SBA financial assistance

The primary way the U.S. Small Business Administration (SBA) provides financial assistance for small businesses is by guaranteeing loans that small businesses secure through commercial lending institutions, like a bank.

When a small business applies for a business loan at a bank, if financing is not possible based on the borrower's financial circumstances, a request can be made to the bank to submit the loan application to the SBA for consideration for a loan guaranty.

Once approved by the SBA, with the borrower's collateral and financial guaranty, and the SBA guarantee of a portion of the loan, the lending institution is able to make the loan, and the business gets the capital it needs at terms it can afford.