The Pros and Cons of an SBA Loan
Updated: Jun 4
An SBA loan is a long-term, low-interest small business loan partially guaranteed by the government. This could be real estate, equipment or machinery, expansion capital, funding the purchase of another business, disaster recovery or even, in some cases, refinancing other debts.
Under the U.S. Small Business Administration’s various “SBA loan” programs, you can borrow money for nearly any business purpose—including adding to working capital, purchasing inventory or equipment, refinancing other debts, buying real estate or even funding the acquisition of other businesses.
Before you apply, understand the pros and cons of an SBA loan....
Lowest down payment
Longest payment terms
Relatively low interest rates
Used for a wide variety of purposes
Lengthy application process
Longer approval times
Variable interest rates may increase
May require collateral
To learn more about SBA loans, find out what documents you need to apply, and to submit an application visit our SBA Loan Page.