Getting a Loan from the U.S. Small Business Administration

Once a serious approach to turning a great business idea into an actual business, a review of small business loans is important.

One financing source for small businesses is the U.S. Small Business Administration (SBA).  This government agency gives qualified businesses the backing they need to get business loans from financial institutions.

These funds may be available to a borrower who has been unable to obtain a loan from a bank, or other conventional source. 

Loan proceeds can be used for both working capital and fixed assets.  The SBA requires that the business owner contribute at least 10% of the funds required for the project; but, will probably require more – often 25% to 35%.  All of this is SBA issuing guarantee loans, made and processed by a bank.

The purpose of SBA funding is to provide more security to lenders (banks) in order to promote their lending of money to small ventures which would otherwise be too risky.  Interest rates and repayment terms are up to the lending institution, and will not be substantially different from what the bank usually charges.

With plenty of forms and worksheets to help, UBA makes the process of applying for the 7(a) Loan Guaranty Program, or the504 Program less overwhelming.  UBA can help move through the process efficiently and effectively.