SBA Business Loans 6

Given your business plan and your collateral situation, you might look for special loans funded by government development agencies.

If you are in the U.S., then you are probably looking for Small Business Administration (SBA) loans. The SBA is a federal government agency that guarantees bank loans to small business. The SBA has many different programs, including a micro-loan program with less paperwork than normal for smaller loans, some special programs for women and minorities, and a loan guarantee program for small businesses.

You apply for an SBA loan at a local bank, not with the SBA. The SBA guarantees the loan but the local bank processes and funds it. Many people misunderstand the process.

If you aren’t in the U.S., then look to your local sources for investment financing and government-sponsored development agencies. In Mexico, for example, Nacional Financiera offers development funding. Many economies have similar facilities for stimulating small business and economic development.

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About the Author Tim Berry is the founder and chairman of Palo Alto Software and Follow him on Twitter @Timberry. Follow Tim on Google+ Read more »

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  • SBA Business Loans

    Hey Tim, Been a while since we last talked.

    Agreed. SBA business loans are the most vaible in the business. Those with commercial real estate are even more doable.

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  • Peter

    While the SBA is great, it still leaves many small businesses in the dust. Small businesses are very crucial to our economy, and the more we can save small businesses from falling under the better off the economy will be. Small business owners that can’t get a traditional loan can now get a business cash advance. A business cash advance is cash given up front to businesses with a low credit when they need it. Business cash advances range from $3,000 to $300,000 with the majority of businesses receiving $20,000 to $30,000.

  • Emmanuel Gabourel

    How do I obtain a SBA small business grant. What are the qualifications.
    How would I obtain a SBA small business loan if there’s any differential to the process.


    Hi Emmanuel,

    As mentioned in the article above, the best place to go for in depth information on SBA loans is the SBA website. I would also suggest contacting your local Small Business Development Center. Their counselors will have a great deal of help and information for you regarding SBA services.

  • Tyrone Nollie

    when applying for a business loan (SBA) is your acceptance based on your own cradit?

  • Victor

    SBA loans are handed over to businesses that are start-ups or SMEs. SBA is a federal government agency that administers loan guarantee programs for the growth and development of small businesses. The SBA though directly does not procure loans to businesses but then it aids financial institutions with loan guarantees and encourages them to loan out to small businesses. For more details, visit www.

  • Tim Jacobsen

    SBA Loans are becoming harder to get as well due to increased scrutiny from the govt monitoring the books. I guess hn you bail them out they have to adhere to stricter guidelines which includes letting auditors review the risks in the loans. SO, right now it is a classic chicken & egg syndrome.