The Small Business Administration, or SBA, is not a lender but a government agency set up so as to help small businesses. It partners with banks and other private lending institutions to fulfil loans, providing the capital while lenders lay out the guidelines. SBA loans are often more lenient in their terms, and with better rates than regular small business loans obtained directly through the bank. Looking at what the SBA can offer should be an important step for every entrepreneur seeking capital, whether using it as a source of funding or simply as a resource.
The above video, provided by the SBA, outlines the power of this government agency when it comes to fulfilling the wishes of small business borrowers everywhere. It shows an average small business owner, in this case the owner of a small brewery in Colorado, and how he has been helped by the SBA to achieve his goals. In the video, this entrepreneur answers questions relating to his business and the help of the SBA. Below are some of the questions proposed, designed to give an insight into life as a small business borrower:
- Why did you start a small business?
- What are some of the joys and challenges of owning a small business?
- How has SBA’s 7a loan program helped your small business?
The 7a program is the SBA’s most common loan program, providing loan guarantees primarily to banks but also to some other lending institutions.