Using Small Business Administration (SBA) Loans to Raise Capital for Your Business


The SBA loan program is a government-sponsored program created to encourage, assist, and protect small businesses. With few exceptions, the SBA does not loan directly to businesses. Rather, it guarantees loans provided by banks and other financial organizations, and establishes guidelines for the loans. SBA guarantees help minimize the risk assumed by the lenders. In most cases, SBA loans are not granted to businesses that may otherwise be qualified for financing at reasonable terms.

SBA loan programs are funded by the government, and may change as new legislation is passed to address changing economic needs. Currently, there are several types of SBA loans available, including the 7(a) Loan Program, the CDC/504 Loan Program, the Microloan Program, and the Disaster Assistance Program. The 7(a) Loan Program is the most commonly used of all the SBA programs. Please visit with any questions about available programs.

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