what it is, how it works, and how your small business can benefit.
What is it? The 7(a) loan program is the SBA’s primary program for providing financial assistance to small businesses. The terms and conditions, like the guaranty percentage and loan amount, may vary by the type of loan. There are six types of SBA 7(a) loans to cover the variety of loan needs you may have.
How does it work? The specific terms of SBA loans are negotiated between the borrower and the participating lender, subject to the requirements of the SBA. In general, there are a few provisions that apply to all SBA 7(a) loans that you can read more about here.
How do you qualify? The lender or the SBA will make the decision on whether or not you qualify for one of the types of loans and how much credit you qualify for. The decision-maker depends on the type of loan that you are wanting to apply for.
The SBA is a fantastic resource for all small business owners. Find your local SBA to learn more about their loan programs and the resources that are available to you and your business. To learn more ways our team at TBG can help you grow your business, contact us today!
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¹All sourcing provided by https://www.sba.gov
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