An SBA Loan is a type of government-backed loan offered by the U.S. Small Business Administration (SBA) to help small businesses secure financing. The SBA does not directly lend money but partners with approved lenders, like banks and credit unions, to guarantee a portion of the loan. This guarantee reduces the lender's risk, making it easier for small businesses to qualify for funding with favorable terms, such as lower interest rates and longer repayment periods. SBA loans are commonly used for working capital, equipment purchases, real estate, or business expansion. Popular SBA loan programs include the 7(a) Loan, 504 Loan, and Microloan Program.