A small business loan is a type of business financing that a small business can use to fund their day-to-day operations, investments, and other expenses. Different types of loans are available to businesses in the form of secured or unsecured loans. A secured loan is backed by collateral while an unsecured loan is not backed by any collateral but still has a lower interest rate than that of a secured loan. The amount you can borrow will depend on the type of loan you choose and your credit score.