SBA Loans – The Small Business Administration offers a variety of loan programs to small businesses. The SBA doesn’t disburse loans directly; rather it provides lenders with a Federal guarantee for a defined maximum and minimum amount. Because of this, the terms of an SBA loan will vary based on lender-specific guidelines.
For the most part, these loans have lower down payments and longer terms. One of the most popular programs is the SBA 7(a) loan, which was established to assist existing small businesses and start-ups obtain financing for various general business purposes.
The most common uses of loans under this program include working capital, machinery and equipment, and commercial real estate.
SBA Paycheck Protection Program (PPP) is also available offering a 1% fixed APR rate for the life of the loan, payments are deferred for 10 months, and you may qualify for loan forgiveness.