US Small Business Administration (SBA) provides long-term business financing and access to loans. The SBA generally does not make direct loans to businesses, but instead acts as a guarantor for loans made by banks and other private lenders. A SBA guaranteed loan is possibly the best way for small businesses to obtain long-term financing.
SBA loans can be used for most business purposes, including renovation, construction, purchasing inventory and fixtures, and working capital.
Maturities for the loans range from 7 to 25 years, depending on the purpose.
There are fees and interest rates associated with SBA loans.
Benefits include longer terms and larger loan amounts than you might be able to obtain through a conventional loan.
SBA loans offer competitive interest rates.
Loans do not require balloon payments or annual reviews.