SBA -Small Business Administration Guaranty Loan

An SBA guaranty loan approval is very difficult to obtain. The loan is actually made by a regular bank. The principal of the loan is guaranteed by the U.S. Government. In other words, the government guarantees repayment of the loan to the bank making the loan. Most banks have individuals within the bank that are responsible for SBA loan applications. You can contact any bank’s commercial loan department and request an appointment with the banks employee who is responsible for SBA loan guarantees. If you don’t have clean collateral that will be acceptable to the SBA you will be wasting your time making any loan application. It is very difficult to get the SBA to guarantee a loan that does not have more than adequate loan collateral. The majority of SBA loans are actually made to small companies that are divisions of much larger companies. Typically with an SBA loan application, over months they will continually ask you for more information and then after you have provided everything they've asked for they will deny the loan. Almost all national banks are SBA certified lenders. List the parameters of the loan and when you are talking to the commercial loan officer at the national bank who is handling your loan application you should ask him if in principle they grant this type of loans. Ask the loan officers how many applications they receive versus how many get approved. Remember, without good collateral and a demonstrable ability to repay the loan this is a waste of time.

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