A SBA loan is any business loan backed by a guarantee from the Small Business Administration, which establishes guidelines for banks to follow when funding and assumes responsibility for repayment to the bank in the event of default. By backing these loans, the SBA incentivizes bank and non-bank lenders to offer financing that would otherwise be deemed too risky to provide. Though there are many different types of SBA loans, we specifically work with 7(a) and Express SBA loans. SBA loans can come with great rates and long terms, but may require collateral, use of funds stipulations and extensive application documents.