You might have heard SBA loans are the gold standard for small business owners who want to expand. It’s true. Funds from these loans can be used in a multitude of ways to help a small business grow.

SBA Loans: The Basics

An SBA loan is a government-guaranteed small business loan that has a long term and a low interest rate. The Small Business Administration (SBA) is the government agency that partially guarantees SBA loans and was founded in 1953 to support small business owners across the United States.

The most common misunderstanding about these loans is that the agency lends money directly to small businesses. However, the agency does not typically make direct loans. The SBA provides a guarantee on the loan, promising to reimburse the bank for a certain percentage of the loan if there is a default.

This guarantee lowers the risks to lenders, encouraging them to offer these loans to more American small businesses. Many banks and other financial institutions offer SBA loans, but their process, requirements, and fees can vary.

Where Can I Apply for an SBA Loan?

In the not-so-distant past, small business owners had one option when looking to apply for an SBA loan—walking into a bank. However, many businesses might not know that while one bank may say ‘no’, another bank will say ‘yes’ to the same potential borrower.

Technology can now help small businesses find an SBA loan provider online that is a good fit. In fact, Blue Ocean Finance has created the first online marketplace of preferred SBA lenders for small businesses. With multiple banks with varying credit requirements on our platform, we’ve been able to help many applicants successfully apply for an SBA loan who were initially rejected by their local banks.

What’s our secret? It’s no mystery; our sophisticated software allows us to match borrowers with the bank most likely to approve and fund their loan. Rather than spending your time going from bank to bank, Blue Ocean Finance can help you successfully apply for a loan quickly and efficiently.

What SBA Loans Cost

SBA loans come with different rates depending on the lender you work with; however, the SBA establishes the maximum amount that can be charged for these loans.

SBA loans from Blue Ocean Finance marketplace banks have variable interest rates and depend on the loan amount.