SBA Loans

by Gerri Detweiler

The U.S. Small Business Administration (SBA) is a federal agency that helps entrepreneurs manage their businesses and gain access to capital. SBA loans have some of the lowest interest rates available, but usually require strong personal and/or business credit. The SBA pre-screens loan applicants with FICO’s SBSS score, a small business credit score. Most businesses, even younger ones, can qualify for an SBA loan–but having a limited business history makes it more difficult.

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What You Need to Know About SBA Loans

Pros: Cons:
Very low interest rates Lengthy paperwork
Longer repayment terms Longer wait time
Very low down payment Requires good credit
Available for many uses May require collateral
Helps build business credit


Best Uses for SBA Loans:

  • Working capital
  • Purchasing equipment
  • Purchasing commercial real estate
  • Refinancing
  • Acquiring other businesses

Nav’s verdict:

Go for it! SBA loan applications require time, effort and good credit. But they also have some of the lowest interest rates and most favorable repayment terms available. The money you could save is well worth the effort.

SBA Loan Offers


SBA Loan by SmartBiz

SmartBiz combines the benefits of a traditional SBA loan without the long and tedious application Learn More

SBA Express Loan by Celtic Bank

Celtic Bank is a nationwide small business lender specializing in SBA loans. The Celtic Bank Learn More
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About Author

Gerri Detweiler

Gerri Detweiler

Credit expert Gerri Detweiler is education director for Nav. She has more than three decades of experience in consumer credit education, has been interviewed in more than 3500 news stories, and answered over 10,000 credit questions online. Her articles have been widely syndicated on sites such as MSN, Forbes, and MarketWatch. She is the author or coauthor of five books, including Finance Your Own Business: Get on the Financing Fast Track. She has testified before Congress on consumer credit legislation.