An SBA loan is a type of loan that is guaranteed by the U.S. Small Business Administration (SBA) and is designed to help small businesses obtain financing that they might not otherwise qualify for through traditional lending channels. The SBA does not directly lend money to small businesses; instead, it guarantees a portion of the loan made by participating lenders.

SBA loans can be used for a variety of purposes, including starting or expanding a business, purchasing equipment, buying real estate, and refinancing debt. The SBA offers several types of loans, including the 7(a) loan, which is the most popular and flexible loan program, the CDC/504 loan, which is designed for real estate and equipment purchases, and the microloan program, which provides small loans to start-ups and businesses in underserved communities.

One of the main advantages of an SBA loan is that it typically has lower interest rates and longer repayment terms than traditional loans, which can make it easier for small businesses to manage their cash flow. Additionally, the SBA guarantees a portion of the loan, which reduces the risk for the lender and may make it easier for small businesses to qualify for financing.