Small business administration (SBA) loans help small businesses get loans that they wouldn’t be able to get otherwise. So, if you have been having trouble getting a conventional business loan, or you have already been rejected, you could still have a high chance of getting an SBA loan. Small business administration loan agencies are independent agencies of the federal government that strive to help small businesses to grow. The amount of money borrowed can be unlimited, or as little as around 5,000 depending on your needs and qualifications. The range of the minimum amount is between approx. 5,000 and 50,000 dollars depending on which lender you use through the agency, and the maximum amount will be anywhere between approx. one million dollars to an unlimited amount, again, dependent on which SBA lender you choose. There are many websites on-line that offer information and lists of lenders through SBA loans with a list of their maximum and minimum loan amounts.
Although SBA loans work with the lenders to help ensure you are able to get the loan (such as making guarantees to the lenders should you default on the loan), you should still choose your lender wisely with a little bit of research done ahead of time since in the end, it will still be the decision of the lender whether or not you get the loan. Even though your chances of getting the loan will be higher going through an SBA loan agency, a lot more paperwork will be required of you since the government will be involved, and it will most likely take much longer to get the loan, perhaps a month or even longer. Typically, minorities are not treated special, and interest rates could increase, but they will probably not drop in comparison to a conventional business loan. You also may not get all the money at once. You may get the money in stages, or as reimbursement (as your business spends the money, you get reimbursed for it up to a certain amount).