A small business loan backed by the U.S Small Business Administration is the most affordable way to finance your business. With flexible terms and low-interest rates that are accessible to American business owners and entrepreneurs who have well-established businesses with strong credit history.
An SBA loan is a form of conventional financing that has very stringent requirements, which are partially guaranteed by the U.S. Small Business Administration, and are issued by authorized lenders such as GoKapital.
With these government-backed loan programs, the Small Business Administration is helping entrepreneurs, veterans, women, and minorities get easy access to lending opportunities by offering banks and private lenders a partial repayment in case the businesses defaults on their payments. Therefore, reducing the risk for lenders translates into flexible terms, low annual percentage rates (APR), low-interest, and low down payments for borrowers.
It is important to remember that the Small Business Administration doesn’t lend money directly to small business owners, instead, it sets guidelines for loans made by its partnering lenders.