SBA loans are also known as small business administration loans. That is because they are meant to get small business up on their feet so that they can start earning money sooner. This is ideal because it can take time to gather enough initial capital to start a business venture. SBA’s are also ideal because sometimes it can be hard to get a traditional loan if you are just starting out.
In this video, you will learn more about micro SBA loans and why you should consider one.
The difference between a micro SBA loan and a normal SBA loan is the amount of money being lent. A micro SBA loan is specifically for less than $50,000. These loans also work a little bit differently. While normal SBA loans involve you working with the SBA directly to get a loan, a micro SBA loan uses a network of trusted lenders that are handpicked by the SBA. These lenders make their own decision about the loans. However, they are more likely to give you a loan because the SBA guarantees a certain amount of the loan. This removes some of the risk for the lenders.