What is SBA?
The Small Business Administration or SBA is an agency founded by the United States government to give support to small businesses and entrepreneurs. The agency formed to help strengthen and support the economy of the nation helps small business become viable. The agency also helps people to start new businesses. The agency also helps in helping communities to recover economically after any disaster. Capital, Contracts and counselling, commonly known as the ’3 Cs’ of the agency, depicts the activities of the agency.
These loans given by banks and by other lenders and conform to the guidelines that have been set up by the SBA. Such loans have loosened criteria, longer repayment period and lower payments to help the small business that opt for such financial assistance. The SBA does not resort to direct lending and only gives a guarantee against default for some business financial assistance made by lending institutions. The Small business Administration only provides Disaster Relief Loans directly to the people.