🇺🇸 SBA Loans

What is an SBA Loan?

An SBA loan is a business loan partially guaranteed by the U.S. Small Business Administration (SBA). This guarantee reduces the loan risk for partner lenders, making it easier for small businesses to get growth funding for working capital, real estate, or equipment.

The SBA does not directly lend the money but offers a backing guarantee to registered lenders, encouraging them to approve more loans that businesses might not otherwise qualify for.

Common SBA Loan Types

• 7(a) Loans: The most common — up to $5 million, used for working capital, equipment, real estate, or refinancing.
• 504 Loans: For fixed assets like real estate and equipment, often with low down payments.
• Microloans: Up to $50,000 for startups and small businesses needing smaller amounts.

How It Works

1. You apply for the loan through an SBA-registered lender (not the SBA directly)
2. The lender requests a guarantee from the SBA for a portion of the loan (50–85%)
3. If you default, the SBA pays the lender the guaranteed portion — reducing the lender's risk
4. Because risk is reduced, you receive lower interest rates and better terms

Key Benefits

• Easier to qualify: SBA guarantee makes funding accessible for businesses that don't meet strict conventional criteria
• Favorable terms: Lower down payments, lower interest rates, longer repayment periods
• Versatile use: Working capital, equipment, real estate, startup costs, refinancing

GGA's SBA Network

Greater Globe Alliance has several SBA-certified registered lenders in our network. Our team helps your business use and obtain these types of guarantees as a financing tool. We will help you understand and navigate through all the intricacies with a clear understanding of benefits, so your business knows how and when to use the right financing tool.

Will not affect your business or personal credit score