An SBA loan is backed up by U.S. Small Business Administration
An SBA loan is a low-interest, government-backed loan, with the longest terms and lowest rates available. Repaid monthly, it is available to businesses that have been in business for at least two years and has a 640 FICO score or higher. Collateral is required for loans of more than $25,000.
An SBA loan is backed by a guarantee from the U.S. Small Business Administration. The 7(a) program that BFNYC offers, represents the bulk of the SBA-backed lending. Because of their federal guarantee, SBA loans are the lowest cost long-term funding available to small businesses and come with single digit rates.