Developed by Congress in 1953, the SBA does not provide straight to small enterprises. Alternatively, the SBA provides many different guaranty programs for loans created by qualifying banks, credit unions, and nonprofit loan providers.
The SBA states that its loan programs are experiencing “unprecedented development. Inspite of the lingering aftereffects of the commercial crisis and recession” based on the SBA, in financial 2014, the amount of 7(a) loans extended to smaller businesses jumped 12% on the year that is prior as the dollar value of those loans increased 7.4% over financial 2013.
7(a) Loan Program These loans are a really common way of funding smaller businesses, and certainly will be employed to introduce an innovative new business or expand a business that is existing.