SBA Loans

SBA loans - 7A government small business loans

SBA loans or government small business loans offer a wide variety of loan guarantee programs to fund small businesses that can't otherwise qualify for loans on reasonable terms.

Commercial lenders make the loans and the SBA guarantees them because the SBA has no funds for direct lending or grants.

SBA loans (government small business loans) have two important points:

1) There is no limit on the amount of capital that can be requested.

2) SBA loans 7(a) have a maximum maturity term typically of 25 years.

To qualify, you should meet these criteria: You must have a stake in the business. The theory is if you have put your own money into your venture, then you are much more likely to push harder for the success of your business.

You should have a strong business plan showing the detailed plans on how your business can make money. How will you be able to repay the loan and does your business earn enough to cover the monthly payments.

You need a good personal credit rating. The borrower's track record in paying their bills will form an important component in the loan application process.