Reasons to Apply for an SBA Loan

There are three good reasons to choose an apply for a SBA loan for your business. A Small Business Administration loan, or SBA loan, is a loan backed by the federal government's Small Business Administration office.

1- SBA Loans are Safe

The SBA does not give you the money directly - instead, it guarantees a loan through a private lender. A lender may be more willing to work with you because of the additional security provided by the SBA's guarantee.

2 -SBA Loans Have Better Interest Rates

The SBA also protects small businesses from costly interest rates. The SBA sets a maximum interest rate for all SBA loans. Each lender can set specific interest rate for your loan, but they may not charge a higher rate than the SBA permits.

3 - SBA Loans Cover Many Needs

There are SBA loans for almost any business need: equipment, furniture, new computers, renovations, or even real estate. The SBA also has loan programs for more complex business modernization programs, or smaller "microloans", if all you need is a few thousand dollars. Depending on your business, the SBA may also help you with loans to support import/export programs, pollution control programs, seasonal business needs, or even disaster recovery.