Small Business Administration (SBA) Loans

The term Small Business Administration (SBA) refers to a U.S. government agency that is designed to bolster and promote the economy by assisting the country's small businesses. Established in 1953, the SBA's largest function is to counsel individuals who want to start and grow their own businesses. It provides a series of tools on its website to assist new and existing small business owners. The agency is headed by an administrator and deputy administrator and also has a chief counsel for advocacy and inspector general—all of which are confirmed by the Senate. The SBA has at least one office in every state.

The Small Business Administration offers substantial educational information with a specific focus on assisting small businesses to develop and grow. As noted above, the agency has numerous tools for businesses that can be accessed on its website, including a small business planner and additional training programs. The SBA has many resources available for people who want to start their own small businesses. If you're one of those people, this section highlights some of these resources that can take you from start to finish.

The loan programs offered through the SBA are among the most visible elements the agency provides and come with longer repayment periods for small businesses. Keep in mind that the agency doesn't actually issue loans—with the exception of disaster relief loans. Instead, loans are backed or guaranteed by the SBA and issued directly by lenders that meet the agency’s guidelines. Small businesses qualify for loans more easily when they are guaranteed by the SBA. The agency also allows entrepreneurs to make lower payments for a longer period of time. Despite numerous attempts to do away with the SBA entirely, many political officials and offices continue to support the agency. The SBA’s ability to offer loans has also been significantly strengthened by the American Recovery and Reinvestment Act (ARRA) of 2009 and the Small Business Jobs Act of 2010.