The Small Business Administration’s loan programs are designed to help small business that may not qualify for conventional financing through the private sector banking system. These loans are guaranteed by the SBA and therefore, more likely to be approved because of the reduced risk to the lender.
To qualify for an SBA loan, there are some basic guidelines:
• You must run a for-profit business.
• Your business must be located in the US.
• Your business must meet the SBA’s definition of a small business.
• Your business plan must demonstrate the need for an SBA loan.
Most private lenders (banks, credit unions, etc.) are familiar with SBA loan programs so interested applicants should contact their local lender for further information and assistance in the SBA loan application process.