The existence of the SBA's guarantee is an inducement for the bank to make loans on terms it would otherwise not make available. The SBA guarantee does not allow the bank to disregard standard commercial loan underwriting principals such as collateral and personal guarantees. It does allow the bank to loan more money, extend longer terms and approve loans to less mature businesses than it otherwise would. The SBA's purpose under these financing programs is to help businesses gain more access to capital thereby creating jobs and expanding the tax base. Check with your local SBA Lender to determine your eligibility.
Most businesses are eligible.
SBA loans are not for everyone, but changes to the program in recent years have made it very user friendly and a financing mechanism that all businesses should at least consider. Most businesses find the bank's vault door opens a little wider when requesting an SBA loan. The balance of the space can be leased to third parties. Equipment Term Loans are available for the purchase or refinance of virtually any type of business equipment from printing presses to computers. The amount financed depends upon the resale market for the equipment.