SBA loan
Definition
A low-interest loan partially guaranteed by the U.S. Small Business Administration (SBA), designed to encourage banks to lend to small businesses that might otherwise struggle to secure traditional financing.
Any of several SBA-backed programs (e.g., 7(a), 504, or microloans) providing capital for startups, expansions, equipment purchases, or disaster recovery, with favorable terms like longer repayment periods and reduced down payments.
Examples
After his crypto side hustle tanked, Alex dusted off his business plan and snagged an SBA loan to pivot to ethically sourced avocado toast trucks.
With an SBA loan fueling her glow-up, Priya transformed her garage Etsy shop into a boutique empire that even her goldfish could finance.
Dave's 'world's largest rubber duck' factory finally floated thanks to an SBA loan – talk about buoyant business prospects.
Securing an SBA loan felt like winning the entrepreneurial lottery, minus the ticket price and with paperwork that could wallpaper a mansion.