SBA small business loans are offered to start-up businesses by the Small Business Administration or the SBA, in order to provide them financial assistance. The SBA is a United States government agency offering loans to small business owners who do not have the eligibility to avail loans from conventional lending sources. These loans are designed with the sole aim of supporting the establishment and growth of small enterprises to boost the financial condition of the nation. However, it is important to understand how the SBA works in order to benefit from the various loan programs offered by them.

The Small Business Administration does not provide loans directly to the borrowers. Instead, they work in partnership with various private-sector lenders, community development organizations and micro-lending institutions to provide these loans. In the lending process, they serve the purpose of setting the terms and conditions and regulating the loans.

Small businesses are more in need of loans than established ones. The simple reason for this being the fact that they are starting a new journey and lack adequate money to make investments. Hence, it would be extremely difficult for them to secure loans at high-interest rates. The SBA, unlike banks and other conventional lending sources, provides loans to business owners at lower interest rates, making it easier for them to repay the loans.