Small Business Administration (SBA) was founded in 1953 as a way to assist the small business community in the United States. An SBA loan is guaranteed partially by the gov’t with a long-term and low-interest rates.
The SBA gives a guarantee on the loan, to the bank for a certain percentage of the loan if a default occurs on the loan.
With the SBA’s guarantee, banks have a lower risk, which stimulates and promotes more lending to the small business community.
The process, requirements and fees will depend on the bank or institution providing the SBA loan but typically takes a minimum of 9 months to complete.