When it comes to small business loans, you have two options: private and government loans. While private lenders may be reluctant to take a risk on a new business or startup, government business loans were created specifically to boost small business in the United States.

As a result, you might find that it’s easier to secure a small business loan from the government than it is to secure one from a private lender.

Most government business loans are managed through the Small Business Association (SBA), which partners with lending institutions that actually distribute the money.

Because the loan is backed by the government — meaning if you default, the government pays of the balance — banks and credit unions are more likely to take a risk ...