An SBA backed loan is a loan extended to a small business by a bank or other lender with up to 80 percent of the principle guaranteed by the U.S. Small Business Administration.
An SBA backed loan is a loan extended to a small business by a bank or other lender with up to 80 percent of the principle guaranteed by the U.S. Small Business Administration.
The SBA offers a number of loan programs to encourage lenders to work with small businesses that might otherwise seem like too much of a risk. By backing the principle, the lender’s risk is reduced, and small businesses have improved access to financing.
The different types of SBA backed loans include: