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What are some benefits in getting a SBA startup loan?

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Quick Answer

The United States Small Business Administration loan program creates loan availability to new businesses that might not be able to secure traditional loan funding, according to the Journal of Accountancy. It can also offer longer repayment terms and better interest rates than a traditional loan.

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Full Answer

SBA loans are commercial loans that banks provide with a guarantee from the federal government. This guarantee makes loans for new, small businesses more attractive for banks, explains the Journal of Accountancy. Startups and businesses that do not have a long financial history may have difficulty getting a traditional loan underwritten, due to a higher risk of default. A business that does not have the necessary collateral to secure a traditional loan may also benefit from an SBA loan.

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