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    4 Replies Latest reply on Apr 21, 2008 10:45 PM by keylaleigh

    SBA loan vs. "regular" loan

    keylaleigh Newbie
      I have done a lot of research on SBA loans, and I'm wondering if, from my view as the borrower, there is any difference between an SBA loan and a regular loan? The loan will be for less than $200,000, so if I understand right, it would go for 7 years, correct? Thanks for the input.
        • Re: SBA loan vs. "regular" loan
          LUCKIEST Guide

          SBA loan vs. "regular" loan.
          As I understand a SBA loan, a portion of the loan is guaranteed by the government


          According to the agency, the mission of the Small Business
          Administration (SBA) is "to maintain and strengthen the Nation's
          economy by aiding, counseling, assisting, and protecting the interests
          of small businesses and by helping businesses and families recover from
          economic and other disasters."


          The most visible elements of the administration are the loan programs it administers. The SBA itself does not grant loans with the exception of Disaster Relief Loans.
          Instead, the SBA guarantees against default certain portions of
          business loans made by banks and other lenders that conform to its


          Hope this helps, LUCKIEST
          • Re: SBA loan vs. "regular" loan
            kwkzana Newbie
            hi there

            try looking at a sight where they find loans from numerous sourses....hope this helps
            • Re: SBA loan vs. "regular" loan
              mlebovits Newbie

              From the view of the borrower, there are a few key differences that may change the repayment amount when comparing SBA loans and conventional loans:

              An SBA approved lender is only supposed to make an SBA loan when no other sources of conventional bank financing are available to the borrower due to a higher risk profile. Thus, the pricing of the SBA loan will reflect the greater risk and should be more costly than a conventional bank loan in terms of both the interest rate and the up-front SBA guarantee fees.

              On the other hand, the duration of an SBA term loans may be longer than a conventional bank term loan. SBA term loans under the 7a program are as long as ten years. This longer loan term can create a lower payment of principal when compared to a conventional bank loan.

              I hope this response is helpful. Feel free to let me know if you have any further questions.

              Marshall Lebovits