There are five main types of business loans that are relevant for startups: SBA small business loans, business credit lines, short term loans, invoice financing, and merchant cash advances. Let’s take a closer look at each one.
A SBA small business loan is a loan that is backed by the Small Business Administration (SBA). Founded in 1953, the SBA is a federal government program that provides support to small business owners in the form of mentorship, workshops, counseling, and small business loans.
While the loans are backed by the SBA, they don’t come directly from the SBA. You’ll have to find a local lender who provides SBA loans in order to access the funding.
Who qualifies?
There are three main types of SBA small...